Conversion of non-negotiable credits earned from a game of chance to negotiable funds

Entertainment credits from a game of chance can be identified. The entertainment credits can be associated with an entity with which a user has previously interacted. The previous interactions can earning the entertainment credits, which are non-negotiable credits. Responsive to a user request, a conversion agency can convert a quantity of the entertainment credits to a quantity of negotiable funds, wherein the conversion agency is not directly associated with the entity. The user can be permitted to access the quantity of negotiable funds, wherein the quantity of negotiable funds are able to be applied to user specified purchases, wherein at least a portion of the user specified purchases involve at least one vender that does not honor the non-negotiable credits.

BACKGROUND

1. Field of the Invention

The present invention relates to the field of e-commerce and, more particularly, to the automatic conversion of non-negotiable credits earned from a game of chance to negotiable funds.

2. Description of the Related Art

Entities often reward consumers for utilizing their services with entertainment credits. These non-negotiable credits can often be applied towards products and/or services provided by a granting entity or its affiliates. For example, entertainment credits can be redeemed for prizes offered in a winnings storefront of an entertainment site. The entity offering the reward can be a gambling institution and the entertainment credits can be earnings from wagers while playing a game of chance.

Many problems are inherent to the current techniques for the redemption of entity provided credits. One such problem is the restriction on usage to goods and/or services of the entity. That is, a consumer may have no need for the products or services listed by the entity for which the non-negotiable credits can be redeemed. Further, additional restrictions and limitations can be placed upon the non-negotiable credits that lessen the usefulness of non-negotiable credits from the consumer's perspective.

Another problem encountered by consumers when redeeming non-negotiable credits is time. Once a consumer submits a request to redeem their non-negotiable credits, the consumer must wait for the entity to perform one or more actions required to fulfill their request. These steps often require days or weeks to complete. For instance, consumers participating in online entertainment sites often are required to wait a minimum of three days for their entertainment credits to be redeemed. Redemption delay can be particularly aggravating to e-commerce consumers, who by nature of an e-commerce marketplace expect rapid responses and immediate consumer gratification.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1is a diagram of a system100in which non-negotiable funds136earned from a game of chance122are converted into negotiable funds138in accordance with an embodiment of the inventive arrangements disclosed herein. In one embodiment, multiple interactions130can occur between a person110and a game providing entity120, in which the person110plays a game of chance122. During each interaction130, a wager132can be made. With each successful outcome of the game of chance122, person110can receive entertainment credits134. With each non-successful outcome of the game of chance122, the person110can lose their wager132.

The entertainment credits134are non-negotiable funds136. These funds136(e.g., the entertainment credits134) may not be redeemable on an open market. For example, vender126will not accept118the entertainment credits134for commercial transactions114. A conversion agency124, which is not directly associated116with the game providing entity120can convert the non-negotiable funds136(which can be a quantity of entertainment credits134) into negotiable funds138. This conversion can occur in response to a request112by person110.

Person110can conduct a commercial transaction114with vender126. During the transaction114, the person110can specify a user-selected set of requests115for goods and/or services117of the vender126. The goods and/or services117can cost a quantity of negotiable funds138, which are provided to the vender126. In one embodiment, the negotiable funds138can be provided directly to the vender126by the conversion agency124. In another, the negotiable funds138can be provided by the conversion agency124to person110, who provides these funds138to the vender126.

Numerous embodiments exist for conducting the conversions as described herein, a few of which are shown as embodiments150,160, and170. Embodiment150shows an online embodiment, where a person110can interact (130) with a gambling Web site156to play the game of chance122. The commercial transactions114can be conducted via an e-commerce Web site157. Additionally, the conversion agency124can implement a software based conversion service158, which performs the conversion of the non-negotiable funds136into the negotiable funds138. The Web sites156,157and service158can run within one or more servers154. These servers154can be connected to a client152via a network153, where the client152is a computing device that user110interacts (130and/or114) with.

In one configuration of embodiment150, the conversion service158can be linked to a payment option present in the E-commerce Web site157, which operates in a manner similar to PAYPAL, GOOGLE CHECKOUT, and the like. That is, a payment option can be presented that permits goods/services of vender126to be purchased using (at least in part) funds138converted from entertainment credits134, which were earned from the game of chance122.

Embodiment160shows a portable artifact embodiment, where a person110stores entertainment credits134from the game of chance122upon a portable artifact162, which can be a physical card with a magnetic strip, a RFID storage device, a flash memory card, or other tangible artifact able to store digitally encoded (or even analog encoded) data. Machines164upon which the games of chance122are played can include a reader/writer able to alter content stored on the portable artifact162. Thus, wagers132can be made from value stored on the artifact162and earnings (credits134) can be recorded on the artifact162. The person110can thereafter shop at a storefront of vender126and present a cashier164with the artifact162. A cash register165used by the cashier164can be connected to a network166. The conversion agency124can have a network element168connected to the network166, which converts non-negotiable funds136on the artifact162into a quantity of negotiable funds138needed to complete the commercial transaction114conducted via the register165and cashier164. From the perspective of the vender126, the transaction114conducted via the register165is a “standard” transaction that results in the vender126receiving suitable negotiable funds138for providing the goods/services117to person110.

Embodiment170shows an account transfer embodiment170, where a person110plays a game of chance122. Earnings (134,136) from the game of chance122are recorded within a tangible data store174associated with the game providing entity120. This data store174can include an account175for the person110, which tracks an amount of entertainment credits134, which are non-negotiable funds136, of the person110. Conversion agency124can directly access the account175of data store174and can convert a quantity of credits134into negotiable funds138, which are recorded in a tangible data store176that is not directly associated with entity120. The data store176can include an account177for the person110, which contains an amount of negotiable funds138, of the person110. A person110can conduct commercial transactions114via a machine179, such as a kiosk, an ATM machine, etc., which involve funds of account177changing. In one embodiment, the goods/services117received from person110in embodiment170can include cash (such as from an ATM machine). This cash can be an amount of cash-back received during transaction114, can be the transaction114itself and may involve a transaction fee, which is extracted from account177by machine179.

The embodiments150-170are for illustrative purposes only and are not intended to be (or to be construed as being) exhaustive or comprehensive. For example, any combinations of the embodiments150,160,170are to be considered within scope of the disclosure. Thus, a game of chance122can be conducted via a gambling Web site156(per embodiment150), where a commercial transaction114using the converted entertainment credits134per agency124can be conducted at a storefront, where a cashier164interacts (130) with person110. In another contemplated configuration, the game of chance122can be conducted with a machine172that places credits134in account175(per embodiment170), which are converted and used to buy goods/services117via an e-commerce Web site157(per embodiment150). In another contemplated configuration, entertainment credits earned via machine164and placed on artifact162(per embodiment160), which can be placed in a machine179, such as an ATM (per embodiment170) to extract funds138, which are converted (by agency124) from the credits134stored on artifact162.

In one embodiment, the conversion agency124can be compensated (e.g., charge a processing fee) for converting the non-negotiable funds136to negotiable funds138. This fee can be paid to conversion agency124by the game providing entity120, the person110, and/or by the vender126.

As used herein, a game of chance122can be a game in which an outcome is at least partially determined by random variables rather than strictly by strategy. There can be a level of “skill” or strategy involved in a game of chance122, which can increase a person's110odds of a positive outcome. Common devices used in a game of chance122to add a significant random variable include dice, spinning tops, playing cards, roulette wheels, numbered balls drawn from a container, use of a computer or machine generated random number, and the like. Games of chance can also involve betting on an outcome of sports events and other such competitive games having an uncertain outcome.

Many (but not all) games of chance122are designed so that statistical odds favor the “house” or the game providing entity120. That is, statistically, a large set of interactions130involving wagers132and credits134(assuming for the moment that the wagers132are credit134based wagers) will result in a net gain of credits134to the game providing entity120receiving more credits134(as wagers132) than they provide (as winnings) over a relatively large set of interactions130. Stated differently, a game of chance122can have mathematically-determined odds that ensure the house (e.g., game providing entity120) has at all times an advantage over the players (e.g., person110). This can be expressed more precisely by the notion of expected value, which is uniformly negative (from the player's (person110) perspective). This advantage is called the house edge. In games of chance120such as poker where players (110) play against each other, the house (entity120) takes a commission called the rake.

A game of chance122does not necessarily involve a wager132, though it may. For example, sweepstakes are a type of a game of chance122, which may (e.g., lottery) or may not (e.g., promotional sweepstakes) involve a wager132. A promotional sweepstakes can be a marketing promotion targeted towards both generating enthusiasm and providing incentive reactions among customers by enticing consumers to submit free entries into drawings of chance that are tied to product or service awareness wherein the featured prizes are given away by sponsoring companies.

A game of chance122is defined herein to include any type of gambling game or event. In many jurisdictions, local as well as national, gambling (e.g., games of chance122) are banned, heavily controlled by licensing, and/or are subject to government regulations and restrictions. Under US federal law, gambling is legal in the United States, and states are free to regulate or prohibit the practice. Thus, any event of uncertain outcome that is subject to state (or federal) regulations under a gambling statute is to be considered a game of chance122and within scope of the inventive arrangements (and claims) detailed herein. Because American Indian reservations are considered federally granted lands not subject to state regulation in the same way as other lands, many reservations geographically located in states that prohibit gambling (e.g., games of chance122) are permitted to provide these games of chance122, since the lands are not subject to state gambling laws. Similarly, cruise ships that travel outside state jurisdictions, often permit gambling (considered a game of chance122for purpose of the claims/disclosure) once the ships are located in international waters.

Games of chance122can involve a variety of machines (e.g.,164,172, server154providing Web site156). In many instances regulations (typically under state gambling statutes) can impose that odds in these gaming devices be statistically random, which helps to prevent manufacturers from making some high-payoff results impossible.

Game providing entities120include any entity providing a game of chance122to others (person110), where entertainment credits134can be earned. Game providing entities120can include casinos, cruise ships, States (for lottery, scratch off games, etc.), churches (running bingo games, for example), race tracks, online gambling site providers, slot-machine houses, carnivals, gambling parlors, companies (for promotional sweepstakes), High Schools (for raffles), and the like.

The wager132can be bet in an outcome of winning a game of chance122. The wager132can risk money, previously earned entertainment credits134or something of material value on an event with an uncertain outcome with an intent on winning additional money, credits134, and/or material goods/services. Typically the outcome of a wager132is evident within a short period (such as a duration of the game of chance122). An amount of entertainment credits134earned from winning the game of chance122can vary in direct proportion to an amount of the wager (or the stake, which is placed at risk against the uncertain outcome.) A wager132can have odds associated with it.

Entertainment credits134are non-negotiable funds136that generally have no value outside of an environment (building, Web site, etc.) of the game providing entity120. For example, casinos (one embodiment of entity120) generally utilize casino tokens, chips, or plaques to represent a quantity of entertainment credits134. Online gambling sites156(and electronic gambling devices) often provide an account to a person110, where entertainment credits134are managed within this account in a computer readable storage medium.

Use of entertainment credits134, such as casino tokens, can be more convenient then use of negotiable funds138for many reasons. For example, use of entertainment credits134makes theft and counterfeiting more difficult. Entertainment credits (which when having a physical representation are often a uniform size and weight) can be relatively easy to stack, count, etc. Additionally, studies have proven people (110) gamble more freely (play games of chance122with larger wagers132and frequency), when entertainment credits134than when wagering132with cash or other negotiable funds.

Additionally, use of entertainment credits134, can have legal benefits that can permit entities120to conduct games of chance122, which would be prohibited if negotiable funds138were utilized instead of entertainment credits134. That is, numerous legal statutes and regulations exist that are more restrictive when gambling earnings are in a form of negotiable funds138. For example, the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 prohibits many online gambling activities with negotiable funds138, which are permitted with certain forms of non-negotiable funds136. For example, electronic fund transfers via credit cards or debit cards related to gambling winnings are generally prohibited by US banks. Similarly, wire transfers of negotiable funds138earned through games of chance122are legally prohibited in many instances. Many of these acts explicitly prohibit the transfer of negotiable funds from gambling earnings across state lines

Non-negotiable funds136can include any of a variety of financial instruments that are not legal currency and not governed under article 3 of the Uniform Commercial Code (UCC). For example, non-negotiable funds136can include 10 Us issued by the game providing entity120. In one embodiment, non-negotiable funds136can include secured transactions, which take a security interest on collateral owned by the game providing entity's120assets, which are subject to Article 9 of the UCC. In one embodiment, the non-negotiable funds136can include letters of credit, issued by the game providing entity120.

Negotiable funds138comprise a set of negotiable instruments, which are a specialized type of “contract” for the payment of money that is unconditional and capable of transfer by negotiation. As payment of money is promised later, the instrument itself can be used by the holder in due course frequently as money. Common examples include checks, banknotes (paper money), and commercial paper. Thus, negotiable funds138include currency, and instruments covered by Article 3 and 4 of the Uniform Commercial Code. For a writing to be a negotiable instrument under Article 3,[1] the following requirements must be met: 1) The promise or order to pay must be unconditional; 2) The payment must be a specific sum of money, although interest may be added to the sum; 3) The payment must be made on demand or at a definite time; 4) The instrument must not require the person promising payment to perform any act other than paying the money specified; 5) The instrument must be payable to bearer or to order. Additionally, negotiable funds include commercial paper, letters of credit (governed by Article 5 of the UCC), Bills of lading (governed by Article 7 of the UCC), securities (governed under Article 8 of the UCC), and deeds and other documents. One important consideration for many negotiable instruments (funds138) is that they are payable to a bearer on demand.

The commercial transaction114can be one in which wherein the quantity of negotiable funds138are applied to user (110) specified (via request115, for example) purchase of a good or service117. Stated differently, a commercial transaction can be an economic transaction where person110receives a good or a service from vender126for value. Commercial transactions114can include a sale goods (117) from a storefront, a Web site, a catalog (mail order), over the phone, and the like. Transaction114can also include a payment for a service requested by person110. Payment of the negotiable funds138during the commercial transaction114can occur before, after, or concurrent with the receipt (or shipping) of the goods or service117. A contract (including specifics established by the parties (110and126) as well as legal defaults provided by the UCC or applicable common law/state law) between the vender126and person110established as part of the commercial transaction114can determine when payment (funds138) for the goods/services117is due. In one embodiment, commercial transaction114can include transaction where currency is provided to person110by a vender126(a bank as part of an ATM transaction, for example) for a fee. This currency can be provided as a loan or as a withdrawal from an account of person110, where the account includes the negotiable funds138.

The conversion agency124can be a legal entity that converts non-negotiable funds136(including entertainment credits134) into negotiable funds138. The conversion agency124can lack a direct association116with the game providing entity120. In one embodiment, no legal relationship of enablement of corporate identity (no parent, subsidiary, etc.) relationship can exist between the conversion agency124and entity120. No fiduciary duties under corporate law can exist between agency124and game providing entity120. In one embodiment, agency124can be geographically located outside property owned or leased by the game providing entity120. In another, it can lease space and provide its services from entity120owned/leased land. In one embodiment, the conversion agency124can support multiple different game providing entities120, which can be competitors of each other.

In one embodiment, the conversion agency is not a bank or similar financial institution (and may therefore be outside the guidelines established by UIGEA and other statues and regulations, which impose restrictions on banks). In one embodiment, the conversion agency124may be located in the same jurisdiction as the game providing entity (possibly to avoid legal entanglements/restrictions with operating in multiple or across jurisdictional boundaries) or may be located in a jurisdiction with favorable rules for performing the fund conversions.

FIG. 2is a schematic diagram of system200for converting non-negotiable credits associated with a game providing entity to negotiable funds in accordance with an embodiment of the inventive arrangements disclosed herein. System200can represent a specific embodiment of system100.

In system200, consumer205can interact with a game of chance server218, such as through a gambling Web site156that server218provides. Interactions can occur via a browser212, rich internet interface, or other software executing upon client210. Consumer205can purchase goods/services from an e-commerce Web site157provided by e-commerce server220. These goods/services can be purchased using negotiable funds that a conversion agency server230provides. The conversion agency server230can convert entertainment credits resulting from earnings of a game of chance (non-negotiable funds) into the negotiable funds.

Client210can be any of a variety of devices including, but not limited to, a personal computer, a kiosk, a telephone, a personal data assistant (PDA), a mobile phone, and the like. Client210can include hardware, such as a processor, a memory, and a bus connecting them (as can server218,220,230,240, and/or250). The hardware can execute computer program products (software/firmware) that is stored in a non-transitory storage medium. In one embodiment, client210can operate in a stand-alone fashion. Alternatively, client210can be a device that cooperatively participates in a network of distributed computing devices. Network215can facilitate data exchanges over wireless as well as line-based communication pathways and protocols.

In one embodiment, consumer205and conversion agency server230can interact with associate server250, e-commerce server220, and/or financial institution server240via network215. Conversion agency server230includes user account data store235in which consumer205is a member. Associate server250includes customer data store255in which consumer205is a member. Financial institution server240includes account data store242. Account data store242includes conversion agency account244corresponding to conversion agency230.

Consumer205can earn non-negotiable credits from games of chance provided by server218. These earnings (entertainment credits) can be managed by associate server250. The quantity of these non-negotiable credits can be saved in customer data store255. Consumer205can use conversion agency server230to convert the non-negotiable credits from associate server250into negotiable funds provided to the e-commerce server220or financial institution240. In one embodiment, conversion agency230can maintain multiple accounts for the consumer205. These different accounts can be associated with different game providing entities, and with different types of non-negotiable credits.

For example, consumer205can earns 500 credits from participating in an online game of chance hosted by server218. Consumer205can choose to use conversion agency230to convert any or all of these credits to a monetary equivalent. Conversion agency230withdraws the necessary amount from conversion agency account244contained within the account data store242of financial institution240and transfers it to an account specified by consumer205. In another example, consumer205uses conversion agency230to complete a purchase at e-commerce server220. Again, conversion agency230withdraws the necessary amount from conversion agency account244contained within the account data store242of financial institution240and transfers it to the account of e-commerce server220.

E-commerce server220can provide a Web site that supports online purchases of goods or services. In one embodiment, e-commerce server220can include a distinct payment option for conversion agency230. This distinct payment option could process the conversion of credits through their Web site. Alternatively, the distinct payment option could launch an application to process the conversion of credit that is separate from their Web site. In another embodiment, associate server250can act as e-commerce server220. In one embodiment, e-commerce server220can provide a software service (or can execute a software module) that permits the sale of goods or services, without necessarily providing a Web site. Further, e-commerce server220can be directly replaced with back-end system of a storefront server, serving the same relative functions as described in system200of facilitating the sales of goods/services.

Financial institution server240can be any of a variety of entities including, but not limited to, a bank, a credit card company, an investment firm, and the like. In one embodiment, financial institution server240can reside in the same country as consumer205associate server250, and/or game of chance server218. In another embodiment, financial institution server240can reside in a country other than that of consumer205and/or associate server250.

As shown herein, data stores255,235,242,176,174, and the like can be physically implemented within any type of hardware including, but not limited to, a magnetic disk, an optical disk, a semiconductor memory, a digitally encoded plastic memory, a holographic memory, or any other recording medium. Each of the data stores255,235,242,176,174can be stand-alone storage units as well as a storage unit formed from a plurality of physical devices, which may be remotely located from one another. Additionally, information can be stored within each data store255,235,242,176,174in a variety of manners. For example, information can be stored within a database structure or can be stored within one or more files of a file storage system, where each file may or may not be indexed for information searching purposes.

The network215can include any hardware/software/firmware necessary to convey digital content encoded within carrier waves. Content can be contained within analog or digital signals and conveyed through data or voice channels and can be conveyed over a personal area network (PAN), a local area network (LAN), or a wide area network (WAN). The network215can include local components and data pathways necessary for communications to be exchanged among computing device components and between integrated device components and peripheral devices. The network215can also include network equipment, such as routers, data lines, hubs, and intermediary servers which together form a packet-based network, such as the Internet or an intranet. The network215can further include circuit-based communication components and mobile communication components, such as telephony switches, modems, cellular communication towers, and the like. The network215can include line based and/or wireless communication pathways.

FIG. 3is a schematic diagram of successive GUIs that illustrate the Web based conversion of non-negotiable credits associated with an entity to entity independent funds in accordance with an embodiment of the inventive arrangements disclosed herein.

GUI302shows an interface from a gambling Web site. A quantity of entertainment credits are earned on this site, which can be later converted by a conversion agency for use in buying/selling items from a vender, who does not accept the entertainment credits.

GUI310can be a checkout window from an e-commerce site. GUI310includes payment button315, which represents a payment option that includes the conversion of non-negotiable credits to purchase the items in the shopping cart. Selection of payment button315by a user can produce GUI320.

GUI320can be a display window from a conversion agency. GUI320includes display box322and button325. GUI320can be rendered by any of a variety of means including, but not limited to, a Web browser, a JAVA applet, a PERL script, and the like. In one embodiment, GUI320can be contained within the e-commerce site. GUI320can display the balance of non-negotiable, entertainment credits earned from one or more game providing entities. GUI320contains a means by which the user selects the type of non-negotiable credits to convert including, but not limited to, a set of radio buttons, a set of checkboxes, a highlighting mechanism, and the like. Display box322can display the monetary value of the selected non-negotiable credits. The value displayed in display box322can be based on preset conversion factors. Button325can represent the initiation of the process by which the selected non-negotiable credits are converted to negotiable funds. Selection of button325by a user can produce GUI330.

GUI330can be a display window from a conversion agency. GUI330includes yes button332and cancel button333. GUI330can be rendered by any of a variety of means including, but not limited to, a Web browser, a JAVA applet, a PERL script, and the like. In one embodiment, GUI330can be contained within the e-commerce site. GUI330can display a summary message of the transaction initiated by GUI320. GUI330can include a means to continue the transaction, yes button332, and a means to cancel the transaction, cancel button333. Selection of cancel button333by a user cancels the transaction and can return the user to GUI320. Selection of yes button332by a user completes the transaction initiated in GUI320and can produce GUI340.

GUI340can be a display window from the same said e-commerce site. GUI340can contain a message acknowledging the successful conversion of the user's non-negotiable credits into negotiable funds for the purchase of the items in the shopping cart.

FIG. 4is a flow chart of a method400for the Web based conversion of non-negotiable, entertainment credits to negotiable funds system in accordance with an embodiment of the inventive arrangements disclosed herein.

Method400can begin in step402, where a customer earns entertainment credits through a game of chance. In step405, the consumer can logs onto a rewards Web site. In step410, the rewards Web site utilizes the user information provided in step405to access the consumer's account information and display the amount of non-negotiable credits in the consumer's account. The consumer elects to redeem some quantity of non-negotiable credits in step415. If supported by the rewards Web site, step420can occur in which the consumer can select the form of negotiable funds to convert the non-negotiable credits. In step425, a ratio is determined for the conversion of the non-negotiable credits to the selected type of negotiable funds. This ratio can be determined by any of a variety of means including, but not limited to, an algorithm internal to the rewards Web site, an algorithm contained in a system that is remote and/or independent of the rewards Web site, and the like. An electronic commerce transaction is initiated in step430to establish the converted amount of negotiable funds in a user account. The quantity of converted non-negotiable credits is subtracted from the user's account in step435. In step440, the rewards Web site presents the consumer with an access means for the negotiable funds. Lastly, the consumer terminates the session by logging off the rewards Web site in step445.