Is this fair to affiliates?

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22 February 2009, 6:19 am
Betpartners

Is this fair to affiliates?

This is more a sportsbook affiliate issue but please read through it and give me your thoughts.

A sportsbook has paid out on Man Utd winning all three football (soccer) trophies in England this season, now they may well win all three but it is far from guaranteed.

Now by paying out any affiliate that as signed up a user that backed Man Utd to win all three trophies will obviously show a negative on this.

However if Man Utd do fail to win all three trophies as i think they will fail then the affiliate is out of pocket on an event that never took place.

Have i explained that correctly?

An example i suppose would be if the new york yankees were say 10 games aheadin their division with 40 games to go and sportsbooks then call the bet and say the new york yankees have won it already and we will pay out all those that backed the yankees early.

So as an affiliate you would show a negative on that bet, but then what happens if the yankees crumble and boston overtake them.

Affiliates seem to be on a lose lose here.

Is this fair to affiliates
22 February 2009, 7:05 am
joeyl

Paddypower paying out winners before they've won is ok, as long as no one get's hit twice apart from themselves if it goes pearshaped.

However Betp.. When Paddy go E/W terms first 5 at Cheltenham or Aintree, affs should not complain.
22 February 2009, 7:12 am
Betpartners

Yes indeed it is paddypower, i just did not want to name them so as not to give an impression i was having a dig at them, i certainly am not, i get on well with them.

They are not the only ones that do this sort of thing, BetFred have done so in the past and others also, its the principle i am refering to more than anything.

Paddys even paid out on Stoke being relegated after the first week of results with 37 weeks still to go lol and a quick look at the table with and stoke are not even in the relegation zone now albeit not far away.

Its done for marketing purposes i know, but dont think affiliates should have to pay in the event of a mistake, nor should the affiliate accounts be deducted until the event is over not when paddys or any bookies closes a bet early.
22 February 2009, 7:18 am
joeyl

Done paid out twice in 1998. I don't think it fair an aff pay twice too no.
22 February 2009, 9:20 am
matted

I never really understood this - and I'm a sports guy.

So, they paid out - now what is Man Utd loses? Do the people who bet another way get paid, too? I think that is your complaint. I'm not sure who benefits from such action? Paddy loves to do this kind of junk just for the media coverage.

If you are in a rev. share agreement, you are entitled to whatever percentage of revenue the affiliate brings... regardless of how the sportsbook operates. Provided the same treatment is given to all players (and all affiliates).
22 February 2009, 9:30 am
Betpartners

Quote:

Originally Posted by matted

I never really understood this - and I'm a sports guy.

So, they paid out - now what is Man Utd loses? Do the people who bet another way get paid, too? I think that is your complaint. I'm not sure who benefits from such action? Paddy loves to do this kind of junk just for the media coverage.

If you are in a rev. share agreement, you are entitled to whatever percentage of revenue the affiliate brings... regardless of how the sportsbook operates. Provided the same treatment is given to all players (and all affiliates).

Yes if Man Utd lose the people that bet the other way also win, i am not sure what the market was, but if there was a market on say Man Utd not winning all three and they dont then yes those that took that bet win also.

The really weird thing is that you can still bet on Man Utd winning all three still, though anyone taking that bet now would have to wait until the season ends or until paddys decide to payout early again
22 February 2009, 3:30 pm
TheGooner

A related subject.

I believe that when PaddyPower pay a cash-back out (they offer several each week on sports event) then these paybacks do not affect the affiliates totals - they're done as a form of credit that carries no affiliate charge.

I've seen this posted in a forum (either here at the GPWA or CAP) by a PaddyPower staff member. And during the last world cup I certainly saw that rev-share was NOT affected by the cash back results.

Now I don't know if that also relates to the promotional "early payout" you are discussing here - but I believe its possible to do the same thing.

-------------------------------

Additionally, I think that this early payout has been done to limit losses, because I do not believe many people backed Manchester United to win three trophies yet ... and so the payout is small.

But given the events of the last weekend - where the Premier League now looks wrapped up - then if United can get past Inter Milan (and Jose Mourinho) in the Champions League then it would all be on ... and people would be piling in.

If PaddyPower pulled the offer and closed the book saying no more bets - there would be squeals of disgust from punters - and if they left it open then they would have a huge potential exposure.

This way - Paddy Power can limit the damage to only the early punters who took it - and look good doing it.
8-)
22 February 2009, 3:55 pm
Betpartners

Quote:

Originally Posted by TheGooner

A related subject.

I believe that when PaddyPower pay a cash-back out (they offer several each week on sports event) then these paybacks do not affect the affiliates totals - they're done as a form of credit that carries no affiliate charge.

I've seen this posted in a forum (either here at the GPWA or CAP) by a PaddyPower staff member. And during the last world cup I certainly saw that rev-share was NOT affected by the cash back results.

Now I don't know if that also relates to the promotional "early payout" you are discussing here - but I believe its possible to do the same thing.

-------------------------------

Additionally, I think that this early payout has been done to limit losses, because I do not believe many people backed Manchester United to win three trophies yet ... and so the payout is small.

But given the events of the last weekend - where the Premier League now looks wrapped up - then if United can get past Inter Milan (and Jose Mourinho) in the Champions League then it would all be on ... and people would be piling in.

If PaddyPower pulled the offer and closed the book saying no more bets - there would be squeals of disgust from punters - and if they left it open then they would have a huge potential exposure.

This way - Paddy Power can limit the damage to only the early punters who took it - and look good doing it.
8-)

Yes you may well right, however come next sunday they will look slightly foolish when Tottenham retain the Carling Cup :)
22 February 2009, 8:05 pm
TheGooner

Quote:

Originally Posted by Betpartners

Yes you may well right, however come next sunday they will look slightly foolish when Tottenham retain the Carling Cup :)

:evillaug::evillaug::evillaug::evillaug::evillaug: :evillaug:
22 February 2009, 11:13 pm
Betpartners

Quote:

Originally Posted by TheGooner

:evillaug::evillaug::evillaug::evillaug::evillaug: :evillaug:

LOL I will be back on sunday evening to accept your congratulations :joy:
23 February 2009, 2:31 am
HenrikGr

Couldnt this be seen a great retention tool as well?
So all of these players that get paid for the bet they have laid prior to the correct score is 100% certain. Those players will probably be more loyal and thus more profitable in the long run for you affiliates or dont you agree?