High-Speed Pari-Mutuel Wagering Network with Dynamic Odds Recalculation
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Solution Overview
Problem
Conventional pari-mutuel wagering systems experience delays in bet transmission and processing, leading to potential fraudulent practices and difficulties in tracking and auditing bets, as well as inefficient settlement of accounts among wagering facilities.
Innovation Solution
A high-speed wagering network that allows real-time transmission and processing of bets between interconnected wagering facilities via a network, with a clearinghouse capturing audit information and recalculating odds dynamically based on received bets, ensuring bets are not placed after the event's commencement and facilitating quick settlement of accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If bets are transmitted and processed in real-time via a high-speed network, then the speed of bet processing and odds calculation is improved, but the system complexity and infrastructure requirements increase
Solution Approach 1:
The system divides the wagering network into multiple interconnected facilities (host and non-host), with each facility independently capable of processing bets. This segmentation allows parallel processing across multiple nodes, increasing overall system speed while distributing complexity across separate modular units rather than requiring a single complex centralized system.
Solution Approach 2:
The patent introduces a clearinghouse as an intermediary component that receives audit information from the network and facilitates settlement between facilities. This intermediary handles the complex accounting and reconciliation tasks, allowing the main betting network to focus on high-speed transaction processing while the clearinghouse manages the computational complexity of settlements.
2Reliability
If individual bets are processed and transmitted separately in real-time, then the reliability and transparency of the system is improved, but the processing time and computational resources increase
Solution Approach 1:
The system pre-establishes communication channels and processing protocols between facilities before betting begins. The clearinghouse is pre-configured with settlement rules and audit requirements. This preliminary setup allows individual bets to be processed immediately upon receipt without delays for protocol negotiation or channel establishment, maintaining both reliability and speed.
Solution Approach 2:
The high-speed network maintains continuous operation for bet acceptance and transmission without interruption. The system processes bets in real-time as they arrive, with the clearinghouse continuously receiving audit information and updating settlements. This continuous processing eliminates idle time between bets while maintaining the integrity of individual bet tracking through persistent network connections.
3Loss of information
If a clearinghouse captures audit information from the network, then the ability to track and audit bets is improved, but the network traffic and data processing load increase
Solution Approach 1:
The clearinghouse extracts only the necessary audit information (bet details, timestamps, facility identifiers) from the network traffic rather than processing or transmitting complete data sets. This selective extraction captures all information needed for tracking and settlement while minimizing the bandwidth consumption and processing load associated with handling unnecessary data.
Solution Approach 2:
The system creates simplified copies of bet information for audit purposes rather than transmitting full transaction records. The clearinghouse receives condensed audit data that contains essential tracking information in a compact format, reducing network traffic while maintaining the ability to reconstruct complete audit trails when needed.
4Object-affected harmful factors
If bets are processed individually rather than in batches, then the transparency and fraud prevention capability is improved, but the processing overhead and system resource consumption increase
Solution Approach 1:
The system provides immediate feedback to bettors and facilities when bets are received and processed. Each bet generates real-time updates including odds recalculations and settlement information. This immediate feedback loop ensures transparency by confirming bet acceptance and providing visible proof of processing, while the automated nature of the feedback reduces manual processing overhead despite the increased frequency of communications.
Solution Approach 2:
The clearinghouse automatically performs settlement calculations and account reconciliations without manual intervention. The system self-updates odds based on received bets and self-generates settlement data for facilities. This automation reduces the processing overhead that would otherwise be required for manual batch processing, making individual bet processing feasible without proportionally increasing operational complexity.
Data Source
AI summary
This disclosure provides a wagering system associated with a first wagering facility, the system communicably coupled with a network and including a memory operable to store betting odds on a plurality of wagering events hosted by the first wagering facility. The system further includes a processor coupled to the memory and operable to receive a first bet on a particular event via the network, the particular event comprising at least one of the wagering events hosted by the first wagering facility. If a second bet is received within a predetermined period of time after the first bet is received, then the processor recalculates the betting odds on the particular event based upon both of the first bet and the second bet. If a second bet is not received within a predetermined period of time after the first bet is received, then the processor recalculates the betting odds on the particular event based upon the first bet.