A fractional denomination on-line gaming system and method of playing for use in all lottery, commercial game, promotional and other game applications. The preferred method of playing allows a consumer to purchase a fractional denomination share of a full unit game ticket, in an amount equal to the change the customer would have received back from any purchase of goods or services from a retailer authorized to offer the game. The method of playing includes a gaming system to exchange a customer's change for a fractional denomination game ticket for a chance at winning a prize. Players holding winning tickets will each receive a proportion of the overall prize based on the value of their wager relative to the total amount wagered by all winning tickets. Fractional denomination game tickets may play at equal odds of winning a prize or at weighted odds based on the fractional denomination share of a full unit game ticket entry. The lottery sponsor will determine the winning numbers according to the rules of the particular game. The game can incorporate the existing equipment of the lottery sponsor and requires programming and software modifications for processing fractional denomination game tickets. The ticket is printed in a format that facilitates a fractional denomination game ticket. The invention and method of playing can be adapted for use in other games of chance, games of skill and other gaming categories.