Slots Jackpots and Affiliate Charges

[PROFRBcom]

How common is it for affiliates to be charged when a referred player hits a networked slots jackpot?

How fair is it?

I'd love to hear your thoughts since one of our players just binked a $205,000 USD slots jackpot and our affiliate partner hit us with a $165,000 NGR deduction (for all I know they hit us with the full deduction but the player may have lost some of it back in that reporting period).

The slot that was hit was "Gold Rush Gus"

 

[CL-Ed]

It isn't common. It is grossly unfair because the jackpot is funded by player contributions and isn't revenue because it never belongs to the house. Deducting from the affiliate revenue is a convenient way of double dipping to claw some of it back. It is a similar situation to programs that deduct chargebacks from commission instead of gross revenue.

I'm guessing you're referring to Bovada / Betting Partners / whatever they call themselves now. We got stung by the same thing recently. Someone won over $600k and it put us into a huge negative. Fortunately it was at one of their other brands that does not have negative carryover so it cleared the next month.

 

[AussieDave]

It isn't common. It is grossly unfair because the jackpot is funded by player contributions and isn't revenue because it never belongs to the house. Deducting from the affiliate revenue is a convenient way of double dipping to claw some of it back. It is a similar situation to programs that deduct chargebacks from commission instead of gross revenue.

Well put... Aree on what CL-Ed stated

 

[RyanWeb]

While not fair, talk with your AM, I have found if they have negative carryover and its an unreasonable amount, they will often forgive the negative balance after a few months, or isolate it to just that player.

Its in their best interest to work with you, since at the end of the day, if the amount of the negative balance is unreasonable, you can always just replace the program on your site and start sending traffic elsewhere.

It helps to have a relationship with your AMs I guess, but still.. Send an email making it sound like its in their best interest to work with you... At the end of the day its just about numbers for both sides..

"It's Not Personal It's Strictly Business..."

 

[Lucy CBC]

It is unfair, but it can happen with some programs...it's important that they do not carry over the negative of course. That's why we usually work only with NNCO brands mostly...When they do carry the negative, even so, exceptions can be discussed, usually they're willing to negotiate, compromise in the name of a long term partnership etc...I've rarely met completely absurd and unbeatable terms.