CY1493A

CY1493A - A fixed odds betting apparatus

Info

Publication number: CY1493A
Application number: CY149386A
Authority: CY
Inventors: Michael John Bell
Original assignee: Atl Pty Ltd
Priority date: 1985-09-20
Filing date: 1986-07-23
Publication date: 1990-02-16
Also published as: GB2180675A; GB8618000D0; GB2180675B

Description

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SPECIFICATION

Afixed odds betting system

5 Field of the invention

, This invention concerns apparatus for receiving and registering betting wagers at displayed odds whether fixed price orexpected dividend and for automatically adjusting such odds in accordance with liabilities already incurred. Wagers may be placed at one or more betting locations on one or more participants in an intended contest.

10 This invention appliesto wagers on single or multiple contestants winning orcompleting in aspecified sequence or specified sequences asingle contest or multiple contests.

Background ofthe invention Operators of gambling systems such as those used on racecourses are traditionally divided into two groups. 15 The first g rou p is that which accepts wagers with a payout which is ag reed at the time the wager is made. These are 'bookmakers' and offer 'fixed price bets'. There are normally a number of bookmakers at a racecourse in a competitive market and the average of their offered fixed prices or 'odds' at the time the race starts isthe 'starting price'.

The second group accepts wagers on the basis that all monies which have been bet will be shared amongst 20 the winners afterthe deduction of a commission to coverthe overheads ofthe operator. These are'tote operators' and pay a 'dividend' to winners. There is normally only one such operator at a racecourse and its activities are normally defined by government regulation.

The operatees of gambling systems are'punters'.

Fixed price betting is inherently more attractive to the avid punter as he knows atthetime of making the 25 wager what his winnings will be. With tote betting, the actual dividend paid may be considerably lessthan that expected at the time the wager was made. To satisfy this demand, tote operators would like to provide afixed price betting service for punters.

This invention provides a fixed price betting service in conjunction with the provision of totalisator betting. One problem in providing afixed price betting service on its own is that it is essentially gambling on the part 30 ofthe operator. Having accepted some wagers and their incurred liabilities, the fixed price betting operator has no guarantee that other wagers will be made to coverthe liability. Tote operators, being govenment legislated bodies, are not empowered to gamble in this way. The embodiments ofthe invention overcome this problem and allows tote operators to gain income merely from the commission deducted from total turnover.

A second problem is that of deciding what prices are to be offered at the commencement of betting. If these 35 are not representative of the true merits ofthe contestants, either intentionally or unintentionally on the part of the individual deciding them, then the operator could be liable for losses as outlined above. The embodiments ofthe invention overcome this problem by automatically determining what these offered prices should be.

A third problem isthat of maintaining a distribution of wagers in such a way that the liability of any one contestant does notexeed the total amountwagered. The embodiments ofthe invention overcome this 40 problem by automatically adjusting the prices being offered to accountfor the total amountwagered and the liability already incurred for that contestant.

A number of other problems related to immunity from price-rigging, stability of offered oddsandthe maintenance of a minimum totalisator dividend are also addressed by embodiments of this invention. According to one aspect, the present invention comprises a fixed odds betting system providing fixed price 45 and expected dividend betting including;

a control unit,

a plurality of betting terminals coupled to said control unitfor inputting details of a punter's wager,

a plurality of display means fordisplayingoddsand expected dividends, coupled to said control unit, a control terminal for inputting control instructions to thesystem, coupled to said control unit, said control t 50 unit comprising:

liability calculation means for calculating from the information received from each betting terminal the liabilityincurredfor each contestant,

„ first accumulation meansforcalculatingthetotal amountofmoney wagered;

second accumulation means forcalculating the total amount of uncancellable expected dividend wagers; 55 fixed price calculation meansfor calculating the fixed price payable in respect of each contestant;

expected dividend calculation means forcalculating the expected dividend payable in respect of each contestant;

said control unit adapted to operate such that the liability incurred for any one contestant cannot exceed the total amount of money wagered,

60 and, said betting terminals are adapted to issue a record of each betting transaction indicating details of wager, and thefixed price payable in respect of said wagerfollowing completion ofthe calculations by said control unit in respect of said transaction,

said system adapted to intially only provide expected dividend betting until the total amount of uncancellable expect dividend wagers is equal to a predetermined figure after which both expected dividend 65 and fixed price betting are provided.

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Embodiments of the invention will noto be described, by way of example only, with reference to the accompanying drawing in which:

Figure 1 shows a block schematic ofthe betting system according to the invention.

In a preferred form the apparatus of the invention is applied and utilised for betting transactions occurring in 5 a number of betting positions around a racecourse. In such a case there will be several races each possibly 5

containing between ten and twenty-four contestants in respect of which a large variety of odds, both fixed price and expected dividend, may be displayed in accordance with their degree of favouritism, and wagers may be made at stakes which vary in value between very wide limits.

Referring to the drawing, the betting system iscomprised of a central control unit! with computational 10 facilities, multiple betting terminals 2, multiple displays3forfixed prices, multiple displaysfor expected 10

dividends 4 and multiple control terminals 5. These components may be dependently or independently powered butfunction as a cohesive system due to the exchange of data. In the preferred embodiment, such exchange of data occurs over communications cables but any other responsive communications method is acceptable.

15 In the preferred embodiment, the betting terminals use keyboards and pre-marked slip and ticket readers as 15 input meansto receive the details of the punter's wager. Other input devices such as touch TV screensare acceptable. Such wagers may be at the current fixed price or they may be totalisator bets.

The details ofthe punter's wager are transmitted to the control unit where they are recorded for use in the computation ofthe liability incurred on each contestant and its resultant fixed price and expected dividend. 20 Notification thatthe wager is accepted and recorded atthe control unitistransmittedtotheoriginating 20

terminal where a receipt is printed as the punter's record ofthe wager. This receipt also bears a codewhich uniquely identifies the corresponding record at the control unit.

Simultaneously, the currentfixed price being offered and dividend expected are computed by the control unit and displayed on the relevant displays. These displays may be television monitors, multi-segment panels, 25 dot-matrix panels or video-matrices. 25

To overcome operator and punter mistakes, a facility is provided to cancel a wager after it has been recorded. This is achieved atthe betting terminal by entering the wager's unique identification codetogether with a function code for cancellation. This information is transmitted to the control unit where the wager is removed from the accumulated totals of wagers and liabilities. A response is transmitted to the originating 30 terminal where a printed receipt ofthe cancellation is produced. The expected dividends and fixed prices are 30 recalculated to accountforthe cancelled wager and the new values are displayed.

In the preferred embodiment, cancellation is inhibited forfixed price wagers to prevent price rigging.

The system needs a pool of tote bets which cannot be cancelled. This can be constituted by the transfers from the government legislated body controlling tote betting or it can be provided from the race course in the 35 following way: 35

Allowthe system to cancel a punter's tote bets whilethe punter is still atthe betting terminal, butprevent cancellation of these bets after some other punter has placed a bet at that betting terminal. This is accomplished by having the betting terminal operator orthe punter indicate when he has completed his bets by pressing a button ontheterminal.Thisis communicated to the control unit which thereafter inhibits 40 cancellation of all bets made atthatterminal beforethe notification. 40

Two sets of collations are maintained fortote bets.

One set includes all uncancelled tote bets made so far including those which may yet be cancelled. This is used for calculating the expected dividends.

The other includes only those tote bets which cannot be cancelled. In the preferred embodiment this second 45 set of collations consists of only the transfers from the government legislated body controlling tote betting but 45 it could include uncancellable on-course tote bets as described above.

A proportion ofthe uncancellable tote bets is used in the calculation ofthe expected dividends and the remainder is used in the calculation of fixed prices. This proportion is a system parameter between 1 %and 99% and in the preferred embodiment is 50%.

50 In the beginning, onlytote betting is allowed. Expecteddividendsbasedonthefirstsetofcollationsare 50

displayed.

The expected dividend fora contestant is calculated asfollows (Equation!.):

prwn « TFPW + P*TUTW )*( 1 - T&C) - FPL(C))

55 (FPW{C) + P*UTW(C)) 55

where

ED(C) is the expected dividend forthis contestant,

TFPW is the total of all fixed price wagers,

60 P istheproportionsuppliedasasystemparameter, 60

TUTW isthetotal of all uncancellable tote wagers,

T&C is the proportion deducted from taxation and commission,

FPL(C) isthefixed price liability already incurred on this contestant,

FPW(C) isthesum offixed price wagers on this contestant, and

65 UTW(C) isthesum of uncancellabletotewagersonthiscontestant. 65

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Note that the expected dividend for a contestant is undefined if the denominator iszero.

It will be seen that, priorto the commencement of fixed price betting, there will be no fixed price liability on any contestant and that, forthe preferred implementation in which the uncancellabletote wagers are infact the transfers from a government legislated body controlling tote betting, this equation reduces to the 5 traditional expected dividends based on tote betting.

In many places, tote regulations require that a minimum dividend be paid in return fora wager and thatthe deficit be made up firstly from other dividends and, ultimately, from the tote operator's revenues.

When the expected dividend for a contestant (as calculated by Equation 1) is less than the minimum dividend then the deficit iscalculated asfollows (Equation 2):

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MDD(C) = (FPW(C) + P*UTW(C)) * (GMD-ED(C))

where

MDD(C) is the minimum dividend deficit on the contestant,

15 GMD is the guaranteed minimum dividend, and the other terms are as in Equation 1

The expected dividend is then set equal to the minimum dividend (Equation 3):

ED(C) = GMD

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Note that if the expected dividend for a contestant from Equation 1 is greater than the minimum, then the deficit forthat contestant is zero.

Priorto display, the expected dividends are rounded down or up to the nearest payment increment as defined in the legislation pertaining to the installation. In the preferred embodiment they are rounded down to 25 the nearest 5 cents.

When a certain preset condition is satisfied, the system automatically enables fixed price betting and commences displaying fixed prices as well as expected dividends. This condition could bethattheamount wagered as uncancellabletote bets has reached a preset figure or, as in the preferred embodiment, thatthe initial transfers from the government legislated body controlling tote betting have been received. Manual 30 override forthe enable is provided via the control terminals.

Thefixed price for each contestant is calculated asfollows (Equation 4):

((1-P)*TUTW + MFPW) * (1 - T&e)

35 1 ' ~ ((1-P)*UTW(C> + MFPW)

where

FP(C) is the fixed price for the contestant,

MFPW is the maximum allowed fixed price wager and all other symbolsare as defined previously.

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The maximum allowed fixed price wager is a system parameter, the effect of which is to control the growth offixed price liability. It may be a fixed value or dynamic. In the preferred embodiment it is set to 1% of the currenttotal of uncancellable tote wagers.

In effect, the fixed price fora contestant is whatthe expected dividend would be if afixed price wagerequal 45 to the maximum allowed had been placed on that contestant

Note thatthe fixed prices offered in Equation 4cannot result in the system operator having a fixed price liability in excess of the amount available to cover it. As fixed price betting proceeds, the system must respond to changes in the distribution of betting so as to maintain this situation. It does this by adjusting the fixed prices offered for each contestant in accordance with the betting trends.

50 If fixed price wagers are made, resulting in a liability for a particular contestant, then this liability must be deductedfrom the amount availableto cover future liabilities otherwise the total incurred liability may grow, through excessively high fixed odds, to exceed the monies availableto coverthe liability.

Note that the greater the offered fixed price, the greaterthe incurred liability if the wager is made. When computing the fixed odd to be offered, therefore, the system should respond not only to previously incurred 55 liability but also to the price at which it wasincurred.

Forthis reason the system exaggerates the previously incurred liability by a responsiveness factor which is proportional to the averagefixed price for previously incurred liability as follows (Equation5):

60 RRC, = FPVWT *SRP

where

RF(C) isthe responsivenessfactorforthecontestant,

65 SRP isthe system responsiveness parameter and ail other symbols are as defined previously.

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Notethat if FPW{C) equals zero, then RF(C) is set equal to one. Note also that thesystem responsiveness parameter may be changed to suitthe implementation and in the preferred embodiment is set equal to 4%. In this way the system is especially responsive to liabilities incurred at high prices.

With these considerations, the calculation of fixed price for a contestant may bedefined as follows (Equation 5 6):

( [(1-P)*TUTW+MFPW)*(1-T&C)-MDD(C)-FPL(C)*RF(C)) ( ' ((1-P)*U7W(C) + MFPW)

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where all symbols are as defined previously.

Note that it is possible forthe fixed price so calculated to actually offer less than money wagered back. However, this situation would notarise realistically as punters would not make wagers on a contestant forlittie or no return.

15 Analysis ofthe equation above shows that it is impossible to incur a liability in excess ofthe monies available to cover it. In this way, the invention provides a system whereby its operator may function on the basis of a commission deducted from total turnover and not from a profit/loss gambling mechanism.

Itis essential to the maintenance ofthesystem that the fixed prices offered be recalculated each time a fixed price wager is made. As the frequency of fixed price wagers increases approaching the running ofthe race, this 20 could result in marked fluctuations in the fixed prices being offered. If this becomes excessive, punters may be unable tofollow betting trends and may decide not to use the system.

To provide apparent stability offixed prices being offered thesystem does not display the exact fixed prices as calculated above in Equation 6, but uses those values to select from a range of prices for display and usein later com putatio ns.

25 Forthe preferred embodimentthe range is asfollows:

from $1.00 to $1.95 in increments of $0.05,

from $2.00 to $2.90 in increments of $0.10,

from $3.00to $4.75 in increments of $0.25,

fro m $5.00 to $9.50 in increments of $0.50,

30 from $10.00 to $19.00 in increments of $1.00,

from $20.00to $45.00 in increments of $5.00,

from $50.00 to $100.00 i n i ncrements of $10.00.

It will be understood by those skilled in the art that other embodiments and modifications of the invention described are possible without departing from the scope or spirit of the invention.

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Claims

1. Afixed odds betting system providing fixed price and expected dividend betting including:

a control unit,

40 a plurality of betting terminals coupled to said control unit for inputting details of a punter's wager,

a plurality of display means for displaying odds and expected dividends, coupled to said control unit, a control terminal for inputting control instructions to the system, coupled to said control unit,

said control unit comprising:

liability calculation means for calculating from the information received from each betting terminal the 45 liability incurred for each contestant,

first accumulation means for calculating the total amount of money wagered;

second accumulation meansforcalculating thetotal amount of uncancellable expected dividend wagers; fixed price calculation meansfor calculating thefixed price payable in respect of each contestant;

expected dividend calculation means for calculating the expected dividend payable in respect of each 50 contestant;

and, said betting terminals are adapted to issue a record of each betting transaction indicating details of a wager, and the fixed price payable in respect of said wagerfollowing completion ofthe calculations by said 55 control unitin respect of said transaction,

said system adapted to initially only provide expected dividend betting until the total amount of uncancellable expect dividend wagers is equal to a predetermined figure afterwhich both expected dividend and fixed price betting are provided.

2. Afixed odds betting system according to claim 1 wherein each betting terminal includes input meansfor 60 receiving details of a punter'swager.

3. Afixed odds betting system according to claim 2 wherein said input means comprises a keyboard and reader means adapted to read information from a premarked slip orticket.

4. Afixed odds betting system accordingto claim 3 wherein each betting terminal includes printer means adapted to print a receipt including said record of each betting transaction and a code uniquely identifying said

65 record.

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5. Afixed odds betting system according claim 1 wherein said control unitfurther includes wager cancellation means adapted to remove a wager from the system by adjusting said total amount of money wagered and said liability incurred for each contestant and recalculating the fixed price and the expected dividend payable on each contestant.

5 6. Afixedoddsbettingsystemaccordingtoclaim5whereinsaidbettingterminaloriginatingarequestfor 5 a wager cancellation issues a receipt including details of said cancellation following cancellation by said wager cancellation means.

7. Afixed odds betting system according to claim 6wherein wagers made using fixed price betting are not » cancellable by said wager cancellation means unless said request is made before a further transaction is

10 processed by said betting terminal originating said request. 10

8. Afixed odds betting system according to claim 7 wherein said total amount of uncancellable wagers includes transfers of funds from a government legislated body controlling tote betting.

9. Afixed odds betting system according to claim 1 wherein said first accumulation means includes means forcalculating the total of all fixed price wagers, said second accumulation means includes meansfor

15 calculating the total of uncancellable expected dividend wagers on each contestant, and said liability 15

calculation means includes means for calculating afixed price liability incurred in respect of each contestant.

10. Afixed odds betting system according to claim 9 wherein said control unit includes a third accumulation means forcalculating thetotal amount of fixed priced wagers on each contestant.

11. Afixed odds betting system according to claim 10 wherein the expected dividend for any one

20 contestant is calculated by said expected dividend calculation means in accordance with thefollowing 20

equation:

((TFPW + P*TUTW )*( 1 -T&C)- FPL(C))

25 ' ' (FPW(C) + P*UTW(C)) 25

where

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ED(C) isthe expected dividend for said contestant,

TFPW isthetotal of all fixed pricewagers,

P is a constant proportion supplied as a system parameter,

TUTW isthetotal of all uncancellable expected dividend wagers,

T&C is a proportion deducted fortaxation and commission,

FPL(C) isthefixed price liability already incurred on said contestant,

FPW(C) isthe sum of fixed pricewagers on said contestant, and

UTW(C) is thetotal of uncancellable expected dividend wagers on said contestant, and

C is an integer representative of said contestant.

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12. Afixed odds betting system according to claim 11 wherein fixed price for any one contestant is calculated bysaidfixed price calculation means in accordance with the foil owing equation:

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FP(C) =

((1-P)*TUTW + MPFW) *( 1-T&C) ((1-P)*UTW(C) + MFPW)

45 where

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FP(C) isthefixed priceforsaidcontestant, MFPW is a maximum allowed fixed price wager.

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13. Afixed odds betting system accordingto claim 11 wherein a fixed priceforany one contestantis calculated bysaidfixed price calculation means in accordance with thefollowing equations:

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(K1-P)*TUTW+MFPW)*(1-T&C)-MDD(C)-FPL(C)*RF(C)) 55 FP{C) ((1-P)*UTW(C) + MFPW) 55

where,

60 RFIC)-?sl=r *SRP 60

MDD(C)= (FPW{C) + P*UTW(C)) * (GMD-ED(C))

SRP is a system responsiveness para meter, and GMD is a guaranteed minimum dividend.

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14. Afixed odds betting system accordingto claim 11 wherein said control unit comprjsescomputer means.

15. Afixed odds betting system substantially as hereinbefore described with reference to, and as illustrated in, the accompanying drawings.

Printed for Her Majesty's Stationery Office by Croydon Printing Company (UK) ltd, 2/87, D8817356. Published by The Patent Office, 25 Southampton Buildings, London WC2A1AY, from which copies may be obtained.

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