Betting system and method

• US 7,206,762 B2
• Filed: 01/17/2001
• Issued: 04/17/2007
• Est. Priority Date: 03/28/2000
• Status: Active Grant

• Current Assignee: Deriv Com Limited
• Original Assignee: Regent Markets Group Limited
• Inventors: Sireau, Jean-Yves
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US09/764,778
• Publication Number:
  US 20010032169A1
• Time in Patent Office: 2,281 Days
• Field of Search: 705/37, 463/26
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/34 Betting or bookmaking, e.g. Internet betting
• CPC Class Codes: G07F 17/3288 Betting, e.g. on live events, bookmaking

Abstract

A fixed-odds betting system comprises a user terminal operable to accept parameters input by a user and relating to a fixed-odds bet on an aspect of a financial market; and a central processing machine having a data feed to a source of data concerning a financial market and means operable to calculate the fixed odds for the bet, based on at least some of the parameters input by the user and the data obtained from the data feed.

Claims

1. A method of operating a fixed-odds betting system including a central processing machine in communication with a data feed to a source of data concerning a financial market, and a user terminal in communication with the central processing machine, the method comprising the steps of:

via the user terminal, accepting from a user multiple parameters relating to a fixed-odds bet on an aspect of a financial market;

at the central processing machine, receiving one or more of the parameters from the user terminal;

at the central processing machine, obtaining data concerning the financial market via the data feed;

at the central processing machine, calculating a fixed-odds price for the bet based on at least one of the parameters received from the user terminal and the data obtained from the data feed; and

communicating the fixed-odds price to the user.

2. A method according to claim 1, further comprising displaying the calculated fixed-odds price to the user.

3. A method according to claim 1, further comprising:

receiving an authorization from the user to place the bet; and

receiving a payment from the user for placing the bet.

4. A method according to claim 1, further comprising:

placing the bet; and

crediting an account of the user in response to fluctuation of said aspect of the financial market satisfying the parameters of the bet.

5. A method according to claim 1, wherein the step of obtaining data concerning the financial market includes obtaining real-time data.

6. A method according to claim 1, wherein the step of obtaining data concerning a financial market includes obtaining historical data representative of a history of market prices.

7. A method according to claim 1, wherein the step of calculating the fixed-odds price comprises calculating an estimate of a future volatility of the financial market.

8. A method according to claim 7, wherein:

the step of obtaining data concerning the financial market includes obtaining real-time data concerning the financial market; and

the step of calculating the estimate of the future volatility of the financial market is at least partially based on the real-time data.

9. A method according to claim 1, further comprising:

before calculating the fixed-odds price, checking the parameters input by the user for logical inconsistencies therebetween.

10. A method according to claim 1, further comprising:

before calculating the fixed-odds price, checking an opening time of the financial market.

11. A method according to claim 1, wherein:

the central processing machine is in communication with a second data feed to a source of data concerning a second financial market different from the financial market; and

the step of receiving parameters from the user terminal includes receiving parameters relating to an aspect of the second financial market.

12. A method according to claim 1, wherein:

the central processing machine is in communication with a second data feed to a source of data concerning a second financial market different from the financial market; and

the step of calculating the fixed-odds price for the bet includes calculating a correlation matrix containing information concerning the financial market and the second financial market.

13. A method according to claim 1, wherein the system further includes a data storage facility accessible by the central processing machine, and further comprising storing in the data storage facility information relating to previously placed bets.

14. A method according to claim 13, further comprising reading from the data storage facility the stored information relating to previously placed bets, and wherein the step of calculating the fixed-odds price for the bet includes calculating a hedging factor based on the information concerning previously placed bets read from the storage facility.

15. A method according to claim 13, further comprising:

at the central processing machine, calculating a price at which to offer to buy one or more of the previously placed bets.

16. A method according to claim 15, further comprising providing the price to the user via the user terminal.

17. A method according to claim 1, wherein the financial market includes a foreign currency market.

18. A method according to claim 1, wherein the financial market includes a commodities market.

19. A method according to claim 1, wherein the financial market includes a stock market.

20. A method according to claim 1, wherein the aspect of the financial market includes a change in a market index.

21. A method according to claim 1, wherein the aspect of the financial market includes a change in a stock price.

22. A method according to claim 1, wherein the aspect of the financial market includes a change in a foreign currency exchange rate.

23. A method according to claim 1, wherein the step of receiving one or more parameters from the user terminal includes receiving an identifier of a selected financial market.

24. A method according to claim 1, wherein the step of receiving one or more parameters from the user terminal includes receiving information regarding an amount that the user wishes to win.

25. A method according to claim 1, wherein the step of receiving one or more parameters from the user terminal includes receiving a target level of the aspect of the financial market.

26. A computer program embodied on a computer readable medium and operable on a central processing machine in communication with a data feed, for:

receiving one or more parameters from a user relating to a fixed-odds bet on an aspect of a financial market;

obtaining data concerning the financial market via the data feed;

calculating a fixed-odds price for the bet based on at least one of the parameters received from the user and the data obtained via the data feed; and

communicating the fixed-odds price to the user.

27. A computer program according to claim 26, wherein the step of calculating the fixed-odds price comprises calculating an estimate of a future volatility of the financial market.

28. A computer program according to claim 27, wherein:

the data feed includes a real-time data feed; and

the step of obtaining data concerning the financial market includes obtaining real-time data concerning the financial market via the data feed; and

the step of calculating the fixed-odds price is at least partially based on the real-time data.

29. A fixed-odds betting system comprising:

means for accepting bet parameters from a user relating to a fixed-odds bet on an aspect of a financial market;

means for obtaining financial market data;

means for calculating a fixed-odds price for the fixed-odds bet based on at least one of the bet parameters from the user and at least some of the financial market data obtained; and

means for communicating the fixed-odds price to the user.

30. A fixed-odds betting system according to claim 29, wherein at least one of the bet parameters is a predicted performance of an aspect of the financial market and further comprising means for calculating a fixed odds for the predicted performance of the financial market.

31. A fixed-odds betting system according to claim 30, wherein the predicted performance includes a predicted fluctuation of the aspect of the financial market during a bet period of the bet.

32. A fixed-odds betting system comprising:

a user terminal operable to accept from a user multiple parameters relating to a fixed-odds bet on an aspect of a financial market;

a data feed to a source of data concerning the financial market; and

a central processing machine in communication with the data feed and the user terminal, the central processing machine operable to calculate a fixed-odds price for the fixed-odds bet based on at least one of the parameters input by the user and data obtained from the data feed.

33. A system according to claim 32, wherein the data feed includes a real-time data feed to a source of real-time data concerning the financial market.

34. A system according to claim 32, wherein the source of data concerning the financial market includes a source of historical data concerning the financial market.

35. A system according to claim 32, wherein the central processing machine is in communication with the data feed over a data communications network.

36. A system according to claim 32, further comprising a second data feed to a source of data concerning a second financial market different from the financial market.

37. A system according to claim 36, wherein the central processing machine is operable to compute a correlation matrix for the financial market and the second financial market.

38. A system according to claim 32, wherein the central processing machine is in communication with the user terminal over a data communications network.

39. A system according to claim 38, wherein the central processing machine serves an interface to the user terminal, and the user terminal is operable to display the interface to the user for facilitating input of the parameters.

40. A system according to claim 39, wherein the interface includes a set of menus from which the user can select at least some of the parameters.

41. A system according to claim 32, further comprising a data storage facility accessible by the central processing machine, the data storage facility operable for storing information regarding previously placed bets.

42. A system according to claim 32, further comprising a multiple other user terminals in communication with the central processing machine for accepting bets from other users, and wherein the central processing machine is operable to identify one or more successful users whose bets are consistently successful.

43. A system according to claim 42, further comprising means for providing to a third party information concerning bets placed by one or more of the successful users.

44. A system according to claim 32, further comprising a facility for buying back the fixed-odds bet from the user.

45. A system according to claim 32, further comprising a payment system in communication with the central processing machine and configured to receive a payment from the user for the fixed-odds price.

46. A system according to claim 32, further comprising an accounting system linked to the central processing machine.

47. A system according to claim 46, wherein the accounting system maintains an account for the user and credits the account in response to fluctuation of said aspect of the financial market satisfying the parameters of the fixed-odds bet.

48. A computer-implemented method for betting on a financial market, comprising:

presenting an interface including a set of menus for facilitating selection of a set of parameters for a bet;

receiving the set of parameters from a user via the interface;

obtaining financial market data concerning the financial market;

calculating a fixed-odds price for the bet based on the set of parameters received from the user and at least some of the financial market data;

offering the bet to the user for the fixed-odds price; and

receiving from the user an acceptance of the offer and a payment of the fixed-odds price.

49. A method according to claim 48, wherein the financial market includes a foreign currency market.

50. A method according to claim 48, wherein the financial market includes a commodities market.

51. A method according to claim 48, wherein the financial market includes a stock market.

52. A method according to claim 48, wherein the set of parameters includes a change in a market index.

53. A method according to claim 48, wherein the set of parameters includes a change in a stock price.

54. A method according to claim 48, wherein the set of parameters includes a change in a foreign currency exchange rate.

55. A method according to claim 48, wherein the set of parameters includes a selected financial market.

56. A method according to claim 55, wherein the set of parameters includes:

a target for the selected financial market;

a second selected financial market; and

a target for the second selected financial market.

57. A method according to claim 56, wherein the step of calculating the fixed-odds price for the bet includes calculating a correlation matrix for the selected financial market and the second selected financial market.

58. A method according to claim 48, wherein the set of parameters includes a bet period.

59. A method according to claim 58, wherein calculating the fixed-odds price comprises estimating a future volatility of the financial market during the bet period.

60. A method according to claim 48, wherein the set of parameters includes a bet expiration time.

61. A method according to claim 60, wherein calculating the fixed-odds price comprises estimating a future volatility of the financial market for a period preceding the bet expiration time.

62. A method according to claim 48, wherein the financial market data includes real-time market data.

63. A method according to claim 48, wherein the financial market data includes historical market data.

64. A method according to claim 48, wherein the set of parameters includes a target for an aspect of the financial market.

65. A method according to claim 64, wherein the target includes a range.

66. A method according to claim 64, wherein the target includes a barrier.

67. A method according to claim 64, wherein the financial market includes a foreign currency market and the target includes a predicted currency exchange rate.

68. A method according to claim 64, wherein the financial market includes a stock market and the target includes a predicted stock price.

69. A method according to claim 64, wherein the aspect of the financial market includes a market index.

70. A method according to claim 69, wherein the financial market includes a commodities market.

71. A method according to claim 69, wherein the financial market includes a stock market.

72. A method according to claim 48, further comprising:

monitoring the financial market; and

in response to the financial market meeting the set of parameters, providing a bet payoff to the user.

73. A method according to claim 72, wherein the set of parameters includes a bet period and the step of monitoring of the financial market includes obtaining market data for the bet period.

74. A method according to claim 48, wherein the step of offering the bet to the user involves offering the bet to the user for a limited time.

75. A method according to claim 74, wherein the limited time is between 30 seconds and 60 seconds.

76. A method according to claim 48, wherein:

the financial market has a growth rate; and

the step of calculating the fixed-odds price is at least partially based on the growth rate.

77. A method according to claim 48, wherein the bet has a bet expiration time, and, after receiving the acceptance and the payment from the user and before the bet expiration time, further comprising:

calculating a current value of the bet; and

offering to buy the bet from the user for a price based on the value of the bet.

78. A method according to claim 48, further comprising:

storing information concerning the bet and one or more other previously-placed bets; and

calculating a hedging factor based on the bet and the previously-placed bets.

79. A method according to claim 48, further comprising:

storing predictions made by multiple bettors;

comparing the predictions to outcomes of events to which the predictions relate; and

identifying at least one successful bettor whose predictions are consistently similar to the outcomes.

80. A method according to claim 79, further comprising offering to a third party information comprising subsequent predictions made by the at least one successful bettor.