Sports wagering exchange and method therefor

Abstract

A system and method for purchasing and trading wagering shares representing one of two possible outcomes of an event before and during the event. During each of one or more stoppages of the event, the price of the wagering shares representing a first outcome of the event and the price of the wagering shares representing a second outcome of the event are adjusted according to a progression of the event and to market supply and demand for the wagering shares. Purchasing, by bettors, of the wagering shares prior to the start of the event and trading, between the bettors, of the wagering shares prior to the start of the event and during each of the stoppages of the event is facilitated by an exchange.

Description

BACKGROUND[0001]1. Field[0002]The embodiments discussed herein are directed generally to the fields of gambling and financial instruments. More specifically, the embodiments discussed herein relate to providing systems and methods for transforming bets or wagers on sporting events or games into tradable financial instruments that can be varyingly valued during the event or game according to the progress of the event or game wagered on and according. Moreover, the tradable financial instruments are subject to varying prices due to market forces, such as supply and demand, and can be traded through an exchange that provides infinite liquidity by standing ready to buy and sell the financial instruments at all times.[0003]2. Description of the Related Art[0004]Wagering on sporting events, both in sports books in casinos and on the Internet, is a large and growing industry throughout the world. Various types of betting products and systems exist that facilitate betting on the outcome of ...

AI Technical Summary

Benefits of technology

[0006]It would be an advance in the sports wagering industry to provide a highly adaptable method for transforming bets or wagers on sporting events or games into tradable shares in order to better facilitate placing bets, trading bets, collecting winnings, managing risk, etc. It would also be an advance for the method to be able to incorporate the opinion of professional odds makers on the probability of an outcome during the course of a game. Secondarily, it would be an advance in the trading process to incorporate market forces of supply and demand with the odds makers' opinions once the game has started in order to formulate an accurate market price for the shares. Also, it would be an advance to provide the market with a market maker that provides the exchange with infinite liquidity for facilitating the placing of bets, the trading of shares, and the exchange of money, especially when there aren't an equal number of buyers and sellers who can be matched up.

[0007]Various embodiments described herein provide a method for trading wagering shares representing one of two possible outcomes of an event before and during the event. The method includes, prior to the event beginning, adjusting a price of the wagering shares such that a ratio of a number of wagering shares representing a first outcome of the event that are sold to a number of wagering shares representing a second outcome of the event that are sold is within a predetermined range. The method further includes during each of one or more stoppages of the event, adjusting the price of the wagering shares representing the first outcome of the event and the price of the wagering shares representing the second outcome of the event according to a progression of the event and to market supply and demand for the wagering shares. Also, the method includes facilitating the trading of the wagering shares prior to the event and during each of the stoppages of the event.

Problems solved by technology

Both of these methodologies require market participants to agree on a price for a trade to occur and, thus, illiquidity issues are rampant.

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