Gross Revenue vs Net Gaming

[ocreditor]

Affiliate earnings (aka revenue share) are derived from gross revenue or net gaming/revenue, but can someone please explain what's the actual difference (if any) between gross revenue and net gaming?

Thanks

[AE-Martyn]

The gross is not the actual profit, it can include non cash, coupons, comp points and any further deductions. The figure after deductions is the net win and the final profit to be shared.

[pinkytoe]

Be careful of affiliate programs offering 50%+ rev share - many times 50% relates to gross and includes loads of deductions and you end up on effectively 25% net rev share.

[PROFRBcom]

Be careful of affiliate programs offering 50%+ rev share - many times 50% relates to gross and includes loads of deductions and you end up on effectively 25% net rev share.

Or less if you're in the poker world dealing with all these new age secret winning vs losing player formulas!

[golfbettingsystem]

Talking of deductions from gross to net revenue, would it be unreasonable for all affiliate programs to be transparent and publish their % deductions? In this post-POCT world understanding what our net revenue share percentage is by program has got to be pretty important.

Sky Bet sent this out with their POCT communication:

The new POCT (Point of Consumption Tax) comes into effect today and as a result we wanted to confirm how this will affect the deductions to your revenue share payments in line with 1.24 of our Terms & Conditions.
The deductions are a combination of the new POCT (15%) and other pre-existing deductions. The overall deductions will now be as follows;

• Sportsbook – remaining at 16% as we are already UK based and not affected by POCT.
• Vegas – 19%
• Poker – 15.5% rake / 14.5% tournament fees.
• Bingo – 23%
• Casino – 25%

I applaud Sky for being transparent about their deductions, 16% on sportsbook may prove to be very competitive in the new world.

30%+ revenue share with some programs may sound great in theory, but if there's a large deduction from gross to net revenue before you even start then you may be better focussing on programs with a 25% deal but with fewer deductions. I also fear that POCT will give some programs an excuse to hike deductions above what's a reasonable level, although that remains to be seen.

[PROFRBcom]

30%+ revenue share with some programs may sound great in theory, but if there's a large deduction from gross to net revenue before you even start then you may be better focussing on programs with a 25% deal but with fewer deductions. I also fear that POCT will give some programs an excuse to hike deductions above what's a reasonable level, although that remains to be seen.

Yea, we'd all better get used to it though. Sooner or later, every one of these money printing insane governments is going to hike taxes on gambling (and everything else under the sun). I applaud the transparency as well, if only sites would let us know exactly what a "deduction" is. I see strange things in my reports from time to time but there is no way to police them. One must simply accept the numbers provided
** I'm not referring to SkyBet here, but our partners in general