Abstract: A method for operating a central processor to provide a networked exchange in which one or more users can participate in a game of chance, through a hosted auction. The method comprising selection of a pre-scheduled competition that emulates a real-world event upon which to base the auction, establishing the names of entities in the auction that emulate the real-world event, selecting a payout schedule for distributions of the auction proceeds based on results of the real-world event, notifying potential bidders of the auction event, accepting bids from various bidders in an auction process that results in ownership rights to game entities awarded to winning bidders, providing notification of winning and losing bidders, determining winners and providing for payout distributions based on the payout schedule.