Feedback on the implementation of a mediation service on casino affiliate disputes.

[TheMediator]

As a mediator used to international commercial disputes I guessed the affiliate programs might be bound to generate controversies from time to time. From both sides it seems paramount to cut down odds of litigation because result is uncertain and also such effects are exponential: one party risks being blacklisted from sites and the other party risks one resolution leading to a big financial downturn as the word spreads and other affected individuals follow up (such one stipulation being declared void or a calculation method revised).

Now, would you think parties could have an interest in a mediation clause being adopted to enjoy:

a) Confidentiality of the process.

b) Control about the scope of the dispute.

c) Celerity over litigation.

d) Cost conscious process.

e) Preservation of the business link and trust.


This is not a direct pitch, the purpose is to test the waters, get an educated opinion from the parties themselves. Does it exist, would it work, any other system in place?

 

[nwalker]

It sounds like a great idea, but currently, affiliate programs have protection because they know that 99.9% of affiliates don't have the funds to pursue unfair contract terms in court.

Class actions have been discussed in the past, but none get off the ground because a) no one organises them, b) Affiliates don't want to pay the sums involved.

Mediation only works if there is a threat of going to court and the parties involved already have their finances sorted out.

I only know of one case that got to court, in which the affiliate lost and burned by the fees, which was probably enough to scare everyone else off doing the same.

 

[TheMediator]

Yes, I do agree about shortcomings, mostly. In my country the big thing now is account closure stipulations as pro players want that clause voided and their accounts reinstated. Litigation goes well above 1k€ in legal fees but the incentive to pony up the money is there because those players are banned for a reason, they do make significant money.

Now, when it comes to this field-affiliate programs- I do think there are a couple snippets which could make sense:

a) There is market pressure seller side. Affiliate programs need to be competitive or players could easily look for greener pastures. There is an incentive for new actors to implement ADRs such as mediation or arbitration. Customer service is not adequate for the task and the mere possibility to discuss these matters is a competitive advantage. Litigation is quite a marketing black eye whenever you are not a whale.

b) Fees are nowhere near close to litigation as parties do not even need to use legal advice for many issues. Thinking of mediation as a preparation for the battle is not always the point, it is a great retention tool. It could also be for both parties a KYC or know your market device, the purpose being to gather information about the long run and current state of affairs. It works as a canary in the coal mine for untapped issues and could let both parties find the room to strike a balanced deal.

For really minor stuff like interpretation of a given stipulation or running some modest numbers I could even see the big fish paying the full process instead of splitting the bill. An online mediation of such depth would be quite irrelevant when it comes to fees.

 

[AussieDave]

Given your logo here and on Linkedin matches, this must be you:
linkedin.com/company/jose-garriga-abogados/

@TheMediator - please read, understand and absorb what I'm about to share with you...

I've been in this gig, as an affiliate, for 24+ years. Over this time, there has been so many attempts at creating what your speaking of, which have ALL failed.

They all failed, not from lack of motivation, passion, cash or a strong-belief that affiliates need a 'Big Brother' per se. No... they failed because getting affiliates to work together, is akin to trying to herd cats.

Even folks with a long and trusted history in the affiliate-industry, who are straight as an arrow, and their word is their promise, have ALL failed to make headway.

Spend some time trawling through 2 decades of forum posts here and at GPWA, these will certainly give you a heads-up about how most affiliates think/operate, but worse, how a large % of programs hold, what seems like a sheer contempt for their affiliate partners.

Frankly there is no other online-industry which treats affiliates so poorly. Yet it continues.

What you seem to missing here by making comparisons to other industries is, the igaming industry was founded on the principles of the Wild West. Even today with licensing jurisdictions and what not, the industry is STILL very much like the Wild West.

You speak about affiliate "big fish". This clearly tells me the depth of your inexperienced, when dealing with igaming affiliates. The Big Fish don't generally require a mediation service. I'm yet to hear of a BIG FISH being shafted by an igaming affiliate program. And if they ever were, they'd have their own legal council, they wouldn't need a mediation service.

NB - I don't know what you consider to be a decent income each month, but it's just not Big Fish who make a substantial living from this industry. 1 person affiliate's - chief bottle washer and all. These guys can be making $500K+ per year. NOT the chump change you seem to think the non-big-fish make.

I only know of one case that got to court, in which the affiliate lost and burned by the fees, which was probably enough to scare everyone else off doing the same.

Webzcas took legal action against Affiliate Edge because they'd retroactively slashed affiliate commissions to 10%. The case, as far as I can recall, was initially brought before a small-claims court, where, neither party could have legal representation. However, it all backfired due to a clause in the T&C's affiliate/program contract, which, made the case a moot point, and instead was referred to the magistrates court.

At that point legal council was permitted. AE had a shit-ton of cash (Millions) to lose, if they lost. In the end, Webzcas even though he'd promote AE for years, and sent a large, productive player base, and he'd been screwed by Affiliate Edge for literally 10's of thousands, and players stolen in the process, these AE crooks managed to get the court to rule in their favour.

Not only did that rub salt into an open wound, but he also had to wave goodbye to ALL his rightful future income, but also had to pay the Affiliate Edge Crooks, £10,000 in legal/court costs.

(Affiliate contracts are NOT fair or just. In fact most, if not all, are unconscionable traps, with clauses designed to entrap, and hold affiliate partners to ransom. Definitely not establishing a fair business deal for all).
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With all due respect, your a noob here and it seems an industry noob too. My advice, stick to what you know best. Dipping you toes in this industry, will likely get them chewed-off, if not your foot and leg too

 

[TheMediator]

Very good, detailed reply. Much appreciated.