(1) "Calcutta pool" means a form of auction pool wherein participants in the pool bid on the competitors in an underlying event with each successful bidder wagering the amount he has bid on the competitor he has "purchased;" at the conclusion of the underlying event the pool of wagers placed on all competitors is divided amongst the pool participants who have "purchased" the winners of the underlying event according to the rules of the particular Calcutta pool.
(2) "Competitor" means an entrant in the underlying event upon which a Calcutta pool is based and who is "purchased" or wagered upon by a participant in the Calcutta pool.
(3) "Participant" means a person who bids/wagers in a Calcutta pool, who "purchases" a competitor in the event underlying the pool, and who stands to win according to the rules of the pool.
(4) "Prize" means anything of value awarded a winner of a Calcutta pool or anything of value awarded a winner of an underlying event from the Calcutta pool based on that event.
(5) "Proceeds" means the amount left in a Calcutta pool after administrative costs and prizes have been paid.
(6) "Purchase" means to earn the right to wager in a Calcutta pool by submitting the highest bid on a particular competitor in the underlying event.
(7) "Underlying event" means an actual game, tournament, or contest with more than two entrants which is wagered upon by the participants in a Calcutta pool. Fictitious or contrived events shall not be considered underlying events for purposes of Calcutta pool wagering.