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Reply To: Why wager share is bad for affiliates

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#693542
Anonymous
Inactive
BJF wrote:
One way that may help people imagine this is if they are players at all. Imagine you have a slot player who deposits $100, and loses it. Under the old model you earn $35. Under the new model, for you to earn $35 that slot play would have to give about $2700 worth of action for you to make $35. $2700 on that $100 deposit. When you play does your $100 last that long?

There seems to be some confusion about deposit amounts. Deposit amounts are not made available to the affiliate program – never have. The RevShare model is based on profit to the casino, which is certainly not the amount deposited.

Re: Getting $2700 in wagering from $100 in deposit. I know the amount of wager looks large, but you’d be surprised how many times players turn their money over as they play. It gets big … and fast!

To clarify this point, let’s look at the facts. It is a fact that over all the casino’s in our group (excluding recent acquisitions not owned at the time) over the entire year of 2005, the average amount of wager on $100 deposit is:

Here’s the margin/payout table:
Margin Payout
Table Non Blackjack 2.57% 0.90%
Slots 3.71% 1.30%
Video Poker 0.94% 0.33%
Blackjack 1.26% 0.44%

So, $100 in deposit on these game types yielded how much wagering on the average:

Table Non Blackjack: $100 / 2.57% = 3891.05 wagered from the $100 deposit.
Aff Comm: $3,891.05 * 0.9% = $35.02

Slots: $100 / 3.71% = $2,695.42 wagered from the $100 deposit.
Aff Comm: $2,695.42 * 1.3% = $35.04

Video Poker: $100 / 0.94% = $10,638.30 wagered from the $100 deposit.
Aff Comm: $10,638.30 * .33% = $35.11

Blackjack: $100 / 1.26% = 7936.51 wagered from the $100 deposit.
Aff Comm: $7,936.51 * .44% = $34.92

You can see the totals are slightly off because I rounded to the nearest 100th, but the basic principle is there. Anyway, you don’t have to believe me that these are fact, just ask the independent auditors (xhttp://www.blackjackballroom.com/security/pwc.asp) ;)