When an operator like Entain updates its affiliate terms, it highlights the delicate balance of iGaming partnerships. At the heart of these agreements lies the revshare model, a commission structure that has powered industry growth.
Unlike a one-off payment, a revenue share deal creates a long-term relationship. An affiliate earns a percentage of the net revenue from a referred player for their lifetime, creating an ongoing income stream.
How Revshare is Calculated
The basis for any revshare calculation is Net Gaming Revenue (NGR). This is not a player’s deposits; it is gross gaming revenue (stakes minus winnings) after the operator deducts direct costs.
These deductions typically include bonuses, payment processing fees, and gambling duties. What remains is the NGR, the figure upon which commission is based. It is vital to scrutinise an operator's terms to understand these deductions.
Commission Tiers and Conditions
Most affiliate programmes use a tiered structure to incentivise performance, with rates rising based on the number of new depositing players sent monthly.
A crucial condition is negative carryover. If a player has a large win, the affiliate's account can go into a negative balance. Programmes with 'no negative carryover' reset this balance to zero each month, a highly favourable term.
Revshare vs. CPA and Hybrid Deals
The main alternative to revshare is Cost Per Acquisition (CPA), a fixed fee for each new depositor. A hybrid deal combines a smaller CPA with a lower revshare percentage.
CPA offers predictable income but cuts off future earnings from high-value players. In Great Britain, where UK Gambling Commission affordability rules impact player value, forecasting revshare earnings requires careful analysis. All marketing must promote responsible gambling for adults (18+).
The success of a revenue share agreement rests on transparency. Reputable affiliate programmes provide detailed reporting and clear definitions of NGR.
As the industry matures, successful affiliates favour partners who offer fair terms and reliable value over those with high headline rates and hidden deductions.