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  1. #1
    freesamurai is offline New Member
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    Default Can someone help me with wager-share model???

    hello there.
    i am registered for rewardsaffiliate 2 days ago but i am having problems to understand how their True 35% Wager Model works.

    can somone help me with this?
    i sent them an email but they have not replied yet and i also have seen this example page but it is simply confunsing me more http://www.rewardsaffiliates.com/mai...ring-intro.asp

    so let's make an exemple...let'say one man referred by me deposit 100$ and play on black in roulette...then he lose or win is 100$ and stop playing.
    what will be my profit in this????
    have not he wagered 100%?so my profit should be 35$?

    first i supposed it was 35% of wagered money so 35% of 100= 35$
    but after i read that example page i posted above i got a little confused.

    can anyone explain to me how wager model really work?
    for exemple....what would be my profit for that man that played his 100$ and then stopped to play?
    sorry if my english is not good enough and i am a little noob in this

    thanx

  2. #2
    CityGuard's Avatar
    CityGuard is offline Former GPWA Program Manager
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    The idea is that instead of getting a percentage of actual loss you get a percentage of theoretical loss based on the house edge.

    Someone who deposits $100 is likely to bet much more than $100 before losing it all because some of the bets will be wins. The amount bet is based on total bets placed for all hands/pulls/spins/whatever the specific game uses to measure one play. So, if you bet $5 on a slot spin and win $4 back, then bet that four on the next spin, you've wagered $9 total not just the $5 that was your original money.

    In a game with a 10% house edge the overall average amount bet in order to lose $100 would be $1,000. However, someone with an unlucky streak might lose more quickly than average and someone with a lucky streak might bet more than the average before losing the $100.

    So on a game with a 10% house edge the $1,000 bet would produce $100 theoretical loss, and the True Wager commission would be 35% of that theoretical loss amount (35% of $100 = $35). On a game with a 5% house edge the average person would bet $2,000 in order to lose $100. But for some players it will be higher and for some players it will be lower since a player who wins initially will be able to play for longer.

    I'm not sure what house edge blackjack is considered to have by Rewards Affiliates, since the house edge in blackjack is significantly impacted by the playing strategy used.
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  4. #3
    freesamurai is offline New Member
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    Default ok....

    Quote Originally Posted by CityGuard View Post
    The idea is that instead of getting a percentage of actual loss you get a percentage of theoretical loss based on the house edge.

    Someone who deposits $100 is likely to bet much more than $100 before losing it all because some of the bets will be wins. The amount bet is based on total bets placed for all hands/pulls/spins/whatever the specific game uses to measure one play. So, if you bet $5 on a slot spin and win $4 back, then bet that four on the next spin, you've wagered $9 total not just the $5 that was your original money.

    In a game with a 10% house edge the overall average amount bet in order to lose $100 would be $1,000. However, someone with an unlucky streak might lose more quickly than average and someone with a lucky streak might bet more than the average before losing the $100.

    So on a game with a 10% house edge the $1,000 bet would produce $100 theoretical loss, and the True Wager commission would be 35% of that theoretical loss amount (35% of $100 = $35). On a game with a 5% house edge the average person would bet $2,000 in order to lose $100. But for some players it will be higher and for some players it will be lower since a player who wins initially will be able to play for longer.

    I'm not sure what house edge blackjack is considered to have by Rewards Affiliates, since the house edge in blackjack is significantly impacted by the playing strategy used.

    on their example page i read this:

    How commission is calculated:
    Margins were taken based on PWC Payout Reports, then Payout is calculated at 35% of margin, hence margin and payout percentages below:

    <table align="left" border="0" cellpadding="1" cellspacing="1" width="100%"><tbody><tr></tr> <tr align="center"> <td>
    </td> <td style="font-size: 0.7em;">Margin</td> <td style="font-size: 0.7em;">Payout</td> </tr> <tr> <td style="padding-right: 10px; font-size: 0.7em;" align="right">Table Non Blackjack</td> <td style="font-size: 0.7em;" align="center">2.57%</td> <td style="font-size: 0.7em;" align="center">0.90%</td> </tr> <tr> <td style="padding-right: 10px; font-size: 0.7em;" align="right">Slots</td> <td style="font-size: 0.7em;" align="center">3.71%</td> <td style="font-size: 0.7em;" align="center">1.30%</td> </tr> <tr> <td style="padding-right: 10px; font-size: 0.7em;" align="right">Video Poker</td> <td style="font-size: 0.7em;" align="center">0.94%</td> <td style="font-size: 0.7em;" align="center">0.33%</td> </tr> <tr> <td style="padding-right: 10px; font-size: 0.7em;" align="right">Blackjack</td> <td style="font-size: 0.7em;" align="center">1.26%</td> <td style="font-size: 0.7em;" align="center">0.44%
    </td> </tr> <tr> <td colspan="3" style="font-size: 0.7em;"> </td></tr></tbody></table>









    so what thy call margin is what you define "house edge"....right?

    why are these margins so low???
    are they credible margins???

  5. #4
    CityGuard's Avatar
    CityGuard is offline Former GPWA Program Manager
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    House edge is the statistical average loss for a bet in a given game. I'd assumed the true wager share was based on theoretical loss based on house edge, although based on the description you posted it looks like Margin is slightly different. House edge is theoretical, but it looks like Margin is based on actual numbers determined by an auditing firm (PriceWaterhouseCoopers). Margin is the actual amount of advantage the house experienced in a time period and house edge is the theoretical advantage the house should experience, so Margin should be close to the house edge and really my explanation above should have used the phrase Margin.

    In terms of credibility, the margins are reported by a large auditing agency that has a reputation to protect so I think they are credible. The slot percentage is the only one that I'm familiar with other site's numbers for, and that looks about normal to me. I know land-based slot machines will tend to have a higher house edge (5%-10% typical, with a legal maximum house edge in Vegas of 25%...but only the slots at the airport could get away with being that tight). Since it is easy to switch to a different casino when online the house edge for online slots tends to be a bit lower than for land-based slots. So having 3.71% margin is not that surprising. The table games number is a bit surprising to me since I mostly think of European roulette which has about a 5% house edge, but if they offer American roulette (which has half the house edge of European roulette) then it looks right, but it is probably a result of some of the lower-house-edge bets being the most popular ones at the tables (the odds bet at craps, plus some other lower-house-edge bets with other games).

    But my comments are really based on looking at the theory/math behind the model rather than digging into our individual data from working with them (since my colleagues Eric and Rebecca handle Casino City's commission stats).
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  6. #5
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    Hi all

    Cityguard your explanation is correct... The model is based on theoretical loss rather than actual loss just like they calculate casino hosts commission in Vegas and other casinos..

    We got the margins by taking the payout report for 1 year over every casino and taking the average of the margins.. So this is an average margin, although accurate based on the payout reports.

    freesamurai - its possible your email went to my spam box (and was therefore deleted) as I don't see it in my inbox.

    Let me know if you have any questions - you can contact me via IM (MSN/Yahoo/ICQ/AIM).

    Cheers
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  7. #6
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    As FreeSamauri has english as a second language let me try to put it a simplier way.

    How much the player wins or loses DOES NOT MATTER in the "wager share" model. What matters is how much the player wagered and on which games.

    You will make 35% of the edge that the casino has. This edge is listed in your table called MARGIN and your share is called the PAYOUT. Yes the margins are credible.

    So if the player plays slots then you will make 1.30% PAYOUT on his wagers.

    If he wagers $100 on one spin and wins/losses then you will make $1.30
    If he wagers $1,000 on slots then you will make $13
    If he wagers $10,000 on slots then you will make $130

    Even if the players wins, or only loses a small amount - you will still make your "Wager-share" on each and every player.

    I hope that helps.

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  9. #7
    aksana's Avatar
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    Rewards Affiliates have a very interesting model, it took me some time to understand it.
    But it looks really attractive!

  10. #8
    CityGuard's Avatar
    CityGuard is offline Former GPWA Program Manager
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    Quote Originally Posted by TheGooner View Post
    As FreeSamauri has english as a second language let me try to put it a simplier way.
    Yes, thank you Gooner. I can sometimes make things a bit complicated.
    I have left the industry and earned a law degree at Indiana University Bloomington, Maurer School of Law. Here are ways to stay in touch with me:
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