No Rake Wagering Platform Eliminates Spread for Fair Odds
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Solution Overview
Problem
Traditional sports wagering platforms retain a per-outcome fee through rake lines, which can lead to unfair odds and increased financial transactions, network traffic, and security risks.
Innovation Solution
A no rake wagering platform that converts accessed rake line data into a no rake line by eliminating the spread between positive and negative rake lines, allowing members to wager on true odds within groups, with winnings and losses transferred directly between members, reducing the need for external financial transactions and enhancing privacy and security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If traditional rake lines are used in sports wagering, then the wagering platform can retain per-outcome fees, but this results in unfair odds and increased financial transaction burdens
Solution Approach 1:
The patent extracts and eliminates the rake fee component from the wagering system by implementing a no-rake line where the spread between positive and negative money lines is removed. This allows the system to operate without retaining per-outcome fees, directly reducing the financial transaction burden on members while eliminating the harmful rake fee mechanism simultaneously.
Solution Approach 2:
The patent changes the fundamental parameter of money line structure by eliminating the spread between positive and negative money lines. This parameter change transforms the wagering system from one that generates rake fees through asymmetric odds to one with symmetric, fair odds, thereby reducing transaction burdens and eliminating the harmful rake fee structure.
2Loss of energy
If rake lines with spread between positive and negative money lines are used, then the platform can generate revenue, but this increases network traffic and security risks
Solution Approach 1:
The patent removes the rake line spread mechanism that generates unnecessary network traffic and security vulnerabilities. By implementing direct peer-to-peer wagering without a centralized rake collection system, the patent reduces network communication overhead and eliminates security risks associated with centralized financial transaction processing.
Solution Approach 2:
The patent enables members to wager directly with each other in a peer-to-peer manner, where participants themselves manage and transfer funds without requiring centralized platform intervention. This self-service approach reduces network traffic related to centralized transaction processing and enhances security by eliminating the single point of vulnerability in centralized systems.
3Loss of information
If traditional wagering with rake fees is implemented, then the platform operates with centralized control, but this reduces transparency and member privacy
Solution Approach 1:
The patent implements a self-service wagering system where members directly manage their own funds and transactions with each other. This eliminates the need for centralized platform control over financial transactions, thereby enhancing member privacy while improving transparency as members can directly observe and verify the fair odds and transaction outcomes without platform interference or hidden rake fees.
Data Source
AI summary
Methods, systems, and apparatus, including computer programs encoded on a computer storage medium, for implementing no rake line wagering. In one aspect, a method includes accessing rake line data for an event. The accessed rake line data is converted into a no rake line. The no rake line is published to a wagering platform accessible by multiple members. The wagering platform includes multiple separate wagering groups that each include multiple members. At a pre-specified time relative to a start time of the sports event, locking any wagers made within a particular group based on the no rake line. An outcome of the sporting event is obtained. From among the wagers, winning wagers and losing wagers in the particular group are determined based on the outcome of the sports event and the no rake line. Accounts of the members in the particular group that wagered on the sporting event are updated.