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Insurance Abstract
A system and method for providing a gambling loss insurance policy
automatically computes insurance premiums and processes gambling
sessions covered by the gambling loss insurance policies. The players
may purchase the insurance policies using various means such as
coins, earned winnings, or credit cards. The gambling loss insurance
system provides a high level of flexibility for the players to define
specific parameters of the insurance policy. Additionally, the players
may purchase the insurance policies directly from the gaming machine,
a custom terminal on casino floor, or cage personnel having access
to a centralized network server.
Insurance Claims
1. A method comprising: receiving a confirmation to purchase a gambling
insurance policy, the confirmation received from a player; determining
an insurance premium cost associated with the gambling insurance
policy; receiving a payment for the insurance premium cost, wherein
the payment is distinct from the confirmation; determining an amount
of loss generated by the player during a game play; and determining
a refund based on the amount of loss and the gambling insurance
policy.
2. The method of claim 1 wherein the payment is temporally distinct
from the confirmation.
3. The method of claim 1 wherein the payment is physically distinct
from the confirmation such that the player must perform two distinct
actions to provide the confirmation and the payment.
4. The method of claim 1 further comprising providing the refund
amount to the player.
5. The method of claim 4 wherein providing the refund comprises
providing the refund at a cashier station.
6. The method of claim 4 wherein providing the refund comprises
providing the refund at a gaming device.
7. The method of claim 4 wherein providing the refund comprises
providing the refund as a credit to an electronic account associated
with the player.
8. The method of claim 4 wherein providing the refund further comprises
determining a preferred manner through which to provide the refund.
9. The method of claim 8 wherein determining the preferred manner
comprises referencing at least one player preference associated
with the player.
10. The method of claim 4 further comprising updating an insurance
database to reflect providing the refund.
11. The method of claim 1 wherein determining the insurance premium
cost comprises calculating the insurance premium cost based on at
least one player-defined parameter.
12. The method of claim 11 further comprising receiving the at
least one player-defined parameters from the player.
13. The method of claim 12 wherein receiving the player-defined
parameters comprises receiving input relating to at least one of:
a loss at which the gambling insurance policy pays a claim, an amount
of each bet, and a time period over which the gambling insurance
policy is in effect.
14. The method of claim 1 wherein receiving the confirmation comprises
receiving the confirmation through a gaming device.
15. The method of claim 1 wherein receiving the confirmation comprises
a casino representative receiving the confirmation.
16. The method of claim 1 wherein receiving the confirmation comprises
receiving the confirmation at a cashier's station.
17. The method of claim 1 wherein receiving payment comprises receiving
payment through at least one of a gaming device, a casino representative,
and a cashier's station.
18. The method of claim 1 further comprising defining parameters
associated with the insurance policy.
19. The method of claim 18 wherein defining parameters associated
with the gambling insurance policy comprises defining at least one
parameter from a group comprising: a timer period during which the
gambling insurance policy is in effect, a number of game plays for
which the gambling insurance policy is in effect, a wager amount
per game play, a coverage amount, a type of gaming device, and a
threshold of losses above which the refund is paid.
20. The method of claim 19 wherein the coverage amount is based
on either a percentage of losses or a fixed amount.
21. The method of claim 18 wherein defining parameters comprises
defining the parameters using a phone.
22. The method of claim 1 further comprising outputting at a gaming
device an option to purchase the gambling insurance policy.
23. The method of claim 1 wherein receiving payment comprises debiting
an account associated with the player.
24. The method of claim 1 wherein receiving payment comprises debiting
a credit balance on a gaming device associated with the player.
25. The method of claim 1 wherein accepting payment comprises receiving
currency from the player.
26. The method of claim 1 wherein receiving confirmation to purchase
the gambling insurance policy comprises registering the player.
27. The method of claim 1 further comprising transmitting the insurance
premium cost to a gaming device and displaying information relating
to the insurance premium cost to the player through the gaming device.
28. The method of claim 1 further comprising transmitting the confirmation
to a network server from a gaming device.
29. The method of claim 1 further comprising receiving, at a network
server, information related to receiving the payment.
30. A method comprising: outputting at a gaming device an option
to purchase a gambling insurance policy; receiving a confirmation
to purchase the gambling insurance policy, the confirmation received
from a player; and after receiving confirmation, receiving payment
for the gambling insurance policy.
31. A system comprising: a processor adapted to: receive a confirmation
to purchase a gambling insurance policy, the confirmation received
from a player; determine an insurance premium cost associated with
the gambling insurance policy; receive a payment for the insurance
premium cost, wherein the payment is distinct from the confirmation;
determine an amount of loss generated by the player during game
play; and determine a refund based on the amount of loss and the
gambling insurance policy.
32. The system of claim 31 further comprising a user interface
and wherein the processor is operatively coupled to the user interface.
33. The system of claim 32 wherein the user interface comprises
a gaming device.
34. The system of claim 33 wherein the processor is remotely positioned
from the gaming device.
35. A computer readable medium comprising software with instructions
to: receive a confirmation to purchase a gambling insurance policy,
the confirmation received from a player; determine an insurance
premium cost associated with the gambling insurance policy; receive
a payment for the insurance premium cost, wherein the payment is
distinct from the confirmation; determine an amount of loss generated
by the player during game play; and determine a refund based on
the amount of loss and the gambling insurance policy.
Insurance Description
[0001] The present application is a continuation of U.S. application
Ser. No. 11/008,554, filed Dec. 9, 2004, which is a continuation-in-part
application of U.S. patent application Ser. No. 10/365,154, entitled
"Method And Apparatus For Providing Insurance Policies For
Gambling Losses", filed Feb. 11, 2003 and issued as U.S. Pat.
No. 6,869,362 on Mar. 22, 2005;
[0002] which is a continuation-in-part of U.S. patent application
Ser. No. 09/816,017, entitled "System and Method for Generating
and Executing Insurance Policies for Gambling Losses", filed
on Mar. 23, 2001 and issued as U.S. Pat. No. 6,561,903 B2 on May
13, 2003;
[0003] which is a continuation of U.S. patent application Ser.
No. 09/168,398 entitled "System and Method for Generating and
Executing Insurance Policies for Gambling Losses", filed on
Oct. 6, 1998 and issued as U.S. Pat. No. 6,254,482 B1 on Jul. 03,
2001;
[0004] which is a divisional of U.S. patent application Ser. No.
08/804,060 entitled "System and Method for Generating and Executing
Insurance Policies for Gambling Losses", filed on Feb. 21,
1997 and issued as U.S. Pat. No. 6,113,493 on Sep. 05, 2000.
[0005] The content of each of these applications is incorporated
herein by reference.
CROSS-REFERENCE TO RELATED APPLICATIONS
[0006] The present application is related to U.S. patent application
Ser. No. 11/423,166 filed on Jun. 9, 2006 in the name of Walker
et al. and entitled "METHOD AND APPARATUS FOR PROVIDING INSURANCE
POLICIES FOR GAMBLING LOSSES".
[0007] The present application is related to U.S. patent application
Ser. No. 11/423,168 filed on Jun. 9, 2006 in the name of Walker
et al. and entitled "METHOD AND APPARATUS FOR PROVIDING INSURANCE
POLICIES FOR GAMBLING LOSSES".
[0008] The present application is related to U.S. patent application
Ser. No. 11/423,171 filed on Jun. 9, 2006 in the name of Walker
et al. and entitled "METHOD AND APPARATUS FOR PROVIDING INSURANCE
POLICIES FOR GAMBLING LOSSES".
[0009] The present application is related to U.S. patent application
Ser. No. "______" 04-059-C4) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0010] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C5) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0011] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C6) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0012] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C7) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0013] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C8) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0014] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C10) concurrently herewith in
the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0015] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C11) concurrently herewith in
the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
[0016] The present application is related to U.S. patent application
Ser. No. "______" (04-059-C12) filed concurrently herewith
in the name of Walker et al. and entitled "METHOD AND APPARATUS
FOR PROVIDING INSURANCE POLICIES FOR GAMBLING LOSSES".
BACKGROUND OF THE INVENTION
[0017] The present invention relates generally to gambling systems,
and more particularly to a system and method for generating and
executing insurance policies for gambling losses.
[0018] Gambling at casinos has long been a popular activity. Casinos
offer a wide variety of games such as slot machines and table games.
Some of the more common slot machines include standard reel machines,
video poker, and keno machines. A conventional slot machine operates
when a player inserts one or more coins, bills, or tokens into a
coin acceptor and plays the game by pulling a handle or pushing
a button. In many instances, the slot machines are connected to
a network with a centralized tracking system.
[0019] Regardless of the particular type of game, gambling generally
exposes the players to unpredictable gambling losses. Once a player
starts gambling, it is sometimes hard for the player to keep accurate
track of the amount of gambling losses, and even players that can
do so sometimes find it hard to control the urge to continue playing.
Thus, gambling may result in a substantial financial loss to the
player.
[0020] It is known in the art to provide insurance policies against
certain types of gambling losses. One system for providing such
gambling loss insurance is described in U.S. Pat. No. 5,178,390
(Okada). This patent describes a slot machine that offers insurance
by having the player insert coins into a coin acceptor dedicated
to insurance payments. Thereafter, the slot machine provides a payout
to the player depending on whether the machine has paid any jackpots
over a given number of handle pulls. The payout, however, is not
directly related to the amount of gambling losses, and the insurance
protection applies only to a particular machine from which the insurance
was purchased. Therefore, the player not only has limited flexibility
in defining the policy requirements, the player must play at a particular
machine during the entire insurance coverage period.
[0021] Another patent, U.S. Pat. No. 4,669,731 (Clarke), teaches
a slot machine that pays out to the player when a predetermined
number of consecutive games are lost. Similar to the Okada patent,
however, the protection is not transferable between various slot
machines, and the player cannot define the requirements of the protection,
such as amount of losses.
[0022] Accordingly, not only are these systems restrictive in defining
the type and scope of the insurance protection, they do not offer
avenues for individuals to play different types of games at different
locations under a single insurance coverage. Instead, the players
must purchase the insurance at the particular machine at which they
will play throughout the entire insurance coverage period. Additionally,
once the player initiates the insurance period, the player does
not have an option to suspend the gambling session. Thus, these
systems not only provide limited protection against gambling losses,
they also significantly limit the games that may be played while
covered by an insurance policy.
[0023] Therefore, it is desirable to provide protection against
unpredictable gambling losses with flexible insurance policies.
[0024] It is also desirable to offer insurance protection enabling
players the freedom to move between slot machines while maintaining
a high level of playing enjoyment.
[0025] It is further desirable to provide a method of procuring
gambling loss insurance through commonly accessible means such as
credit cards.
SUMMARY OF THE INVENTION
[0026] Systems and methods consistent with the present invention
automatically determine appropriate premiums for gambling insurance
policies, and provide convenient distribution and administration
of those policies.
[0027] Specifically, a system for providing a gambling loss insurance
policy consistent with this invention comprises a game terminal
and a game server. The game terminal includes processing means,
user input means, and a display. The processing means executes a
game. The user input means receives a user ID, game information,
and policy requirements for the gambling insurance policy. The display
displays game results and information relating to the gambling insurance
policy. Moreover, the game server includes a receiving means, a
determining means, and a transmitting means. The receiving means
receives the policy requirements from the game terminal and the
determining means determines a premium cost based on the policy
requirements. Finally, the transmitting means transmits the premium
cost to the user.
[0028] A method for providing a gambling loss insurance policy
consistent with this invention comprises several steps. Initially,
a game terminal receives a user ID and policy requirements for the
gambling insurance policy from the user. The game terminal transmits
the user ID and the policy requirements to a game server, which
then determines a premium cost based on the policy requirements.
Finally, the game server transmits the cost of the premium to the
user at the game terminal.
BRIEF DESCRIPTION OF THE DRAWINGS
[0029] The accompanying drawings, which are incorporated in and
constitute a part of this specification, illustrate the invention,
and together with the description serve to explain the principles
of the invention.
[0030] FIG. 1 is a block diagram of a gaming system consistent
with the present invention;
[0031] FIG. 2 is a detailed block diagram of the network server
in FIG. 1;
[0032] FIG. 3 is a table illustrating the data structure of a player
database in the data storage device of FIG. 2;
[0033] FIG. 4 is a table illustrating the data structure of an
insurance database in the data storage device of FIG. 2;
[0034] FIG. 5 is a detailed block diagram of the slot machine in
FIG. 1;
[0035] FIG. 6 is a flowchart illustrating a preferred process for
selecting policy requirements;
[0036] FIG. 7 is a flowchart illustrating a preferred process for
calculating an insurance premium;
[0037] FIG. 8 is a flowchart illustrating a preferred process for
finalizing the purchase of the insurance policy;
[0038] FIG. 9 is a flowchart illustrating a preferred process for
system maintenance of active insurance policies;
[0039] FIG. 10 is a flowchart illustrating a preferred process
for processing a gambling session covered under the insurance policy;
[0040] FIG. 11 is a flowchart illustrating a preferred process
for determining whether an insurance adjustment is necessary pursuant
to the results of the gambling session of FIG. 10; and
[0041] FIG. 12 is a flowchart illustrating a preferred process
for transmitting a payout to the player.
DETAILED DESCRIPTION
[0042] Reference will now be made in detail to preferred embodiments
consistent with the invention, examples of which are illustrated
in the accompanying drawings.
System Architecture
[0043] FIG. 1 shows a gaming system consistent with the present
invention having a network server 200 and a slot machine 500. Slot
machine 500 is only one example of a gaming machine, and one skilled
in the art may easily substitute slot machine 500 with other types
of gaming machines. Network server 200 is preferably a conventional
server computer and slot machine 500 is a conventional slot machine.
Although FIG. 1 shows only one slot machine 500 connected to network
server 200, several slot machines 500 and/or other gaming machines
may connect to network server 200.
[0044] In operation, slot machine 500 transmits to network server
200 information such as player ID number, policy requirements, insurance
premiums, and gambling results. Network server 200 transmits to
slot machine 500 information such as insurance premium and payout
data.
[0045] FIG. 2 shows a detailed block diagram of network server
200. Network server 200 preferably includes a central processing
unit (CPU) 205, a communication port 210, a random access memory
(RAM) 215, a read-only memory (ROM) 220, a clock 225, and a data
storage device 240. All of these later elements are connected to
CPU 205 to facilitate the operation of server 200.
[0046] In the example shown, network server 200 receives and transmits
information using an interface 230. Server 200 may be configured
in many different ways. For example, network server 200 may be a
conventional server computer such as an RS 6000 manufactured by
IBM Corporation. Alternatively, the function of server 200 may be
distributed across multiple computing systems as described below.
[0047] Data storage device 240 may include a hard magnetic disk
drive, optical storage units, CD-ROM drives, or flash memory. In
one embodiment, database software such as Oracle7, manufactured
by Oracle Corporation, creates and manages these databases. Data
storage device 240 contains databases used in processing transactions
in accordance with the present invention, including a player database
245 and an insurance database 250. Insurance premium calculation
algorithms (not shown) are preferably stored in storage device 240
and executed by CPU 205.
[0048] FIG. 3 shows an example of the organization of player database
245, which maintains data about the players. Database 245 includes
multiple records 245a-c, each record including fields specific to
a player, such as name, player ID, address, credit card number,
credit card expiration date, earned payout, preferred payment method,
and insurance policy tracking number.
[0049] FIG. 4 shows an example of the organization of insurance
database 250, which maintains data on insurance policies generated
by the players. Database 250 includes multiple records 250a-c, each
record including fields specific to a player such as player ID,
policy tracking number, coverage type, premium amount, loss threshold,
coverage period, coverage amount, status, and gambling session results.
[0050] Interface 230 connects network server 200 to a network of
slot machines 500 and/or other gaming machines. Interface 230 also
connects to communications port 210.
[0051] Network server 200 may also be configured in a distributed
architecture, wherein databases and processors are housed in separate
units or locations. Some such servers perform primary processing
functions and contain at a minimum, a RAM, a ROM, and a general
processor. In such an embodiment, each of these servers is attached
to a wide-area network (WAN) hub that serves as a primary communication
link with the other servers and gaming machines. The WAN hub may
have minimal processing capability itself, serving primarily as
a communications router.
[0052] FIG. 5 shows a detailed block diagram of slot machine 500.
Interface 230 connects slot machine 500 to network server 200. Slot
machine 500 includes a CPU 505 connected to a RAM 510, a video display
area 515, a ROM 520, a reel controller 525, a player card tracking
device 530, a random number generator 535, a starting controller
540, interface 585, a data storage device 550, a hopper controller
565, hopper 570, an operating system 575 (typically comprising software
stored in memory), and a clock 580. Data storage device 550 includes
a probability table 555 and a payout table 560.
[0053] Slot machine 500 operates in a conventional manner. The
player starts the machine by inserting a coin or using electronic
credit, and initiating starting controller 540. Under control of
a program stored, for example, in data storage device 550 or ROM
520, CPU 505 directs random number generator 535 to generate a random
number. CPU 505 looks up the generated random number in stored probability
table 555 and finds the corresponding outcome. Based on the identified
outcome, CPU 505 locates the appropriate payout in the stored payout
table 560. CPU 505 also directs reel controller 525 to spin reels
526, 527, 528 and to stop them at a point when they display a combination
of symbols corresponding to the selected payout. When the player
wins, the slot machine 500 stores the credit balance in RAM 510,
and displays the balance in video display area 515.
[0054] Hopper controller 565 is connected to hopper 570 for dispensing
coins. When the player requests to cash out by pushing a button
on slot machine 500, CPU 505 checks RAM 510 to see whether the player
has any credits and, if so, signals hopper controller 565 to release
an appropriate number of coins into a coin tray (not shown).
[0055] In alternative embodiments, slot machine 500 does not include
reel controller 525, and reels 526, 527, 528. Instead, video display
area 515 graphically displays simulated representations of objects
contained in the selected game, such as graphical reels or playing
cards. These representations are preferably animated or displayed
to simulate playing of the selected game.
[0056] Player card tracking device 530 includes display 531 and
card reader 532. Players insert player tracking cards into card
reader 532. Tracking cards can be plastic cards with magnetic strips
electronically storing respective player ID numbers. Display 531
displays information concerning the use of player card tracking
device 530, and allows communications to be displayed to the player
regarding insurance policy requirements. Display 531 may be a touch
screen display for receiving signals from the player concerning
the selection of the requirements.
[0057] Alternatively, slot machine 500 or player card tracking
device 530 may include one or more separate input buttons (not shown)
for the players to select the policy requirements and provide other
input such as a PIN. Credits earned during play are stored locally
in RAM 510 and displayed in video display area 515. Slot machine
500 or player card tracking device 530 could also include one or
more separate input devices for selecting the policy requirements.
[0058] In other embodiments, slot machine 500 recognizes the identity
of players through player identification devices other than player
card tracking device 530, thereby eliminating the need for players
to carry player identification cards. For example, slot machine
500 could include a keypad, at which players enter either their
player identification numbers or their names along with a secured
password. Slot machine 500 could also include a device for measuring
player biometrics (e.g., fingerprint, voice, or retinal detection)
to identify players.
[0059] Commercially available player card tracking devices include,
for example, the Mastercom device available from Bally Manufacturing.
(See, for example, U.S. Pat. No. 5,429,361 to Raven et al.). Such
player tracking devices include a magnetic card reader and a numeric
keypad for entry of player information.
System Operation
[0060] In one embodiment of this invention, a player registers
in advance, for example, at a cashier's station, and obtains a tracking
card. The tracking card may be a magnetically coded tracking card
generally used at casinos, a stored value card, or other form of
smart card. In the preferred embodiment, only the player ID number
is stored on the player tracking card for security reasons. However,
other types of information, such as monetary value, can also be
stored on the player tracking card.
[0061] During registration, the player provides the various player
information shown in FIG. 3, such as name, address, credit card
number, and credit card expiration date. The casino assigns each
player a unique numeric ID number. The player also provides preferred
payment methods to define the preferred methods of receiving payouts
under the policy which will be described in detail below. Additionally,
the system maintains an indication of whether the player has an
insurance policy. The player registration, as well as the purchase
of insurance described below, may also take place at slot machine
500 or any game machine having an interactive interface.
[0062] FIG. 6 illustrates a process consistent with this invention
for purchasing gambling loss insurance. Initially, the player inserts
the tracking card into slot machine 500 (step 600). Card reader
532 of player card tracking device 530 reads the player ID stored
on the player tracking card, and player card tracking device 530
transmits the player ID to network server 200 (step 610). Network
server 200 looks up the player ID number in player database 245
and checks to see whether the player has an existing insurance policy
(step 620). If the player has an existing policy, the player may
either initiate a gambling session under that policy or purchase
another policy.
[0063] Regardless of whether the player has a policy, display 531
presents to the player information giving the player an option to
purchase a new or additional gambling loss insurance, at which point
the player may elect to establish an insurance policy (step 630).
Policy requirements may be established in various ways: entering
data directly into a key pad attached to slot machine 500; entering
data into a custom terminal on a casino floor; providing data to
a cashier who enters the requirements directly into network server
200; or entering the data using a telephone, which then transmits
the data to network server 200. For this embodiment, it will be
assumed the insurance policy is purchased from slot machine 500.
[0064] Next, the player defines the type of coverage by establishing
policy requirements of the insurance policy (step 640). The player
determines the loss at which the insurance policy pays a claim,
the amount of each bet, and the time period over which the insurance
policy is in effect.
[0065] There are a number of ways in which the amount of coverage
can be described (step 650). For example, an insurance policy with
a stated loss limit of five hundred dollars provides a payment to
the player if his losses for the covered gambling session exceed
five hundred dollars. The payment could be made if losses exceed
five hundred dollars at any time throughout the session, or only
if losses exceed five hundred dollars at the conclusion of the covered
gambling session. Alternatively, a graduated insurance payout scale
could allow for insurance payouts to increase as the size of the
loss increases. Rather than specifying an amount of loss, the insurance
policy could instead describe a rate of loss, such as one hundred
dollars per hour. Any insured gambling session in which losses exceeded
one hundred dollars for a given one hour period would result in
an insurance payout. Loss amounts could also represent a fraction
of the amount of money gambled during the insured session. A forty
percent loss limit, for example, would trigger an insurance payout
when losses for the session exceed forty percent of the total amount
bet during the session.
[0066] The player next describes the amount of each bet over the
insured period (step 660). A slot machine player, for example, might
indicate that he is playing a dollar machine and that he is playing
three coins per handle pull. The player may also specify the type
of slot machine that he is going to play in order to provide basic
information about the standard deviation of the outcomes to the
server.
[0067] After establishing an amount of loss to be covered, the
player selects the coverage time of the policy (step 670). For example,
the insurance policy could specify a start and stop time. Any gambling
within this time window is covered by the policy. Alternatively,
the player could select a number of handle pulls so that the insurance
period is based on activity rather than time. For example, the player
may establish a policy to cover the next one thousand handle pulls.
[0068] Insurance payouts can take a number of different forms.
They can be a fixed dollar amount, a fraction of all losses above
the loss limit, or a number of free plays on the machine.
[0069] Network server 200 stores the player selected coverage type
and the selected loss threshold in insurance database 250. Slot
machine 500 then transmits the policy requirements to network server
200 through network server interface 545.
[0070] FIG. 7 is a flowchart illustrating a process for calculating
a premium cost consistent with this invention. First, network server
200 stores the policy requirements received from slot machine 500,
along with the player ID, in insurance database 250 (step 700).
CPU 205 accesses a premium calculation algorithm pre-stored in storage
device 240 (step 710), and computes the premium costs based on the
policy requirements (step 720). Although many different algorithms
may be used to calculate the premium costs, insurance policies having
a high level of protection will generally require higher premiums.
If all else is equal, the premium amount increases as the amount
of the insurance payout increases. An insurance policy which pays
fifty dollars for any loss greater than five hundred dollars over
a one hour period will generally cost twice as much as a policy
which pays twenty five dollars for the same loss profile.
[0071] As loss limits increase, the premium amount declines, reflecting
the decreased probability that the player loss will trigger an insurance
payout.
[0072] Greater gambling activity will of course necessitate relatively
higher insurance premiums. A doubling of the time period of coverage,
for example, will increase the premium amount (although not necessarily
linearly). Higher bet amounts per handle pull will also result in
higher premium amounts. Insurance policies written on machines with
relatively high payout variance will also require higher insurance
premiums.
[0073] Once calculated, network server 200 transmits the premium
cost to slot machine 500 (step 730) which then displays the premium
cost on display 531 (step 740).
[0074] FIG. 8 is a flowchart illustrating a process consistent
with the invention for finalizing the purchase of an insurance policy.
The player evaluates the premium cost shown on display 531 and decides
whether the premium is acceptable (step 800). If the premium is
not acceptable to the player (step 810), the player may develop
new policy requirements (step 820). For example, if the premium
is too high, the player may increase the loss amount covered or
shorten the time period covered by the policy. Network server 200
then calculates a new premium based on the modified policy requirements
(step 825), as described in connection with FIG. 7. This new premium
amount if then transmitted to slot machine 500 for display to the
player.
[0075] If the premium is acceptable to the player (step 810), the
player transmits an acceptance to network server 200, providing
a confirmation to purchase the specified insurance policy (step
830). Network server 200 stores the premium amount in the premium
amount field of insurance database 250. Next, network server 200
generates a tracking number and appends it to the insurance policy
record as shown in FIG. 4 (step 840). Network server 200 receives
the premium from the player by directly debiting the player's credit
card account, accepting coins deposited by the player, or debiting
the player's winnings accrued at slot machine 500 (step 850). Once
sufficient payment is received for the premium, network server 200
stores the insurance policy record in insurance database 250 (step
855). At this point, network server 200 sets the status field of
the insurance policy in insurance database 250 to "active"
and adds the insurance policy tracking number to player database
245. Network server 200 also issues a policy tracking number and
stores it in insurance database 250.
[0076] Network server 200 also performs maintenance checks to ensure
that only active insurance policies are stored in insurance database
250. FIG. 9 is a flowchart illustrating a preferred process for
maintaining active insurance policies. First, network server 200
makes periodic searches through insurance database 250, retrieving
the coverage period of each insurance policy (step 900). CPU 205
checks whether the insurance has expired by comparing the coverage
period with the current date and time (step 910). If the current
date and time are beyond the coverage period, network server 200
changes the status field of the insurance policy from "active"
to "expired" in insurance database 250 (step 920). This
completes the insurance policy maintenance (step 930). For insurance
policies with a period of coverage defined by number of handle pulls,
CPU 205 checks to see whether the number of outcomes received exceeds
the amount of coverage.
[0077] Once an "active" insurance policy is stored in
insurance database 250, the player may conduct an insured gambling
session under the insurance policy as shown in FIG. 10. To begin
an insured gambling session, the player inserts the player tracking
card into player card tracking device 530 of slot machine 500 (step
1000). Slot machine 500 then transmits the player ID number stored
on the player tracking card to network server 200 (step 1010). If
network server 200 determines that the player has an active insurance
policy in insurance database 250, CPU 205 of network server 200
starts storing the player's gaming results in the results field
of insurance database 250.
[0078] During a gaming session at slot machine 500, the player
may choose to take a break and temporarily suspend the session without
decreasing the coverage period. Additionally, the player is free
to relocate to another machine or play a different game. To do so,
the player simply selects a "suspend" option, at which
point slot machine 500 transmits the current session record to network
server 200. Thereafter, a new session record is initiated at another
gaming machine. Regardless of the gaming machine, slot machine 500
transmits the tracked session record to network server 200 for processing
at the end of each gaming session (step 1020).
[0079] When network server 200 receives the session record from
slot machine 500, it processes the data under the insurance policy.
FIG. 11 is a flowchart illustrating a preferred process for determining
whether an insurance adjustment is necessary. First, network server
200 searches insurance database 250 for the player ID (step 1100).
If the player ID number is not found in insurance database 250 (step
1110), no insurance adjustment is necessary because the player does
not have an active policy (step 1120).
[0080] If the player ID is found in insurance database 250, network
server 200 accesses insurance database 250 to see whether the insurance
policy is currently active (step 1130). If the insurance policy
is not currently active, no insurance adjustment is necessary, and
the player is appropriately notified (step 1140). If the insurance
policy is "active," however, and if these gambling results
conclude the coverage period specified in the insurance policy,
an insurance adjustment, or payout, is necessary (step 1150). Additionally,
the result field in insurance database 250 is updated with the current
slot machine session result (step 1160).
[0081] FIG. 12 is a flowchart illustrating a preferred process
for transmitting an insurance payout to the player. To make a payout,
network server 200 first analyzes the results stored in the gambling
session results field of insurance database 250 (step 1200). If
the loss does not exceed the loss threshold stored in insurance
database 250, no insurance adjustment is necessary. If the loss
meets or exceeds the specified threshold, CPU 205 of network server
200 calculates an appropriate insurance payout amount due the player
according to the insurance policy requirements (step 1210). Once
the insurance payout amount is calculated, the payout is made according
to the method specified in the complimentary information field of
player database 245.
[0082] In the preferred embodiment, network server 200 updates
the earned payout field of player database 245 (step 1220). Thereafter,
the player may collect the insurance payout at any time at a cashier's
station (step 1230). Paying the player at a location away from a
gaming machine or table game helps discourage players from immediately
spending the payout and may be a preferred option amongst the players.
Alternatively, the player may choose to transfer the payout directly
to his credit card. In that case, network server 200 directly credits
the player's credit card by the amount of the payout. Additionally,
the player may choose to transmit the payout directly to slot machine
500, in which case the compensation is disbursed through the payout
tray of slot machine 500. Regardless of the payout method, network
server 200 updates insurance database 250 to reflect that a payment
has been made.
Conclusion
[0083] Systems and methods consistent with the present invention
provide gambling loss insurance policies to players and offer protection
against unpredictable gambling losses. Additionally, such systems
and methods provide a way of automatically processing gambling sessions
covered by the gambling loss insurance policies.
[0084] It will be apparent to those skilled in the art that various
modifications and variations can be made in the present invention
and a construction of the invention without departing from the scope
or spirit of the invention. Other embodiments of the invention will
be apparent to those skilled in the art from consideration of the
specification and practice of the invention disclosed herein. The
specification and examples should be considered as exemplary only,
with the true scope and spirit of the invention indicated by the
following claims.
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