CROSS REFERENCE TO RELATED APPLICATIONS
FIELD OF THE INVENTION
This application claims the benefit of Provisional Application No. 60/591,660 filed Jul. 27, 2005.
The embodiments of the present invention relate to a method and system for buying an interest in, or wagering on, the anticipated performance of a sports team.
Sports wagering is a multi-billion dollar a year industry. Wagering legally on sports is limited to the state of Nevada. In addition, although online sports wagering is in a legal quagmire, the money wagered online on sporting events dwarfs the legal handle of Nevada sports books. Together, players have a myriad of locations and outlets to place legal and quasi-legal sports wagers.
Nonetheless, the wagering options available to players are limited. The most popular wagers relate to single game outcomes. For example, players may wager on game outcomes based on posted lines (i.e., spreads) or odds. Players may also wager on a group of game outcomes. Such wagers are termed parlays or teasers and provide enhanced payouts. For special games like the Super Bowl, players are offered proposition wagers as well. Proposition wagers may include such wagers as who will be the first player to score a touchdown or how many field goals will be kicked during the game. Players are also provided with wagers related to a team's season long performance. That is, the house sets preseason odds on each team winning the championship of the subject sport allowing players to wager on the team they believe will win the championship. Similarly, the house establishes an anticipated number of victories the team will garner during the upcoming season allowing players to wager above or below the established win number. In most cases, players must wait the entire season to determine whether the season-based wager is a winner or loser. In all cases, players must wait the entire season to collect any winnings on season-based wagers.
Although not offered as a casino wager, fantasy sports leagues are wildly popular and induce wagers within a group of participants. The popularity stems from the control participants have over their teams. That is, participants select their players during a preseason by anticipating the player's performance for the upcoming season. During the season players are then able to trade and pick-up new players to fill in gaps and to account for player injuries.
With the limited number of sports wagers being offered, there continues to be a need for new and exciting sports wagers to retain experienced players and to attract new players. Applicant has combined sports wagering concepts with the attributes of fantasy sports leagues to create a new system and method of wagering on the season long performances of sports teams.
Accordingly, a first embodiment of the present invention comprises establishing shares corresponding to one or more sports teams, said shares having a share value based upon each teams' anticipated performance during an upcoming season; adjusting the share value during the season based on each team's anticipated performance, actual performance and supply and demand principles; and offering to sell and purchase said shares at a current established value.
In one practical embodiment, a casino sports book establishing a share value for each sports team in a subject sport. The team share values are predicated on criteria related to the teams anticipated performance during the upcoming season. Once the share values are established, the sports book sells and purchases shares at the current value. Just like conventional corporate stock, players must analyze the current share value and attempt to predict whether the share value will increase or decrease based on their own belief as to the team's future actual performance.
Players then retain or sell their team shares back to the casino during, or after, the season. During the season the share values fluctuate based on supply and demand principles which correspond to the gaming public's confidence in each team to increase its share value based on its future performance. So, the more demand the gaming public has for certain team shares, the more the share value will increase and vice versa. During the season, shares on teams which continue to exceed pre-season performance predictions will likely increase in value and shares on teams which fall below season performance predictions will likely decrease in value.
Unlike the stock market, sports seasons are finite. Consequently, casinos may decide to halt selling and buying of team shares on a pre-determined date during the season. For example, there are currently sixteen NFL games played over a seventeen week schedule such that casinos may, for example, halt buying and selling after week thirteen. Alternatively, the shares may be purchased and sold until the end of the season.
Based on actual team performance, at the end of the season a final share value for each team is calculated using the same criteria used to establish the pre-season share value.
BRIEF DESCRIPTION OF THE DRAWINGS
In a conventional manner, casino personnel, namely sports book ticket handlers, are responsible for facilitating the purchase and sale of the shares. It is also conceivable that kiosks may facilitate the purchase and sale of the shares in a casino location. The shares are purchased and sold electronically in an online embodiment.
FIG. 1 shows a sampling of criteria which may be used to establish an initial team share value; and
FIG. 2 shows a chronology of events during a season which may impact the team share value.
For the purposes of promoting an understanding of the principles in accordance with the embodiments of the present invention, reference will now be made to the embodiments illustrated in the drawings and specific language will be used to describe the same. It will nevertheless be understood that no limitation of the scope of the invention is thereby intended. Any alterations and further modifications of the inventive features illustrated herein, and any additional applications of the principles of the invention as illustrated herein, which would normally occur to one skilled in the relevant art and having possession of this disclosure, are to be considered within the scope of the invention claimed.
Sports books come in two forms. The only legal sports books are located in Nevada. Many brick and mortar Nevada casinos operate sports books or lease space for an independent sports book operator. The second form is the online sports book. While the Justice Department takes the position that online sports books are illegal, there exist in excess of 100 active online sport books. The embodiments of the present invention are suitable for both forms of sports books. From a technical standpoint, the embodiments of the present invention are facilitated by human intuition and knowledge in combination with computer software.
Sports books rely heavily on software. The software, along with input from odds makers, tracks and alters odds, records player wagers, facilitates ticket printing and generally maintains a history of player wagers. The embodiments of the present invention may be facilitated by modifying current sports book software or drafting entirely new software code. Those skilled in the art will understand the nature of the code required to facilitate the embodiments of the present invention such that the minute details are not disclosed herein.
Reference is now made to the figures wherein like parts are referred to by like numerals throughout. FIG. 1 shows a list 100 incorporating one set of criteria for establishing a preseason team share value. At the casino level, odds makers are responsible for using their own criteria and experience in developing and predicting an accurate team share value. In the scenario depicted, odds makers have predicted that the NFL's Chicago Bears will have a final win/loss record of 10-6. The record corresponds to a winning percentage of 0.625 or 62.5%. In this first embodiment, the win/loss record serves as the foundation for the team's share value. In this example, the 62.5% translates into $62.50 or $1.00 per percentage point. The dollar amount accorded each percentage point and other achievements may be modified as desired by the casino. The odds makers have also predicted that the Bears will win the division thereby making the playoffs. Further, the prediction is that the Bears will win the first one of the playoff games. Based on the list 100, the division title is worth $3.00, each playoff game is worth $5.00 and each corresponding win is worth $10.00. Consequently, the Bears opening share value is calculated to be $85.50 as follows: $62.50+$3.00+$10.00+$10.00. As set forth in the list 100, other milestones play a part in the share value.
It should be obvious to those skilled in the art that many other criteria may be involved in determining the share value. Indeed, the valuation process may use very detailed criteria including the anticipated number of points, touchdowns and yards achieved during the season.
Now referring to FIG. 2, a chronological outline of events 200 occurring during the Bears season is illustrated. As calculated using the criteria of the list 100, the Bears opened at a share value of $85.50. Two weeks after the shares are offered for sale, trading of the Bears is slow with more sellers than buyers. Accordingly, the casino lowers the share value to $75.00. Each casino may use a different formula for adjusting the team share values it offers. Alternatively, a central entity similar to the NYSE may be responsible for tracking team share values in a consistent manner across all gaming properties, including online outfits.
As further illustrated in FIG. 2, as the season progresses from the opening of trading on February 28th to January 23rd of the following year, certain events transpire which impact negatively or positively the perceived and actual share value of the Bears. For example, the Bears lost their first three games causing the share value to plummet on fears that the share value of the Bears would not be able to exceed the pre-season or opening value. Notwithstanding the slow start, using the criteria from the list 100, the Bears' share value ends at $91.25 for an increase of $5.75 (i.e., $91.25−$85.50=$5.75) from the opening value. Thus, for each share owned by a player, he or she is entitled to $91.25. Depending on when the player purchased the shares, he or she either won or lost money. For example, prior to the game on January 23, the share value was $100.00 even though the calculated actual value was $91.25. Players may have purchased the shares at $100.00 anticipating another Bear's victory which would have increased the share value to above the $100.00 level. Unfortunately, the Bears did not win the game on January 23rd and the late season purchasers stand to lose $8.75 per share calculated as follows: $91.25−$100.00=$8.75. On the other hand, players purchasing shares of the Bears on September 25th and holding the shares through the end of the season stand to earn $33.25 per share calculated as follows: $91.25−$58.00=$33.25.
In one embodiment of the present invention, players purchase the shares as they would regular corporate stock and retain or sell the shares as they desire. Correspondingly, players may also borrow and short the shares. That is, they may feel that a team share value is overpriced so they desire to make money on a decrease in share value. To facilitate such an embodiment, the casino lends the teams shares to a player at the current value. The player then sells the shares to another player at that value and that money is placed in a player account. Should the share value decrease, the player buys back the shares at the decreased value and returns them to the casino while retaining the profit. Should the share value increase after the player borrows the shares, the player must pay the increased value thereby losing money.
In another embodiment, players place wagers on whether the shares will increase or decrease and win payouts related to the magnitude of the increase or decrease. If the shares move in the opposite direction wagered on by the player, the player loses the wager.
Any trades or operations available with stocks are conceivable with the sports team shares. For example, players may be provided an option of purchasing a fund comprising several teams.
Although the invention has been described in detail with reference to several embodiments, additional variations and modifications exist within the scope and spirit of the invention as described and defined in the following claims.