Browse Prior Art Database

Escrow Secured Internet Gambling Payment System

IP.com Disclosure Number: IPCOM000004518D
Publication Date: 2001-Jan-05
Document File: 2 page(s) / 11K

Publishing Venue

The IP.com Prior Art Database

Abstract

The present invention is an escrow payment secured internet gambling system. In the present system no bets can be placed unless both the vendor and the customer have covered the bet in the account of a third party escrow company. Upon realization of the betting event, the participating parties balances in the escrow account are updated to reflect the event outcome.

This text was extracted from a RTF document.
This is the abbreviated version, containing approximately 100% of the total text.

Escrow Secured Internet Gambling Payment System

Gambling over the internet is a quick and convenient means of placing a bet. Many gamblers however are hesitant to gamble online without sufficient assurance that they will be able to collect their payout. What is need is a way to secure the payment of internet gambling bets and payouts.

The present invention is an escrow payment secured internet gambling system. In the present system no bets can be placed unless both the vendor and the customer have covered the bet in the account of a third party escrow company. Upon realization of the betting event, the participating parties balances in the escrow account are updated to reflect the event outcome.

Figure 1 Escrow secured internet gambling payment system

In Figure 1 shows an escrow secured internet gambling payment system 100. System 100 operates as follows. A customer enters a bet on vendor website 110. The entered bet is transmitted from vendor website 110 to escrow C.P.U. 120 for approval of transaction. Escrow C.P.U. 120 accesses outstanding transactions database 140 and stores outstanding transactions. Escrow C.P.U. 120 then calculates the maximum required funds necessary to cover all outstanding bets for vendor and customer including current transaction. These amounts constitute the minimum coverage equity that the vendor and customer can maintain in escrow account 130. Escrow C.P.U. 120 retrieves from escrow account 130 the funds the vendor and customer have in escrow account 130. If these funds are at least as great as the minimum coverage equity the transaction is approved, if the funds of either party do not meet the minimum coverage equity, the transaction is not approved. Escrow C.P.U. 130 then transmits to vendor web page if transaction has been approved. Escrow C.P.U. 120 then updates outstanding transaction database 140 to include current transaction. C.P.U. 120 continuously retrieves and stores event outcomes from outcome database 150. Escrow C.P.U. 120 matches any outstanding transactions to event outcomes and accordingly updates outstanding transaction database 140 and account balances for the vendor and customer in escrow database 130.