Pool seeding for parimutuel betting operations

Abstract

A method of conducting a parimutuel betting operation that reduces the volatility of the posted odds on the betting choices while the betting line is open by placing one or more seed bets in the betting line. A pool seeder (preferably a trained odds maker) uses a pool seeding screen to control the flow of house money into the pools associated with the betting choices. The pool seeding screen allows the pool seeder to adjust the estimates of the true probabilities of the betting choices in real time. The pool seeder may also use a software expert system based on historical data to help set the estimates of the true probabilities. The house money flows into the pools in a continuous stream at a rate determined by the present settings on the pool seeding screen.

1 . A method of providing a betting game between a plurality of players, wherein the betting game is based on actions occurring during a live event and the winning payoffs of said betting game are in parimutuel style, wherein said method comprises:
 a) providing one or more selectable betting events to the players while the live event is in progress, wherein each betting event is based on actions occurring during said live event;   b) opening one or more betting lines for each selected betting event before the start or after the start of the live event but before a termination event occurs with regard to the betting event, each betting line comprising two or more betting choices corresponding to a finite set of possible outcomes of the selected betting event;   c) allowing the players an amount of time within which to selectively bet on the betting lines;   d) placing one or more seed bets in at least one selected betting line, wherein relative amounts of total bets placed on each choice of the selected betting line are stabilized by the seed bets;   e) closing the betting lines after an interval of time such that no further bets may be placed on the line and the odds affecting the payoffs on said line are fixed;   f) monitoring the live event until a termination event occurs with regard to the selected betting event;   g) terminating the betting event upon occurrence of the termination event; and   h) upon termination of the selected betting event, paying off winners of the betting lines in parimutuel style, according to odds fixed at the time each betting line is closed.   
     
     
         2 . The method of  claim 1  wherein placing one or more seed bets comprises the steps of:
 a) determining a total seed bet amount to be placed on the selected betting line at that time; 
 b) estimating a true probability of each choice occurring in the selected betting line, wherein the true probabilities are estimated at the time the seed bets are placed; and 
 c) determining an amount for each seed bet to be placed on each choice, wherein the ratio of an individual seed bet amount placed on a selected choice to the total seed bet amount is equal to or approximately equal to the true probability for that selected choice. 
 
     
     
         3 . The method of  claim 2  further comprising estimating the true probabilities at different points during the live event. 
     
     
         4 . The method of  claim 3  further comprising continuously placing seed bets into in at least one selected betting line in time-varying ratios. 
     
     
         5 . The method of  claim 1  further comprising using a computer system to estimate the true probabilities. 
     
     
         6 . The method of  claim 5  wherein said computer system utilizes historical data relevant to said live event to estimate the true probabilities. 
     
     
         7 . The method of  claim 1  wherein seed bets are placed on multiple betting lines. 
     
     
         8 . The method of  claim 1  further comprising placing a second set of seed bets on the selected betting line at later point of time. 
     
     
         9 . The method of  claim 1  wherein seed bets are placed when the betting lines are open for the purpose of setting initial odds. 
     
     
         10 . The method of  claim 1  wherein said one or more betting events are provided and selected through a computer network. 
     
     
         11 . The method of  claim 1 , wherein each of the players can place multiple bets on any open betting line. 
     
     
         12 . The method of  claim 1  further comprising the step of allocating betting tokens to each of the players prior to or during the commencement of the live event, wherein the players bet on possible outcomes of said selectable betting events using one or more betting tokens. 
     
     
         13 . The method of  claim 12 , wherein said betting tokens are electronic units maintained on a processor. 
     
     
         14 . The method of  claim 1  further comprising displaying to the players; amounts bet on each betting choice, seed bet amounts placed on each betting choice, and odds affecting payoff amounts for each betting line opened in the course of said live event. 
     
     
         15 . A system for providing a parimutuel betting game between a plurality of players, wherein said betting game is based on actions occurring during a live event and the winning payoffs of said betting game are in parimutuel style, where said system is under the control of an administrator and comprises:
 a) a host processor programmed for analyzing and processing input data, and outputting data and information relevant to the parimutuel game;   said host processor programmed to:
 1) provide one or more selectable betting events to the players while the live event is in progress, wherein each betting event is based on actions occurring during said live event; 
 2) open one or more betting lines for each selected betting event before the start or after the start of the live event but before a termination event occurs with regard to the betting event, each betting line comprising two or more betting choices corresponding to a finite set of possible outcomes of the selected betting event; 
 3) place one or more seed bets in at least one selected betting line, wherein relative amounts of total bets placed on each choice of the selected betting line are stabilized by the seed bets; 
 4) close the betting lines after an interval of time such that no further bets may be placed on the line and the odds affecting the payoffs on said line are fixed; 
 5) terminate said betting event upon occurrence of a termination event with regard to said selected betting event; and 
 6) upon termination of said selected betting event, pay winners of each betting line in said cycle, independent of other betting lines in parimutuel style; 
   b) a plurality of player processors interactively connected to said host processor, said player processor able to send and receive data to said host processor;   c) a display and interface device operatively associated with each said player processor, said display and interface device able to display data received from said player processor, and able to send betting instructions entered by the player to said host processor through said player processor;   d) an administrative processor interactively connected to said host processor, said administrative processor able to send commands to said host processor; and   e) an administrative display and interface device operatively associated with said administrative processor, said administrative display and interface device able to display data received from said host processor, and able to send commands entered by the administrator to said host processor;   
       wherein said commands control when said host processor opens and closes said betting line, and when said host processor terminates said betting line. 
     
     
         16 . The system of  claim 15  further comprising a pool seeder, wherein said pool seeder:
 a) determines a total seed bet amount to be placed on the selected betting line at that time; 
 b) estimates a true probability of each choice occurring in the selected betting line, wherein the true probabilities are estimated at the time the seed bets are placed; and 
 c) determines an amount for each seed bet to be placed on each choice, wherein the ratio of an individual seed bet amount placed on a selected choice to the total seed bet amount is equal to or approximately equal to the true probability for that selected choice. 
 
     
     
         17 . The system of  claim 16  further comprising a software system assist the estimation of the true probabilities. 
     
     
         18 . The system of  claim 17  wherein said software system utilizes historical data relevant to said live event. 
     
     
         19 . The system of  claim 16  wherein said pool seeder estimates the true probabilities at different points during the live event. 
     
     
         20 . The system of  claim 16  wherein the pool seeder continuously places seed bets into in at least one selected betting line in time-varying ratios and rates. 
     
     
         21 . The system of  claim 20  further comprising a pool seeding screen, wherein an operator is able to adjust said time-varying ratios and rates through said pool seeding screen. 
     
     
         22 . The system of  claim 21  wherein said pool seeding screen ensures that the estimated true probabilities for any selected betting line always add up to one.