Patent Publication Number: US-2006019736-A1

Title: Method and system for subscription lottery play

Description:
RELATED APPLICATION  
      This application is based on and claims the benefit of U.S. Provisional Patent Application Ser. No. 60/591,384 filed on Jul. 26, 2004, the disclosure of which is incorporated herein in its entirety by this reference. 
    
    
     COPYRIGHT NOTIFICATION  
      Portions of this patent application include materials that are subject to copyright protection. The copyright owner has no objection to the facsimile reproduction by anyone of the patent document itself, or of the patent application as it appears in the files of the United States Patent and Trademark Office, but otherwise reserves all copyright rights whatsoever in such included copyrighted materials.  
     BACKGROUND  
      This invention pertains generally to systems and methods for selling lottery tickets. More particularly, it relates to a method and system for selling tickets for state lotteries, collecting payments, paying winnings and providing players with more options in order to better attract, service and retain lottery players.  
      Many state and provincial lotteries at one time or another have tried to attract, service and retain lottery players by providing subscription play and advanced play purchases at lottery terminals. Subscription play services are typically closed-ended, meaning they involve signing up with a state lottery to receive continuous lottery play for a fixed period of time. With these types of subscriptions, the ownership of the tickets are known by the state. In addition, since the subscription contains all required ownership information, the tickets are monitored by the state for winnings and any winnings are paid to the subscriber, so the subscriber does not have to concern themselves with losing tickets or missing out on winnings. Advanced play services involve the purchase of a lottery ticket that spans many drawings. With these tickets it is the obligation of the purchaser not to lose the ticket and to check their own winnings. Some have been moderately successful, but lotteries have suffered from several major drawbacks. First, in most cases it has been costly to attract, service and retain subscription players, even after discounting the overall price. In most instances this discount has been minimal (e.g., about 4%), but subscription play has not produced the overall sales gain for which the lotteries had been hoping. Second, historical and current subscription and advanced play programs restrict the flexibility of the lottery operator to make changes to the lottery game for which subscriptions have been sold, restrict changes by the player, limit the method of paying for tickets, limit the options for how winnings are to be handled and limit a player&#39;s ownership options. In addition, state lotteries have never offered open-ended subscription play, i.e., state lotteries have not offered a form of subscription wherein no fixed time period has been established for the subscription, thereby allowing the player to place an order for a continuous purchase of tickets until cancelled by the player. In some instances, there may be a revalidation of the order required in order to have the ticket purchases continue. This form of subscription also allows the player to make changes at will so that the tickets sold to the player by the lottery would reflect the player&#39;s most recent preferences.  
      There is a need, therefore, for an improved method and system to enable lotteries to attract, service and retain lottery players by providing lottery players with more options plus greater convenience and flexibility while simultaneously providing the lottery operator with the flexibility to manage these expanded play features and to be able to easily and quickly change lottery games for which subscriptions have been sold. It is an object and feature of the present invention to provide such a system and method.  
      It is another object and feature of the present invention to provide such a method and system that is more profitable for the lottery operator than previous subscription methods and systems.  
      It is yet another object and feature of the present invention to provide such a method and system that includes features to assure security, control and integrity of the method and system.  
      Additional objects and advantages of the invention will be set forth in the description that follows, and in part will be apparent from the description, or may be learned by practice of the invention. The objects and advantages of the invention may be realized and obtained by means of the methods and apparatus pointed out in the appended claims.  
     SUMMARY  
      To achieve the foregoing objects, and in accordance with the purposes of the invention as embodied and broadly described in this document, there is provided a method and system for providing subscription services for a lottery operated by a state lottery operator. The method includes the steps of: receiving a subscription application from a lottery player, wherein the subscription application includes player information and information for a subscription order to purchase at least one lottery ticket for at least one game selection over a plurality of subscription drawings, unless sooner terminated; receiving instructions for which lottery ticket numbers to purchase for the subscription order; storing on a subscription computer system subscription information including the information from the subscription application, the information for the subscription order and the instructions for which lottery ticket numbers to purchase; and collecting funds for paying for one or more tickets to be purchased from the state lottery operator based on the subscription order. The collected funds can be in an amount less than the amount required to purchase all of the lottery tickets for the plurality of subscription drawings. The subscription application can include a paper transmittal form and wherein the lottery player submits the paper transmittal form with one or more game play slips identifying one or more lottery tickets to be purchased by the lottery player. The subscription order information can include one or more selected jackpot levels for one or more games and the purchase of additional tickets under the subscription order for a given game of the one or more games can be conditioned upon reaching the selected game jackpot levels for the given game. Funds can be collected by maintaining a reserve account for the lottery player and charging the reserve account to pay for tickets or by using an automated payment method, such as a credit or debit charge or an ACH transfer. The lottery player can be placed into one or more of the lottery pools defined in the subscription computer system. The subscription application can be for an open-ended subscription.  
      According to other aspects of the invention, the method can include the step of using the stored subscription information to submit to the state lottery computer system information to purchase one or more lottery tickets for less than the plurality of the subscription drawings included in the subscription order. The method can include charging the lottery player one or more fees for services associated with the subscription application. The method also can include the step of requiring the lottery player to agree to procedures to be used in the event that the lottery operator makes changes to the lottery game before all of the plurality of subscription drawings are completed. Moreover, the method can include the step of posting the lottery ticket numbers and highlighting each of the lottery ticket numbers that match the numbers drawn by the state lottery operator whether or not the lottery ticket numbers are included in winning number combinations. The method also can include the step of only paying winnings to the lottery player when the lottery player&#39;s unpaid winnings are at or above a predefined level.  
      A system according to the invention includes a computer system programmed to perform the method described above.  
      The method and system of the invention make it possible to track, act and revise a player&#39;s choices that have been put in play for up to a year or more in advance when there are changes in the lottery game. This is done through specialized system controlled review of player accounts based upon the lottery game in use at the time of initiation of play and forward comparison of intended plays against lottery changes. It also involves controls and customer service acting in a pro-active manner to contact players and resolve the play issues promptly. The system also accommodates game changes as they become identified and planned by the participating lottery operator. Most game changes are planned at least ten weeks in advance of the change. This time is more than adequate to contact the game subscription players, allow them to make new choices in numbers (if needed), and be prepared for the first drawing of the new game matrix or play concept. The lottery and the online vendor do not need to worry about these subscription plays when considering any game change or addition. From the player&#39;s point of view, the subscription service provider can handle all required action through player communication, personnel, software design and pre-defined automated action rules for invalid play sets when the Lottery has not heard back from the players prior to the first drawing of the new game or matrix. From the point of view of the lottery and online vendor no change is necessary in their systems because under the current invention, the numbers to be played on behalf of the player are not submitted to the lottery and online vendor until approximately one day prior to the drawing.  
      Also, the method and system of the invention facilitate a robust customer club service program that actively works to entertain, support and create fun activities for all subscription players. The club service provides an internet account review, quarterly newsletter discussing numerous subjects about the lottery, game services, play options, contests to enter for free, and promoting other game alternatives. The telephone service does not rely on any automated service menu requiring players to “touch one for a new service”, etc. When a player calls they get a “real person” willing to respond to their questions on any issue regarding subscription club play, their accounts, or game options and other games offered by the Lottery. Mr. Amada has found, through nine years of club service operations, that players like getting someone in person on the phone rather than a recorded voice with a series of “menu options” that can be confusing and frustrating to navigate through. The only time an operator is not “on hand” is during non-office hours and on weekends.  
      In addition, the method and system of the invention also allow players to change their subscription plays and will provide more opportunities for players to win a jackpot when jackpots are higher with pre-defined additional individual ticket purchases and additional tickets through lottery pools. Signing up for subscriptions is also more convenient and affordable for players since the method and system can accommodate monthly payments. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS AND APPENDIX  
      The accompanying drawings, which are incorporated in and constitute a part of the specification, illustrate the presently preferred embodiments of the invention and, together with the general description given above and the detailed description of the preferred methods and embodiments given below, serve to explain the principles of the invention.  
       FIG. 1  is a functional diagram depicting a method for providing subscription lottery play according to the present invention.  
       FIG. 2A  shows an example of one side of a preferred subscription application form according to the invention.  
       FIG. 2B  shows an example of a second side of the subscription application form of  FIG. 2A .  
       FIG. 3  is a functional block diagram of a preferred subscription computer system and a network for practicing the present invention.  
       FIG. 4A  shows an exemplary display of a game code screen for inputting information about a lottery game for which a player can be subscribed using the system of  FIG. 3 , with the display showing a tab selection for inputting general information about a selected game.  
       FIG. 4B  shows an exemplary display of the game code screen of  FIG. 4A , with the display showing a tab selection for entering information about awards paid by the selected lottery game.  
       FIG. 5A  shows an exemplary display of a subscription settings screen for inputting default settings into the system for various fees and miscellaneous time periods used by the system, with the display showing a tab selection for inputting general settings applicable to subscriptions.  
       FIG. 5B  shows an exemplary display of the subscription settings screen with the display showing a tab selection for inputting subscription time periods, accompanying service charges, and discounts for automatic renewal subscriptions to be stored in the system.  
       FIG. 5C  shows an exemplary display of the subscription settings screen for inputting jackpot levels to be stored in the system for triggering advanced play ticket sales.  
       FIG. 5D  shows an exemplary display of the subscription settings screen for inputting pool sizes to be stored in the system.  
       FIG. 6  shows an exemplary display of a transaction code screen for providing audit capability and conformity within the system.  
       FIG. 7A  shows an exemplary display of a players screen for entering information about a player into the system and viewing stored information about the player, with the display showing a demographics tab selected for entering demographic information provided by a player in his or her subscription application.  
       FIG. 7B  shows an exemplary display of a screen for displaying payment type information for debit and credit card charges and ACH deductions from checking accounts, when an operator selects the payment type tab shown in  FIG. 7B . The same payment screen is available from screen  7 A.  
       FIG. 8  shows an exemplary display of the players screen prompting the user to select the type of subscription invoice being created after the operator selects the new subscription button for creating in the system a subscription for the player displayed in  FIG. 7A .  
       FIG. 9A  shows an exemplary display of a subscription invoice screen for creating the subscription invoice prompted in  FIG. 8 , showing sections for inputting and viewing player choices (games, time periods, personal numbers versus Quick Pick numbers, and the like), invoice information and payment information and also showing the tab selections for entering other information about the game plays that the subscribing player has chosen.  
       FIG. 9B  shows the exemplary display of the subscription invoice screen and a display of a monthly payment schedule in response to the operator&#39;s selection of the payments button on the subscription invoice screen.  
       FIG. 10  shows an exemplary display of the subscription invoice screen showing the tab selection for entering information about money management for the subscribing player, including reserve account information.  
       FIG. 11  shows an exemplary display of the subscription invoice screen showing the tab selection for entering information about individual advance plays for the subscribing player.  
       FIG. 12  shows an exemplary display of the subscription invoice screen showing the tab selection for entering information about advance plays for the subscribing player that are pooled with advance plays of other players.  
       FIG. 13  shows an exemplary display of the players screen showing the subscription invoice of  FIGS. 9-12  pending for the subscribing player after the subscription has been saved in the system and before it is printed.  
       FIG. 14  shows the display of  FIG. 13  with the display showing the pending subscription invoice selected and after the new subscription button has been selected, prompting the operator for input to replace the invoice.  
       FIG. 15  shows an exemplary display of the players screen with the display showing the account balances tab selection for displaying the selected player&#39;s financial transactions for their subscription account.  
       FIGS. 16A and 16B  show an exemplary display of a pre-printed confirmation certificate for confirming a player&#39;s subscription according to the invention.  
       FIG. 17  shows an exemplary input screen for maintaining a reserve account according to the present invention.  
       FIG. 18  shows an exemplary website posting of play results for a lottery player according to the present invention.  
    
    
     DESCRIPTION  
      In the following description, methods and embodiments of the invention has been shown and described simply by way of illustration of the best mode contemplated by the inventor of carrying out the invention. As will be realized, the invention is capable of modification in various respects, all without departing from the invention. Accordingly, the drawings and description are to be regarded as illustrative in nature, and not restrictive.  
      Referring to  FIG. 1 , a functional diagram of a method for providing subscription lottery play according to the present invention is shown. According to a preferred method, a subscription service operator  10  interacts with a player  12  seeking to participate in lottery play and with a lottery operator  14 . It will be understood that the player can include a person who is a prospective lottery player as well as a person who has previously participated in lottery play. According to the exemplary method of  FIG. 1 , the lottery operator  14  can be a lottery operated by a governmental entity, such as a state lottery, or a representative of a state. One example of a lottery operator that is a representative of a state is the Georgia Lottery Corporation, which is referred to as a quasi-state agency and which runs the lottery for the state of Georgia. The lottery operator  14  also can include a third-party provider, such as an online provider that operates the on-line lottery games for a state or other governmental entity. According to the exemplary method of  FIG. 1 , the subscription service operator  10  operates a subscription computer system  16 , which stores and processes information regarding subscription lottery games, registered lottery players, player subscriptions and player payments, as described below. The player  12  can communicate with the subscription service operator  10  by mail, by a lottery terminal  11  or a user computer  24  coupled to the subscription computer system  16  via a computer network such as the Internet  30 , or by telephone or other suitable communications means.  
      According to one novel aspect of the invention, the lottery player  12  can register for the subscription service using a subscription application form  100  along with standard “game play slips”  110  to indicate the games and numbers to which the person wishes to subscribe.  FIGS. 2A and 2  B show an example of a preferred subscription application form  100 , which also serves as a transmittal form for the player&#39;s game choices. Previously, no state lottery has used a transmittal form to accompany the existing play slips. The application form  100  includes sections for providing player information, payment option information, and subscription information. The subscription information includes game selection, a subscription time period, a number of drawings, and a number of tickets desired for each drawing night. The subscription application form  100  may include additional information, such as a one-time setup fee that can be included in the total payment. The player  12  can also elect to choose monthly payments, in which case he or she would include the necessary financial information about their checking account, or bankcard if that form of payment is allowed. Following the instructions on the form, the player enters the total cost of the selected games and an applicable service fee and sends the completed application form to the lottery operator  14  along with the player&#39;s completed game play slips  110  for the player&#39;s selected numbers or quick picks. The form is easy to understand and complete. The player utilizes existing game play slips  110  for choosing their subscription numbers and quick picks.  
      According to another aspect of the invention, a player  12  can optionally register for subscription play online, such as via the Internet  30 , using a credit card, debit card or direct charge to the person&#39;s checking account via the ACH system. In this way, the system can be used to sell subscription services online by accepting a player&#39;s application submission, numbers to be played and payment information online, which can be used to automatically populate the database  102  described below. Until the present invention there has not been any method or system in place by which sellers of state lottery tickets (only state governments can legally sell such lottery tickets) have been able to use the Internet to sell tickets in the manner of the present invention.  
      Referring again to  FIG. 1 , the player  12  can mail or submit his or her subscription application form  100 , lottery game play slips  110  and payment (or payment information) directly to the subscription services operator (step  18 ). Alternatively, the player  12  can mail or submit these items to the lottery operator  14  (step  18 ). If the application form  100 , play slips  110  and/or payment are mailed or submitted to the lottery operator  14 , the subscription service operator  110  can collect the information from the lottery operator  14  (step  20 ).  
      When the subscription service operator  10  receives the subscriber registration information, the operator enters this information into the subscription computer system  16  (step  22 ). The information from the registration form  100  and numbers on the game play slips  110  can be entered manually or scanned. The subscription computer system  16  then validates the information. It confirms the integrity of subscriber numbers and start date requests and confirms that all numbers entered the database meet the criteria of the game design as part of the entry process. The system also sets the start date depending on: (a) the system&#39;s pre-defined start date for subscriptions entered on that day; (b) any special start date requests by the subscriber; (c) and any built in delay days that are a function of the method of payment—for example, additional days may added to the pre-defined start date if payment is being made by check to allow sufficient time for monies to be collected; and (d) whether the order is placed by mail or Internet will also affect the start date.  
      Use of the subscription application form  100  according to the invention provides a number of benefits. It allows the player  12  to play many different lottery games without requiring the cumbersome forms previously used by lottery operators. Previously, state lottery operators that have offered subscriptions using paper forms have used a separate form for players to submit their numbers. They have never used the states “game play slips” to submit their numbers for subscription plays. The paper forms used by all current and previous state lottery operators only allow subscriptions for one or two of their lottery games due to the amount of paper that is required to offer more than one lottery game. Other benefits are that the lottery operator&#39;s then current “game play slips” (1) are familiar to the player; (2) are already in place; (3) do not require any new forms or additional forms; (4) do not require special inventories or deliveries to the retail outlets; and (5) can be easily scanned by the same scanning devices that are built into the lottery terminals  11 , such as those currently located at retail outlets, to allow for more accurate entry into the subscription computer system  16  to record the player&#39;s preferences. In addition, because the numbers to be played are submitted on a separate form (play slips  110 ), the application form  100  is small enough that it can be made part of a standard brochure that preferably can be made available at lottery sales outlets or counters. For example, the application form  100  can fit onto just one of the panels in a 9″×3⅞″ brochure having 3 or 4 panels. Including the application form  100  as part of such a brochure also can enhance the marketing of the subscription service.  
       FIG. 3  illustrates a preferred computer network system for practicing the present invention. The system includes a computer system  16 . The computer system  16  includes a central processing unit (CPU)  108  for processing data and program instructions. The computer system  16  also includes input and output devices, as is well known in the art. For example, the computer  16  preferably includes a display screen or monitor  114 , a keyboard  116 , a mouse  118 , a printer (not shown), etc. The computer system  16  further includes data storage and memory devices, as are known in the art, for storing the database  102 , an application program  106  and a Web browser  112 . The database  102  is used to store subscription and lottery data. The database  102  is a relational database, as are well known in the art. The computer system  16  is connected to a network  30 , which serves as a communications medium with lottery terminal  11  and user computers  24 ,  110 ,  111  and nnn (where nnn refers to any number of users). In a preferred embodiment of the invention, the network  30  comprises the Internet. The Internet is a global network of computers. One popular part of the Internet is the World Wide Web, or the “Web.” The World Wide Web contains computers that display graphical and textual information. Computers that provide information on the World Wide Web are typically called “web sites.” A website is defined by an Internet address that has an associated electronic page, often called a “home page.” Generally, a home page is an electronic document that organizes the presentation of text, graphical images, audio and video into a desired display. Upon reading this specification, those skilled in the art will now understand that, under appropriate circumstances, considering issues such as developments in computer hardware, software and connectivity, etc., other network configurations and devices also may suffice, such as for example, PDAs connected via a wireless network, etc.  
      Still referring to  FIG. 3 , the computer system  16  is configured according to a preferred embodiment of the invention to include a web server for hosting a website, which includes a homepage and a module for player registration and login. The website can be hosted by the subscription service provider  10 , or it may be hosted by another party external to the subscription service provider  10 . Upon reading this specification, those skilled in the art will understand that, under appropriate circumstances, considering issues such as user preference, services offered by a website manager, market demand, subject area, etc., other functional modules may be included. The application program is operable with the database to provide the functionality described below.  
      Appendix A summarizes preferred security and control features of a subscription system according to the invention. These features help ensure the security, control and integrity of the subscription computer system  16 . The subscribing player  12  can be set up as either an Internet or non-Internet subscriber. If the player is a non-Internet subscriber, then all requests must be submitted in writing on forms provided by the lottery operator and no change in plays can take place in less than seven days, or some other time period from when the request is received to allow time for a new confirmation certificate (described below) to be received by the subscriber. If the subscriber is an Internet subscriber then all requests must be made through the internet and no change in plays can take place in less than three days or some other time period from when the request is received to allow time for the back-up system to capture all changes and to send the new requests to the lottery&#39;s on-line vendor for processing. Subscribers may call the lottery&#39;s subscription department to ask questions, but preferably all requests must be submitted as previously described. Subscribers can be allowed to switch from Internet to non-Internet, or vice-versa by requesting the change. In some cases, there may be a hybrid of Internet and Non-Internet service. For example, some states may not allow orders to be taken over the Internet, but they may allow a player to sign up and provide demographic information over the Internet, then have the player print out forms for ordering tickets and returning those forms by mail along with payment information. In addition, the electronic file to be sent to the lottery&#39;s on-line vendor for any drawing will be created and provided to the lottery most likely the day previous to the drawing. Building in a one day time period allows for situations when electronic transmission may not be available and overnight or other physical delivery may be necessary. A cut off time period for player changes also is preferably set to be two days (or some other suitable time period) before the actual drawing date to allow sufficient time for back-ups prior to the creation of the file to be sent to the lottery&#39;s on-line vendor. Additional features include the classification of every subscription invoice into types and statuses and the controls that accompany such classifications, per Appendix A.  
      All subscribing players  12 , whether they subscribe online via the Internet  30  or otherwise, can view their results on the web, as described below. The main difference between the Internet and non-Internet subscribers is that only the Internet subscribers can submit their plays and make changes on the Internet. Non-Internet subscribers can only view their information and results on-line. In addition, Internet subscribers preferably will receive most correspondence via the Internet, whereas non-Internet subscribers will receive their correspondence through a mail service such as the U.S. Postal Service. Once registered in the subscription computer system  16 , the player  12  also has the option of viewing his or her play subscription and numbers from the secured web site of the subscription computer system  16 , which can be operated by the subscription service operator  10  or third party web hosting company.  
      According another novel aspect of the invention, the lottery operator  14  preferably charges a small fee to the player  12  for subscription play. Using a small fee is a better marketing technique because it creates perceived value in the minds of the subscribers and provides funding to help perpetuate the subscription service through services and communication. Previously, no state lottery has implemented a method or system that charges a fee for a subscription service. On the contrary, state lotteries have given discounts to attract subscription players.  
      According to still another novel aspect, the method and system of the invention enable players to pay electronically each month, making playing the lottery more convenient and affordable. Before the present invention, the state lotteries have always collected, and they continue to collect, 100% of all amounts due from the player up front. According to the present invention, however, the US banking system&#39;s ACH (Automated Clearing House) and credit and debit cards can be used with state lottery plays to allow subscribers to have monthly or other periodic charges to their bank card or withdrawals from their bank account. Players can also submit full payment with their orders by check or money order. To the inventor&#39;s knowledge, no state, current or previously, allows periodic charges to pay for numbers that have been assigned to the person for longer periods of time than the period interval (e.g., paying monthly for a six month subscription). Thus, with the present invention a player can sign up for one year and receive a confirmation certificate of his or her numbers for the year, but only pay a partial amount each month.  
      According to another aspect of the invention, subscribers can indicate in advance within the system how many extra tickets they would like to purchase each drawing night based on jackpot levels. This advanced play service is an automated system feature that sells additional tickets to a subscriber upon the occurrence of a defined condition, such as the jackpot for a particular game reaching $50,000,000. The advance plays can be paid for by charges to a debit or credit card as needed, but a preferred system as reflected in  FIG. 10 , is to create a reserve account from which the charges are paid. The system maintains three accounts for each person. The subscription account maintains the monies to be used to pay for the basic subscription plays (everything but advance plays). The reserve account holds the money to be used for advance plays and can be used to support the main subscription account if that account is short, and the system holds the winnings in a separate winnings account. The subscription account and reserve account can be one account, but there are accounting advantages to keeping monies to pay for fixed period commitments (subscription) separate from conditional advanced plays. The reserve account, which maintains a balance, can be replenished automatically or manually. For automated replenishment, the invention allows players to predefine at what point they want additional funds deposited to their reserve account. For example, the player may say when the reserve account drops below $15, deposit $20 into that account via their automated payment method (Credit Card, Debit Card, ACH, or similar source). The player can also allow the money to run out, at which time a predefined amount can be added. That amount can be set by the player or by the lottery operator. For manual replenishment, the player can send in a payment to the lottery or can add to the account themselves, for example, via the Internet.  
      The reserve account is also an advantageous feature for open-ended subscription play. An open-ended subscription play does not require the subscriber to commit to a fixed time period like that is required under the historical and current subscription programs where a person typically signs up for 3, 6 or 12 months. The open-ended program allows the player to place an order for a continuous purchase of tickets until cancelled by the player. In some instances, there may be a revalidation of the order required in order to have the ticket purchases continue. This form of subscription also allows the player to make changes at will so that the tickets sold to the player by the lottery would reflect the player&#39;s most recent preferences. A player wishing to participate in open-ended subscription play can do so without missing any drawings and without having to be continually bothered to buy tickets. Thus, the player may want the lottery operator to sell him or her lottery tickets continually every drawing until further notice and to take the funds out of the reserve account to pay for those tickets. The player can sign up for open-ended lottery play on the web or by mail. The system can include a reserve account to hold the money. The reserve account can be drawn down each drawing night as the tickets are sold to the player. This method of open-ended subscription play saves the player and lottery operator from having to continually charge a payment source, such as a credit card, for small purchases. By having a minimum in the reserve account, it also ensures that the funds are already collected and available for use. By maintaining a minimum level and automatic amount to be replenished there also will be time for a player to be contacted if more funds cannot be obtained before the reserve runs out. This is particularly important if the payment source to replenish the reserve is by ACH, which can take up to a week before verification of funds can be made.  
      According to another novel aspect of the invention, subscribers can join one or more lottery pools each drawing night based on jackpot levels, and pay for the participation just like they might do with advance plays for individual tickets described previously. In some cases, subscribers will want to be in a lottery pool all the time and increase their participation in more pools as the jackpot rises. Previously, no state lottery has created lottery pools and placed players into those pools as a standalone service or as part of its subscription service. Purchasing services that act as agents for players have offered pooling, but “purchases on behalf of others” is a legally distinct and separate business from the “selling” of lottery tickets. Only state governments can legally sell or authorize the sale of lottery tickets and no state government has ever created lottery pools and sold interests in those pools. Not only does the pooling feature according to the invention offer more benefits to the players by giving each person more chances to win, but as an added benefit, it helps the lottery operator to entice people to take part in the lottery operator&#39;s subscription service. It can be used as a reward for the player&#39;s loyalty.  
      Referring again to  FIG. 1 , after the subscription computer system  16  validates the submitted information and payment for the subscription has been collected, it generates a confirmation certificate  25  (step  23 ) indicating the numbers selected, payment arrangements, the first drawing for which the player is entered, the last drawing for which the player is eligible to participate, contact information for the player, and contact information for the subscription service operator  10 . The subscription service operator  10  then sends the confirmation certificate  25  to the subscribing player  12  (step  40 ). According to a preferred method, one day after receipt of the full payment or initial payment, in the case of periodic or monthly payers, the confirmation certificate is mailed to the subscribing player, indicating (a) that the play has been entered into the subscription system; (b) the draw dates; (c) the numbers for each draw date; (d) the lottery games requested, (e) schedule of ACH, debit card, or credit card withdrawal dates and amounts if they selected periodic charges, (f) disclaimer explaining what happens if game design is changed during their plays; (g) contact information; and other notes, and (h) other rules. In the case where payment is made by Internet via a bank card, or via a reserve account where instant credit can be given, the confirmation certificate can be delivered via the Internet almost instantaneously.  FIGS. 16A and 16B  show a form for an exemplary confirmation certificate.  
      As shown in  FIGS. 16A and 16B , a game design disclaimer is implemented to protect the states and multi-state games from having to wait until after the last draw date of existing sold tickets or subscriptions before having games changes take place. Powerball, for example, had a rule until just recently that does not allow states to sell subscription services because the subscription services, which are for 3 months to 1 year, inhibit timely changes in the game by Powerball. Each state is now left up to how to handle changes. With the present invention, that is not a problem. The tickets are not only submitted and purchased just one drawing at a time, but the subscriber&#39;s confirmation certificate, which shows all numbers that will be played over the subscription time period, includes a disclaimer substantially as follows: 
          IMPORTANT NOTICE—The following numbers will be sold to you subject to the terms and conditions controlling all subscription plays and on the draw dates and for the games shown as long as there are no changes in the game design. If there are any changes in the game, you will be notified by mail and/or email so that you can make changes in your play. If, by the drawing date, when the changes are to take place, we have not received a written reply from you regarding the changes, we will take the following steps: If the game has been changed so that one or more of your numbers are no longer available in the new game matrix, then we will assign new numbers to replace those numbers that are no longer valid. If the quantity of numbers has been increased or decreased requiring an increase or decrease in your number set, then the appropriate increases or decreases will be made to your number sets. If your numbers are still valid in the new game matrix, then we will continue to play the numbers you have given us. Any of these changes will remain in effect until we receive written notice from you selecting different numbers. 
 
 With subscription tickets only being included in the online gaming system one day in advance of the drawing, there is no system liability for future subscription tickets. In addition, the disclaimer will allow the games to be changed at anytime. This feature of the present invention therefore opens up the opportunity for the states to offer subscription plays. 
       

      The system can incorporate a cut off time for new subscriptions, changes to a subscription, or funds collections for entry into a drawing based on a pre-defined period agreed to between the lottery operator  14  and the subscription services operator  10 . Thus, for example, if a game has a scheduled drawing on Wednesday at 9 PM, the cut off time for new subscription play, changes or funds collections might be 12 noon on Monday, two days prior. This cut off time would not affect advance play tickets, however, which have been pre-arranged prior to the cut off time, but whose trigger point may be after the cut off time. For example, the jackpot results for a Monday nights drawing, which are required to determine whether or not advance play tickets should be sold to players for the Wednesday&#39;s drawing, will not be known until after this cut off time in this example.  
      Referring again to  FIG. 1 , after a player&#39;s subscription is entered into the system and is ready for the first drawing, the ticket sale is communicated to the lottery operator  14  (step  40 ). On the night prior to the drawing day (or other agreed time), the subscription services operator  10  provides an electronic file to the lottery on-line processing system (the system maintained by the state vendor) and to the lottery back office internal control system (the state&#39;s internal system), which together comprise lottery operator  10  (step  44 ). The electronic file includes a plurality of records. Each record in the electronic file can include an identification of the game to be played, the type of play, the numbers selected, a subscription unique control number, a lottery control number and the play amount. The electronic file can be provided, for example, via tape, other electronic storage medium, or electronic transmission using a high-speed network connection to both systems. When the electronic file is sent to the lottery operator, the sale of the tickets represented by the records in the electronic file is recognized. The subscription computer system  16  is set up to allow security and verification processes through hash totals and cross checking of all wagers to insure they are recorded properly. This file transfer allows the lottery on-line processing system and the lottery back office internal control system to maintain complete accountability for all game draw sales, winner determination, and game liability for all drawings.  
      Upon identification and verification by the lottery operator of the numbers drawn for each game, the subscription service operator can enter those validated numbers into the subscription system, which information can be used to determine winning tickets and players. This process of verification of drawn numbers is done by the state and is the same process the state lottery operators currently perform, however, before making any announcement to the public regarding winners, the lottery operator  14  would first provide the drawn numbers to the subscription service operator  10  so that certain reconciliations can be made. This action triggers a search for all winning tickets on the subscription computer system  16 . The system can then print a recap totals report indicating the number of winning tickets in each category and the prize amounts in total for all tickets.  
      The lottery back office internal control system of the lottery operator  14  can perform its winner determination process and provide winning information reports to the subscription services operator  10  for each lottery game drawing for the tickets that were to be purchased according to the electronic file that was provided by the subscription services operator  10 . This is a separate process to measure the lottery operator&#39;s liability to the subscribing players and is done by the state lottery back office internal control system.  
      The on-line lottery system vendor can also complete a winner determination and provide similar or the same winning information reports to the subscription service operator. The information would be validated against the system information to make sure that all parties identify and agree with the same winning tickets  
      The subscription service operator  10  can reconcile results with the lottery operator  14 , including both the state lottery back office internal control system and the lottery on-line processing system. The subscription service operator can visually as well as electronically balance the winning tickets and amounts to the numbers provided by the lottery and lottery&#39;s on-line vendor. Any discrepancies would have to be reconciled as soon as possible so that the lottery could proceed with the release of winning information and amounts to the public.  
      The subscription service operator credits each player&#39;s accounts for amounts. For all winning tickets, each person&#39;s account balance would be updated. Automated deductions, provided by the lottery, will be made for taxes, government obligations, child support, etc. pending final verification and approval by the lottery.  
      According to another novel feature of the present invention, the subscription service operator can post to its website the results for each person.  FIG. 18  shows an exemplary posting of such results. This posting to the web an individual&#39;s results and highlighting matching numbers (whether the tickets are winners or not) for viewing by each subscriber has not previously been done by any state lotteries. Purchasing services may have posted results of an individuals play on the Internet, but purchasing services are not sellers of tickets. Using the Internet, as described herein, to help the state sell lottery tickets is entirely new to state lotteries.  
      State lottery and on-line vendor can reconcile and balance the game liability files on each of their systems. The subscription system operator would send an electronic file back to the State lottery back office system and the online gaming vendor with a record of all winnings amounts credited to player&#39;s account. This process can allow the state lottery and the online vendor system to reconcile and balance the game liability files on each system and to mark those tickets as PAID.  
      According to yet another novel aspect of the invention, the subscription service operator can oversee total or partial winnings distributions per a player&#39;s requests. Based on IRS guidelines, actual payments to the player over $600 preferably will be paid by the state and amounts of $600 and less will be paid by the subscription service operator. Subscribing players will also have the option of having the subscription service operator hold all winnings and only disburse checks based on a specific threshold levels so they don&#39;t receive small “nuisance” checks. This service of holding money for players has never been offered by any state. All previous and current state lotteries that do offer subscriptions send checks to winners no matter how small the check or they give them extended plays for the small winnings. This feature of the invention also can include a transfer option where the subscribers can have their winnings transferred to their reserve account to be used for purchasing additional tickets. The system also includes paying players by electronic payments to the players banking account rather than by mail. For winnings over $600, the lottery operator can process the list of winners and mail checks to each winner as directed through their normal payment process.  
      The system can cash reconcile and process an electronic funds transfer weekly to the state lottery back office system for the amount of money owed to the State for ticket sales, less any agreed upon fees less any commission due on all tickets sold, less any amounts of winnings credited to player accounts that would be held by the subscription service operator on behalf of the Subscribers. In addition, each week the system can provide a report both via paper and electronic versions, of all sales for that previous week for each game, the prize payouts from all drawings, the amounts due to the subscription service operator, the balance of subscription plays for all upcoming drawings, total play for each drawing, and other pertinent reconciling information.  
      The lottery operator can process the EFT in the same manner as it does for all retail locations.  
      Each week the system can purge from their files, after a six-month period, or other specified time period, all ticket records including payments made to winning tickets. This purge process can produce a written and electronic report of all records purged to provide an audit control document.  
      With the present invention, the marketing and advertising of the subscription service can be provided by the participating lottery at a very low cost and the role of the subscription system operator would be that of a backroom service provider. The advertising can be as simple as adding a “tag line” on all current advertising for the games, placement of subscription play brochure/application forms at all retail locations along side all other lottery game brochures, lottery web site advertising, advertising on tickets that are printed out or similar paper that is printed along with each ticket, and public relations. The subscription service operator will be doing on-going promotions through the Newsletter and other communications to players, but the primary responsibility for subscription play advertising would remain with the lottery operator. The subscription service operator has experience in this advertising arena and would be willing to share its knowledge with the lottery operator and their marketing agency.  
      Operation of the system will now be described in more detail with reference to the flowchart shown in  FIG. 1  and the interface depicted in  FIGS. 4-15 .  FIGS. 4A-4B  show exemplary displays of a game code screen  200  for inputting information for setting up a lottery game for which a player can be subscribed using the system of the present invention. The screen includes tab selections  202 - 210  for inputting and viewing general information about a selected lottery game, game numbers, awards paid by the selected lottery game, game holidays and additional game details. Referring to  FIG. 4A , the game information tab  202  is displayed. Selecting the game numbers tab  204  will display the number and range of game numbers that the specific lottery will accept.  FIG. 4B  shows the game awards tab  206  displayed. Information under this tab defines in the system the awards for given combinations of game numbers. A button  212  is provided for creating a pop-up message that the system can present to a player over the web when they have a winning ticket that is just one number away from a much larger prize, thus creating significantly more excitement than just listing the amount won. Other tab selections  208 ,  210  define additional parameters of the game in the system.  
       FIGS. 5A-5D  show exemplary displays of a subscription settings screen  214  and illustrate the process of inputting information for setting up default settings for subscriptions.  FIG. 5A  shows an exemplary display of a General Settings tab  216  for inputting general settings applicable to all subscriptions.  FIG. 5B  shows an exemplary display of the subscription Selections tab  218  displaying the specific subscription time periods and associated specific fee charges.  FIG. 5C  shows an exemplary display of the Jackpot Amounts tab  220  for defining jackpot levels to be stored in the system.  FIG. 5D  shows an exemplary display of the Pool Sizes tab  222  for inputting pool sizes to be stored in the system. Pool sizes can be ranges of sizes or specific sizes.  
       FIG. 6  shows a display of a Transaction Code screen  224  for providing audit capability and conformity of charges to the player, which is utilized by the system of  FIG. 3  for different services. Every transaction that affects a player&#39;s account balance is tagged with a classification according to what is referred to as a Transaction Code  226 . These codes facilitate proper charges, since many charges are pre-defined based on specific activities and they facilitate reporting and audit capability.  
      As shown in  FIG. 1 , subscription data for each potential player  12  can be obtained one of three ways, or a combination thereof: by manually entering the data from a subscriber&#39;s application, by scanning the player&#39;s application at the lottery terminal or scanning the application after it has been received by the subscription service operator  10 , or by having the player use the invention&#39;s online (web-based) registration system. When a lottery player utilizes the online subscription system, the player accesses the online system via the Internet by using one of the user&#39;s computers.  
       FIGS. 7A-7B  illustrate the process of inputting player information into the system and creating a new subscription for that player.  FIG. 7A  shows a Players screen  226  for entering information about a player into the system and viewing stored information about the player, showing a demographics tab selected  228  for entering demographic information provided by a player in his or her application.  FIG. 7B  shows a subscription invoice screen  232  for displaying payment type information when an operator selects the payment type tab  230  shown in  FIG. 7A .  
       FIG. 8  shows a display of an invoice screen  234  prompting the user for information and a Subscription Type after the operator selects the new subscription button  231  for creating in the system a subscription for the player displayed in  FIG. 7 .  FIG. 9A  shows a display of a subscription invoice screen  236  for creating the subscription invoice prompted in  FIG. 8 , showing sections for inputting and viewing invoice information  238  and payment information  240  and also showing the Plays tab  242  for entering information about the game plays that the subscribing player has chosen.  FIG. 9B  shows the display of the subscription invoice screen and a display of a monthly payment schedule  244  in response to the operator&#39;s selection of the payments button  246  on the subscription invoice screen  236 .  FIG. 10  shows an exemplary display of the subscription invoice screen  236  showing the Money Management tab  248  for entering information about money management preferences for the subscribing player, including reserve account information  250 .  
       FIG. 11  shows a display of the subscription invoice screen  236  showing the AP Individual tab  252  for entering information about individual ticket advance plays for the subscribing player.  FIG. 12  shows a display of the subscription invoice screen  236  showing the AP Pooling tab  254  for entering information about advance plays for the subscribing player that are pooled with advance plays of other players. While the example of  FIG. 12  shows pool sizes  256  defined in ranges, it will be understood that specific pools sizes can also be set up. The advantage of using pool ranges is that once there are a sufficient number of players to make up the lowest number, there will never be any unfilled pools, which is a problem that occurs with specific pools sizes.  
       FIG. 13  shows an exemplary display of the Players screen  226  showing the subscription invoice of  FIGS. 9-12  pending for the subscribing player after the subscription has been saved in the system and before it is printed.  FIG. 14  shows the display of  FIG. 13  with the pending subscription invoice selected and after the new subscription button has been selected, prompting the operator for input to replace the invoice.  
       FIG. 15  shows an exemplary display of the Players screen  226  showing the account balances tab  258  for displaying financial transactions history for the selected player&#39;s subscription account.  
      From the foregoing, it can be seen that the present invention provides a number of advantages over the previously known art. For participating lotteries, there are a number of benefits. The invention will increase sales for all games with minimal to no cost to the lottery operator. The subscription service attracts former players, homebound players, busy people, intermittent players, and new players. It also provides a service to existing players who go on vacation, but don&#39;t want to miss playing for any drawing of the game, who want to spend more money to add pools to their lottery play, or who want to have tickets automatically sold to them through an automatic payment arrangement. The subscription service can be made available to all online games, not just jackpot games. (Some exceptions might be games that are played every five minutes and Video Lottery games.) Players like the flexibility and control that the method and system of the invention can provide to them in selecting and maintaining their play choices. Another advantage of the method and system is that it keeps players “in the game” regardless of the jackpot size. This increases the play level for the lottery operator when the base jackpot is in play following a major Jackpot win. Thus, it helps to grow the next jackpot for future draws faster for more play. Further, the method and system of the invention provide an anchor for the lottery operator in getting players attached to the ongoing lottery play. They provide the lottery operator with the ability to monitor play levels for those players signed up for the service. This is critical in assuring no inappropriate play issues arise. The method and system of the invention can even be used to limit the amount players place on their credit card per use or per time period. Moreover, the method and system of the invention can provide the lottery operator with a robust player research base to conduct game research, look for “nitch” products, and get solid player feedback on likes and dislikes on all games. This is critical in maintaining enjoyable and entertaining gaming options for all players, not just the subscription players.  
      The invention also provides benefits to lottery players, which in turn translates to more sales for the lottery. The players get much more than just a subscription for the upcoming game drawings. While the obvious benefits include no more standing in line for tickets, no more last minute dashes to the store, and no more missed drawings or unclaimed winners, they get much more. The method and system of the invention allow players to sign up for automatic additional plays for both individual and pooling tickets during large jackpot runs. They can participate in pools of any size, e.g. 5, 10, 20, 50, 100, 250, 500 and even 1000 tickets for only a dollar. The subscription services operator forms these pools and all tickets are sold to the players with full accounting and reconciliation on their accounts. The players can also purchase their subscription with monthly payments making their lottery playing more convenient and affordable. They can view their pool plays online if they desire. Not only do they receive a confirmation certificate for their subscription play, they also get a winning statement at the end of their play, they get quarterly statements on actions with their accounts, a complete reconciliation of their account balances and transactions, and renewal notices before their play runs out. Players also get the feeling of a club relationship through a club newsletter, jackpot alert notices, and special offers made available through the club. These special offers include free ticket give-a-ways, free dinners, and much more. Thus, the invention allows helps create a fun experience for the players and keeps up their interest in the lottery. This activity creates excitement and entertainment for the players and allows the lottery operator to communicate a winning message to all players.  
      The subscription services operator also can send out a personalized gift message to all players who receive a gift subscription from anyone. The method and system of the invention allow players to accumulate small winnings in their accounts, yet produce a winning check only when the prize is significant according to the player&#39;s wishes. Moreover, the method and system of the invention allow players to access their accounts and play numbers over the Internet. This allows players to track their play and winnings after each drawing and see when their subscription play will end, etc. They can also sign up for more plays online, if they desire.  
      Players will benefit from the service and fun activities provided by the method and system of the invention. If a player is ever dissatisfied with the service for any reason a full refund can be provided for all “remaining play” activity, no questions asked. It&#39;s their money and they have control over how it is to be spent.  
      The cost to the lottery operator is less than what the lottery operator pays as commission to the normal retailer selling any of their on-line game tickets. The lottery operator must also agree to provide some amount of subscription play promotion and advertising over the course of a year, but this is minimal, especially considering the increased sales achieved with the method and system of the invention. Initial estimates of play level increase are in the range of 10 to 20 percent from the current base, when jackpots are at their lowest level. Placement of brochure/subscription order forms at all retail locations should be handled by the lottery operator.  
      The cost to the player for this robust service is minimal. For non-internet users the cost is anticipated to be about $2 a month and varies from $1.75 per month one year subscriptions, $2 a month for six month subscriptions and $2.50 per month for three month subscriptions. For Internet users, the cost is anticipated to be $1 per month regardless of the time period, but may vary slightly to encourage longer plays.  
      The invention in its broader aspects is not limited to the specific details, representative devices, and illustrative examples shown and described. Those skilled in the art will appreciate that numerous changes and modifications may be made to the preferred embodiments of the invention and that such changes and modifications may be made without departing from the spirit of the invention.  
                               Software Security and Control Features                                                        Charges to Appear   Change in       Certificate       on New   Games/Numbers/Time       Type   Purpose/Comment   Subscription   Period               New   New - not dependent on a prior   Service Fee +           Certificate.   Set-Up fee if first               time subscribing.       Renewal   Starts when old Certificate expires   Service Fee   All changes allowed.       Sub   Subscription Replacement - Refers   Service Fee +   All changes allowed.       Replacement   to the replacement of any Certificate   Subscription           that has been provided to the   Replacement Fee.           recipient, which includes any changes           in the games, numbers, or date ranges           of the main play.           The System will change the Active           Status of the Certificate being           replaced to Replaced.       Advance   Advance Replacement - Refers to the   There are no charges   Only changes in Advance       Replacement   replacement of any Certificate that   the first time.   Plays are allowed.           has been provided to the recipient,   The Advance           which only includes changes to the   Replacement Fee is           Advance Plays.   only charged if the           The System will change the Active   person already had           Status of the Certificate being   advance plays and are           replaced to Replaced.   now adding or               making changes.       Inactive   Inactive Replacement - Refers to the   Service Fee +   The time period will be       Replacement   replacement of any Certificate that   Inactive Replacement   extended to make up for           had a status of Inactive.   Fee.   missed drawings. No           The System will change the Inactive       other changes are           Status of the Certificate being       allowed.           replaced to Replaced.       Deposit   Records Deposit details.       Deposit Only                       Automatic Charge for                   Status Change to       Certificate       appear on Account   Status       Status   Purpose/Comment   Summary   Assignment               Pending   Refers to any Certificate which has   $ -0-   Assigned by system           not yet been printed.           The only change that can be made to           a Pending Certificate without causing           a new certificate to be created are           changes in the number sets of the           main play or any changes to the           advanced plays.       Pending   Once a Pending Certificate has been   $ -0-       Locked   printed its status changes from           Pending to Pending Locked and no           changes may be made.       Active   A Certificate become Active when the   $ -0-   Assigned by system.           file is first sent to the lottery for           ticket purchases for that particular           Certificate.           There can be more than one Active           Certificate.       Inactive   When funds cannot be collected. This   Inactive Pending Fee -   Manual Assignment       Pending   status is assigned when funds are first   Equals same amount as   is required for           denied by the bank. Denied funds can   Cancellation fee since   checks.           come from either ACH or Bank Cards.   we have to set that   Automated entries           The Certificate is not yet Inactive   amount aside should the   will be made for           because funds have been collected in   payment never be   Credit Card or           advance and funds may become   collected.   Debit Card denials.           available prior to running out.   This fee reduces the   Inactive Credit               amount left for tickets.   Adjustments are               If the funds become   manual entries.               available prior to               running out, then an               Inactive Credit               Adjustment will be               made.       Inactive   Funds not available by State cut off   Inactive Fee   Assigned by system.           date forcing a drawing to be missed.           The certificate is classified as           Inactive and can not be reactivated.           It can only be replaced.       Cancelled   Active Certificate was cancelled.   Cancellation Fee. The   Manual Assignment               amount should be set to               zero if the person has               already been charged an               Inactive Pending Fee.       Expired   Active Certificate expired normally.   $ -0-   Assigned by system       Changed   Changes to a Pending Certificate are   No Charge   Assigned by system           classified as “Changes” rather than           “Replacements,” since they are internal           only. Only Pending can have           “Changes.”       Replacement   Replacement is a status that is assigned   Sub. Replacement Fee   Assigned by system           to any Certificate that was provided   Adv. Replacement Fee           to the customer upon creating a   if changing.           new Certificate.   Inact. Replacement Fee       Hold   With a status of “Hold” all activity   No Charge   Manual Assignment           will cease until released.       Deposit   Deposit               Deposit       Status   Purpose/Comment   Charges   Process               Pending   All Initial Payments and   Automated Charges are   Automatic by system.           other Deposits start out as   set by the system. In           Pending unless the source is   those cases where the           Cash.   status is manually set or               changed, charges, if               any, will be entered               manually.       Collected   Once the Default Delay   Same as Pending.   Automatic by system           Period has expired on funds       when Default Delay           collection       Period has expired.                   It must be changed                   manually if the previous                   status is Denied.       Denied   If collection is Denied.   Same as Pending.   Manual Entry