Book Keeping the world-over uses the priciples of debit and credit ledgers. Yet, in the online gaming industry, when it involves commission earned by casino affiliates, accounting principles many centuries old, are substituted with quasi calculation deductions.
As an example, so were all on the same page, lets use a simple business partnership with two (2) owners. Partner-Bob holds a 75% stake. Partner-Bill holds a 25% stake in this business partnership. At the end EOM (end of month), expenses are paid.
- Partner-Bob pays 75% of these business expenses
- Partner-Bill pays 25% of these business expenses
When all expenses to run the business are deducted, what’s left is the Net monthly profit.
- Partner-Bob receives 75% of that monthly Net profit
- Partner-Bill receives 25% of that monthly Net profit
Ok, that’s a simple example. But I’m sure you get the picture, right!
Granted casino affiliates are essentially sub contractors and, they do not hold a stake, or ownership in a casino per se. However, they earn a percentage based commission on player losses. Commission on the casino’s NGR (net gaming profit) of their referred active players.
While commission percentages differ, the above example of the business partners Bob and Bill, and their % stake, is no different to that of casino affiliate partnerships. So if an affiliate earns 25% commission, then why do most casino affiliate programs hammer their partners with 100% of GGR (gross gaming revenue… aka gross business revenue)? A rhetorical question!
As a side note, if you’ve ever dealt with a company who dodges questions, or plays semantics, an identical modus operandi is usually what affiliates deal with on a daily basis, from affiliate managers and, the programs they partner. Most people would logically assume that affiliate can simply audit their monthly stats data and, pin point wrong deductions.
Sadly, most casino programs leave out the most important item from monthly revenue stats. They are the player withdrawals. We can all speculate why this is done. Frankly, I’m sure it’s not an oversight. Most casino affiliate programs don’t want affiliates to join-the-dots.
Occasionally though, and maybe as fate would have it; she like nothing more than to level the fairness scales. A player’s win is rolled over to the next month. And, this player doesn’t make a deposit that month, yet wins again. In instance like this, one notices a very odd set of accounting rules being used.
EG – Lets say a player deposits $500 in March and wins. At the EOM it’s a negative NGR of $-$500. Meaning, that player wins $1,000. So that $1,000 is deducted from the total NGR. In April $500 of that $1,00 win is rolled over into the account. That player does not deposit, but again wins. This time $2,000. Instead of only $1,500 being deducted from NGR, the entire $2,000 is deducted.
Hence, the $500 that was rolled over from March to April, is once again deducted from NGR. That’s called double dipping. It’s a common practive for most casino affiliate programs to scam their partners, with bogus accounting deductions.
Having been an affiliate in the online casino industry for the best part of 17 years, I’ve been a victim of these affiliate program scams too. Reiterating, in most cases it’s impossible to prove.
Over the years I’ve established a few solid and trusted relationships with upper management of casino groups and, their affiliate programs. And, I’ve been told from varied sources, affiliate stats are shaved by dubious accounting deductions. I’ve heard this story numerous times, from parties with no agenda to spread untruths. Other affiliate old timers have been told similar stories.
Casino affiliate commission shaving, is a common practice. Just because most programs do it, doesn’t mean it’s ok. It is criminal fraud – stealing rightful commissions. Though, and sadly, the online casino industry has always been its own-worst-enemy. Whatever your earning on a monthly basis, 9 times out of 10, you probably should be receiving double that commission figure.
It shouldn’t be like this. But, sadly, the majority of casino affiliates are akin to Ukraine Circus Bears. They’ll growl occasionally but, that’s about it. Rest of the time they cope-it-sweet! Maybe my background is different. I’m outspoken about the truth and, the things that matter. DOCH certainly atests my ethical stance within the online gaming inudstry.
If your a casino affiliate reading this, then I hope you have the guts to stand up and be counted. Back in my GPWA days, before I was uncerimounously kicked-out (2011) for, standing up against Michael Corfman’s dubious involvement in a link wheel scheme to gaming the Google alog. There were a handful of other affiliates including myself, who were also outspoken. However, it seemed, our combined voices were a thorn in the side of the GPWA CEO’s wallet. Being banned at the GPWA, meant the last person of the ‘boat rockers’ had been taken care of.
Since then the Gambling Portal Webmaster Association has willingly accepted paid sponsorship from some very unethical and, dodgy casino affiliate programs. Seems as long as the money is the right colour, then nothing else matters. As I’ve said, this industry is its “own worst enemy”.