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.

1 . A method for purchasing and trading wagering shares representing one of two possible outcomes of an event before and during the event, the method comprising:
 prior to a start of the event, 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;   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; and   facilitating purchasing, by bettors, of the wagering shares prior to the start of the event and facilitating trading, between the bettors, of the wagering shares prior to the start of the event and during each of the stoppages of the event.   
     
     
         2 . A method according to  claim 1 , wherein the adjusting prior to the start of the event, the adjusting during each of the one or more stoppages of the event, the facilitating of purchasing, and the facilitating of trading are carried out by an exchange. 
     
     
         3 . A method according to  claim 2 , wherein the exchange provides infinite liquidity by purchasing all wagering shares that are unsold in trading between the bettors during each of the stoppages of the event at a price lower than the adjusted price. 
     
     
         4 . A method according to  claim 3 , wherein the exchange provides infinite liquidity by selling additional wagering shares to bettors that are not fulfilled in trading between the bettors during each of the stoppages of the event at a price higher than the adjusted price. 
     
     
         5 . A method according to  claim 4 , wherein the amount that a wagering share is raised and/or lowered by the exchange is determined by a market maker based on a suggested price of the wagering share. 
     
     
         6 . A method according to  claim 4 , wherein the amount that a wagering share is raised and/or lowered by the exchange is variable according to the currently adjusted price of the wagering share. 
     
     
         7 . A exchange that facilitates that trading of wagering shares representing one of two possible outcomes of an event before and during the event, the exchange comprising:
 means for 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 prior to a start of the event;   means for 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 during each of one or more stoppages of the event; and   means for facilitating purchasing of the wagering shares prior to the start of the event and for facilitating trading of the wagering shares prior to the start of the event and during each of the stoppages of the event.