Lottery Transaction Device, System and Method with Paperless Wagering and Payment of Winnings

Abstract

A lottery device, system and method incorporate lottery and non-lottery transaction capabilities within a single device that also provides for paperless wagering and payment of winnings. As part of the present invention, a transaction instrument facilitates typical consumer transactions as well as transactions related to lottery offerings and can use a reader terminal component to associate lottery tickets with the transaction instrument.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS [0001]This application claims the benefit of U.S. Application Ser No. 10 / 801,098, filed Mar. 15, 2004 and entitled “Lottery Transaction Device, System and Method”, which claims the benefit of U.S. Ser. No. 60 / 454,530, filed Mar. 13, 2003 and entitled “Lottery Inside System”, the disclosures of which are incorporated herein by reference. This application further claims the benefit of U.S. Application Ser. No. 12 / 578,320, filed Oct. 13, 2009 and entitled, “System, Device and Method for Paperless Wagering and Payment of Winnings”, which claims the benefit of U.S. Provisional Application Ser. No. 61 / 104,828, filed Oct. 13, 2008, entitled “System and Method for Paperless Wagering and Payment of Winnings,” U.S. Provisional Application Ser. No. 61 / 122,179, filed Dec. 12, 2008, entitled “System, Device and Method for Paperless Wagering and Payment of Winnings,” and U.S. Provisional Application Ser. No. 61 / 207,866, filed Dec. 29, 2008, entitled “System...

AI Technical Summary

Benefits of technology

[0010]The present invention, in part, solves the above problems by providing a lottery device, system and method which incorporates lottery and non-lottery transaction capabilities within a single, network-connected device, whereby the device communicates lottery transaction information to a central lottery server, while separately managing non-lottery transaction information, and further permitting paperless wagering and payment of winnings. The system of the present invention provides a lottery network within which one or more devices of the invention can operate. The lottery network includes a back-end transaction processor and an interface for introducing new game types into the lottery system. In this way, a lottery distributor can not only offer a range of games that changes over time, but the distributor can choose which games to offer from an ever-changing menu of game options over different device types. The present invention also allows for the incorporation of phone card, gift card, loyalty card, player card, transaction card or other desirable retailer processing and delivery capabilities via the POS device.

[0015]In part, the present invention thus provides the lottery player with the convenience of a card, such as a debit card, that can provide a variety of benefits. For example, the user card can be automatically entered into a Visa™ or other branded card affinity program, lottery wagers can be automatically deducted from the account and the card can be used anywhere a creditor debit card is accepted. Further, the player can be entered into a “Player Club” and use the card as a player card for benefits such as, for example, having an account accessible via web site for setting up favorite numbers, developing a syndicate account or accounts, entering into second chance drawings, associating purchased tickets with the account, arranging for automatic payments (i.e., never having to check a hard copy ticket to know if the player is a winner), receiving automatic alerts via e-mail, receiving an IRS 1099 form identifying all non-winners for tax deduction, experiencing express transactions at retail, and experiencing new game content such as fantasy football and other fantasy sports. Even further, the present invention can facilitate self-monitoring and independent monitoring of individual behavior to promote responsible gaming.

[0020]In another aspect of the present invention, rewards and customer relationship management (CRM) features can be incorporated. Thus, whereas the player has traditionally been anonymous, the present invention facilitates knowing what the purchasing and gaming habits are of the card holder, and can allow the card holder to earn rewards and build credits towards desirable products and services, for example. In one embodiment of the present invention, the player can remain anonymous while still earning monetary prizes and / or non-monetary rewards.

[0021]In providing the above, the present invention facilitates the operation of a gaming system without kiosks or point of sale terminals necessarily adapted for lottery transactions. Point-of-sale terminals are still employed in one implementation of the present invention, but such terminals can be ordinary retail terminals provided with reader technology to facilitate reading and writing of information to the transaction instrument. Costs of operation for the LSP are lowered, which in turn reduces costs for lottery operators and retailers. Profits are improved as well, with the ability to earn interest from winnings managed in a LSP account as well as the ability to generate revenue through better knowledge of the lottery customer. In this regard, the present invention provides a method for a lottery system operator to derive non-transaction related earnings without providing a fee to the cardholder.

[0022]In addition to the above, lotteries and players can employ new lottery offerings using the transaction instrument (e.g., a lottery-branded card). Further, the present invention improves tracking of wagering customer sessions. Even further, the present invention facilitates player convenience and security through the employment of biometric measures as described below.

Problems solved by technology

Past and modern lottery and gaming systems are beset with problems.

Gaming with physical tickets exposes lottery operators and system providers to losses due to theft of tickets and fraud.

Physical tickets also require dispensers and / or kiosks within retail environments, which can overburden retailers in their efforts to free up space for saleable merchandise.

Kiosks and other physical devices are also expensive and contribute to high infrastructure costs for retailers and lottery and / or gaming service providers who must buy, install and manage these devices.

Such steps are inconvenient to the winner, and add to the cost and oversight requirements of lottery operators.

Not only does this facilitate undesirable behaviors (e.g., addiction, tax evasion), but it does not allow the lottery operator or retailer to know anything meaningful about their market.

Despite the revenue and increased foot traffic received, lottery distributors are finding that they often cannot support the floor or counter space requirements for dedicated lottery terminals.

They also find it more difficult to train staff on multiple machines, or to satisfy customers who wish to minimize check-out line waiting while being able to purchase both merchandise and lottery tickets together.

Further, governments are finding it more difficult to fund and maintain dedicated lottery terminals, and feel they may be foregoing revenue opportunities because would-be lottery distributors do not have the physical and personnel resources to operate dedicated lottery terminals.

Images