I received a similar reply, but am not sure what it means. I wrote back to PartyPoker asking what the payout is on a hypothetical MGR of $12,000. Normally it would be 25% of $12,000 = $3,000.
If it’s going to be 20% (instead of 25%) of $12,000, that makes it $2,400! Alternatively, if they’re going to make it 25%*$12,000*0.95, then that makes it $2,850.
In either case, though, this 5% begs “why”? They’re already making 75%+ of the revenues, and be able to take their costs from that share. If the rev-share was 75% for us, and 25% for them, then that would be a lot different.
In a highly competitive market, they’d be motivating people to move their valuable traffic elsewhere.