Hi all,
I’m going to provide some examples following the above examples to demonstrate how it works:
Firstly, let’s say on one brand, a player generates negative netwin of $100,000, while the rest of the player base on that brand generates positive netwin of $50,000.
The amount that we will recover from that player in future months is $50,000, not $100,000. In a case where the player never plays again, then we never recover those funds, yet the affiliate will still be starting the next month/s on zero, meaning that we take the knock for the -$50,000.
Ultimately the High-Roller Policy is structured in such a way that it is more beneficial to the affiliate than to the affiliate program for this reason.
Using the last example giving by Bet4You, the calculations would be as follows:
August 2014
# Player1 - loses $ 1,000
# Player2 - loses $ 2,000
# Player3 - wins $100,000 (-$97,000 would be quarantined – the initial month of the quarantine being August)
Rev share cal: $1,000 netwin + $2,000 netwin subtracted by -$100,000 netwin = -$97,000 (no commission paid)
September 2014
# Player1 - loses $ 1,000
# Player2 - loses $ 2,000
# Player3 losses $50,000 (- $47,000 is still quarantined)
Rev share cal: ($1,000 netwin + $2,000 netwin) * 30% = $900 commission paid.
For an affiliate who has a large player base contributing to their commission, they are unlikely to be affected by the high-roller policy, as other players are likely to absorb the big win. In these cases, they will earn revenue share on any balance that the big winners plays back in subsequent months. For example:
August 2014
# Players 1 to 99 - lose $200,000
# Player100 wins $100,000 ($0 quarantined)
Rev share cal: ($200,000 netwin subtracted by -$100,000 netwin = $100,000 netwin) * 30% = $30,000 commission paid.
September 2014
# Players 1 to 99 - lose $200,000
# Player100 - loses $100,000
Rev share cal: ($200,000 netwin + $100,000 netwin) * 30% = $90,000 commission paid.
To reiterate our high-roller policy again:
High-Roller Policy
7.14 In any given month, if a Customer generates a negative net win of at least $10,000 he/she will be deemed to be, for the purposes of this section, a 'High-Roller'.
7.15 If the aggregate Net Win for the Affiliate, in that month, for a Merchant Brand is negative $2,000 or greater, then the High-Roller policy as set out hereunder, will apply:
7.15.1 The negative Net Win generated by the High-Roller will be carried forward and offset against future Net Win generated by that High-Roller;
7.15.2 The negative balance carried forward cannot be set-off against other Customer's Net Win;
7.15.3 The negative balance carried forward cannot be greater than the total aggregate negative Net Win for the Affiliate, for that month;
7.15.4 The negative balance of a High-Roller will be reduced by future positive Net Win that they generate in subsequent months;
7.15.5 A negative balance will not be increased by future negative Net Win unless the High-Roller meets the qualifying criteria in subsequent months.
We understand that for some affiliates it can be complicated on their accounts, in which cases we are quite willing to talk with you and explain the situation specific to your own account.
Please contact us directly if you have any queries.
Thanks
Andrew