Lottery insurance method

Abstract

A method of conducting a lottery wherein lottery participants may choose to purchase insured lottery tickets is disclosed. The insurance purchased with an insured ticket guarantees that if the insured ticket turns out to be a winning ticket, the purchaser is entitled to his share of the jackpot immediately, rather than being forced to accept a smaller amount immediately or the full amount in installments over time. In a particular embodiment, insurance may be purchased that guarantees a winner will immediately be paid, in addition to his share of the jackpot, an additional amount equal to at least a portion of the income or other taxes payable on the jackpot.

1 . A method of conducting a lottery comprising the steps of: 
 (1) determining a jackpot prize for a lottery game in which ticket purchasers select at least one number combination for each lottery ticket purchased;    (2) offering non-insured tickets for the lottery game to ticket purchasers at a first price, and tax insured tickets for the lottery game to ticket purchasers at a second price higher than the first price;    (3) paying a first amount to each holder of a non-insured winning lottery ticket, said first amount equal to said ticket purchaser=s share of said jackpot; and    (4) paying a second amount to each holder of a tax insured winning lottery ticket, said second amount equal to said ticket purchaser=s share of said jackpot plus at least a portion of the taxes payable on said ticket purchaser=s share of said jackpot.    
   
   
       2 . The method of  claim 1  wherein said second payout time occurs immediately after said insured winning lottery ticket is identified.  
   
   
       3 . The method of  claim 1  further including the step of offering a tax insurance upgrade for sale at a first upgrade price to a purchaser of a non-insured lottery ticket, said tax insurance upgrade converting said non-insured lottery ticket to a tax insured lottery ticket, said tax insurance upgrade available for purchase until a cutoff time, said cutoff time prior to said payout time.  
   
   
       4 . The method of  claim 3  wherein said first upgrade price is equal to the difference between said first price and said second price.  
   
   
       5 . The method of  claim 3 , further including the step of offering a payout insurance upgrade for sale at a second upgrade price to a purchaser of one of said tax insured lottery tickets and said non-insured lottery tickets, said payout insurance upgrade converting said tax insured lottery ticket or said non-insured lottery ticket to a payout insured lottery ticket, said payout insurance upgrade available for purchase until said cutoff time.  
   
   
       6 . A method of conducting a lottery comprising the steps of: 
 (1) distributing lottery tickets to lottery participants for a lottery game, said tickets for the lottery game including tax insured tickets and non-tax insured tickets;    (2) determining whether a particular ticket is a paying ticket for the lottery game;    (3) paying the award amount plus an additional amount equal to at least a portion of the taxes payable on the award amount if the paying ticket is tax insured; and    (4) paying the award amount without an additional amount for taxes if the paying ticket is non-tax insured.    
   
   
       7 . The method of  claim 1  further including the step of offering a tax insurance upgrade for sale at a first upgrade price to a purchaser of a non-insured lottery ticket, said tax insurance upgrade converting said non-insured lottery ticket to a tax insured lottery ticket, said tax insurance upgrade available for purchase until a cutoff time, said cutoff time prior to said payout time.  
   
   
       8 . The method of  claim 7 , further including the step of offering a payout insurance upgrade for sale at a second upgrade price to a purchaser of one of said tax insured lottery tickets and said non-insured lottery tickets, said payout insurance upgrade converting said tax insured lottery ticket or said non-insured lottery ticket to a payout insured lottery ticket, said payout insurance upgrade available for purchase until said cutoff time.  
   
   
       9 . A method of conducting a single lottery game comprising the steps of: 
 (1) selling tax-insured and non-tax insured lottery tickets for a single lottery game in which ticket purchasers select at least one number combination for each lottery ticket purchased within the single lottery game;    (2) awarding to a holder of a tax-insured paying ticket an amount equal to the prize amount plus an amount equal to at least a portion of the taxes for the prize; and    (3) awarding to a holder of a non-tax-insured paying ticket an amount equal to the prize amount without any additional amount for taxes.    
   
   
       10 . The method of  claim 9 , further including the step of offering a tax insurance upgrade for sale at a tax insurance upgrade price to a purchaser of a non-tax insured lottery ticket, said tax insurance upgrade converting said non-tax insured lottery ticket to a tax insured lottery ticket.