Investment lottery process and system

• US 5,083,784 A
• Filed: 03/13/1991
• Issued: 01/28/1992
• Est. Priority Date: 11/10/1987
• Status: Expired due to Fees

• Current Assignee: Ole K Nilssen
• Original Assignee: Ole K Nilssen
• Inventors: Nilssen, Ole K.
• Primary Examiner(s): Grieb, William H.
• Assistant Examiner(s): Chiu, Raleigh W.
• Application Number:
  US07/668,899
• Time in Patent Office: 321 Days
• Field of Search: 273/138 R, 273/138 A, 434/107, 364/408, 364/412
• US Class Current: 705/14.14
• CPC Class Codes: A63F 3/06 Lottos or bingo games; Systems, apparatus or devices for checking such games small boxes with balls used for generating random numbers A63F7/048; lottery apparatus G07C15/00; lottery gaming stations, online lottery or bingo G07F17/329; printing processes for lottery tickets B41M3/005
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07C 15/005 with dispensing of lottery tickets

Abstract

A central entity issues lottery tickets to various individual entities, such as persons, in exchange for sums of money. The central entity cumulates the money thereby received and uses it for generating earnings, such as interest or dividends from investments. The holder of each lottery ticket is entitled periodically to participate in lottery drawings by which a substantial portion of the earnings for a preceeding period is paid to but one or a few of the lottery ticket holders. As a result, each lottery ticket is in effect everlasting, participating in lottery drawings on a periodic basis, such as once each week, for an indefinitely long duration. At an earnings rate of 10% per annum and with a total of $10 billion having been accumulated in lottery receipts, the weekly earnings would be about $20 million; which, if disbursed over a period of 20 years or so, as is typically done by state lottery systems, could be touted as amounting to a $50 million lottery prize.

Claims

1. An operational structure comprising:

first means operative, in exchange for receiving a specified amount of dollars, to issue a certificate means to each of a large number of individual entities;

each individual entity becoming a holder of at least one certificate means;

each certificate means bearing at least unique identification codes;

second means functionally connected with the first means and operative;

(a) to receive at least a large part of the total dollars received by the first means; and

(b) to use a substantial part of the dollars so received to purchase financial securities such as stocks and bonds, thereby to generate a profit; and

third means functionally connected with the first means and the second means;

the third means being operative to;

(i) receive disbursement funds from the second means;

(ii) receive and keep record of the unique identification codes of all the certificate means issued by the first means;

(iii) randomly choose one of the recorded unique identification codes;

(iv) effectively accredit an amount of funds to the holder of the certificate means bearing the chosen identification code;

(v) inform the various individual entities of the chosen identification code; and

(vi) effectively transfer possession of said amount of funds to the holder of the certificate means bearing the chosen identification code;

the operational structure being arranged to function such as to cause each certificate means to yield an ever-increasing probabilistic dividend.

2. The operational structure of claim 1 wherein the second means attains at least a part of the profit by way of trading financial securities.

3. The operational structure of claim 1 wherein the choosing of one of the recorded unique identification codes is repeated periodically.

4. An operational structure comprising:

first means operative, in exchange for receiving a specified amount of dollars, to issue a certificate to each of a large number of individual entities;

each individual entity becoming a holder of at least one certificate;

each certificate bearing a unique identification code;

second means functionally connected with the first means and operative;

(a) to receive at least a large part of the total dollars received by the first means; and

(b) to use a substantial part of the dollars so received for investment in financial securities such as stocks and bonds, thereby to generate a net total rate-of-return on its investment;

the rate-of-return varying from time-to-time; and

third means functionally connected with the first means and the second means;

the third means being operative to;

(i) receive disbursement funds from the second means;

(ii) receive and keep record of the unique identification codes of all the certificates issued by the first means;

(iii) randomly choose one of the recorded unique identification codes;

(iv) effectively accredit an amount of funds to the holder of the certificate bearing the chosen identification code;

(v) inform the various individual entities of the chosen identification code; and

(vi) effectively transfer possession of said amount of funds to the holder of the certificate bearing the chosen identification code;

the operational structure being arranged to function such as to cause each certificate to provide, on a probabilistic basis, a total yield proportional to the rate-of-return generated by the second means.

5. The operational structure of claim 4 wherein:

(i) the funds accredited to the holder of the certificate having the chosen identification code is made available to this holder in the form of an amount of dollars, which amount of dollars will be available for transfer to the holder within a short period after so demanded by the holder; and

(ii) until the holder actually does demand to take delivery of it, at least a substantial fraction of said amount of dollars is used by the second means for investment in additional financial securities.

6. The operational structure of claim 4 wherein, until said amount of funds is converted to dollars and actually transferred to the holder of the certificate having the chosen identification code, this certificate will provide, on a probabilistic basis, a total yield far higher than that of other certificates.

7. An arrangement comprising:

first means operative, in exchange for receiving a certain amount of dollar-equivalent funds, to issue a certificate to each of a large number of individual entities;

each individual entity becoming a holder of at least one certificate;

each certificate bearing a unique identification code;

second means functionally connected with the first means and operative;

(a) to receive at least a large part of the total dollar-equivalent funds received by the first means, (b) to use a substantial part of the dollar-equivalent funds so received to purchase financial securities such as stocks and/or bonds, thereby to acquire a portfolio of financial securities, (c) from time-to-time receive dividends and/or interest from these financial securities, thereby attaining dollar-equivalent funds, (d) from time-to-time to sell some of these financial securities, thereby attaining dollar-equivalent funds, and (e) from time-to-time to use these dollar-equivalent finds for purchasing other financial securities;

whereby the second means at any given time is in possession of a total net dollar-equivalent value represented by the sum of;

(i) the dollar-equivalent market value of its portfolio of financial securities at that given time, and (ii) any amount of dollar-equivalent funds it may have in its possession at that given time; and

third means functionally connected with the first means and the second means;

the third means being operative;

(i) to receive dollar-equivalent disbursement funds from the second means;

(ii) to receive and keep account of the unique identification codes of all the certificates issued by the first means;

(iii) to keep account of the total number of issued but not-yet-redeemed certificates; and

(iv) upon demand by a holder of a certificate, to disburse in exchange for this certificate an amount of dollar-equivalent funds corresponding to a certain fraction of the total net dollar-equivalent value possessed at that time by the second means;

this certain fraction being substantially equal to one divided by the total number of issued but not-yet-redeemed certificates;

whereby a holder of a certificate may at times redeem such certificate for a dollar-equivalent amount of funds;

which amount will fluctuate from time-to-time.

8. The arrangement of claim 7 wherein the third means is also operative, from time-to-time, to randomly choose one of the unique identification codes and to accredit to the holder of the certificate bearing that unique identification code an amount of dollar-equivalent funds.