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  1. #1
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    Default how can casinos pay affiliates if....

    Im unsure about this and thought maybe someone here could fill me in.

    How is it that a casino can make a statement that they have a payout % of 90 - 97 %, when they are paying affiliates anywhere from 25% - 50% commision.

    Something just doesnt add up.

    If you own a casino and pay out 90% + to players, who can you have enough money left to pay affiliates and earn money for yourself ?

    Anybody?
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  2. #2
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    Default Re: how can casinos pay affiliates if....

    Quote Originally Posted by pumacat
    Im unsure about this and thought maybe someone here could fill me in.

    How is it that a casino can make a statement that they have a payout % of 90 - 97 %, when they are paying affiliates anywhere from 25% - 50% commision.

    Something just doesnt add up.

    If you own a casino and pay out 90% + to players, who can you have enough money left to pay affiliates and earn money for yourself ?

    Anybody?
    Thats 20%-50% of the 3-10%, not of the total
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  3. #3
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    Default

    Hi,

    What Chill said.

    Also you have to keep in mind that the payout is based on total amounts wagered and lost... When a player is playing at a casino he / she will most of the times win a little / loose a little. So if you start with a $100 then loose $5... win $10.. loose $20... win $30... loose $25... the player has played in total $50 and won $40... in the end on average a player with a $100 deposit will play about 20 times the deposit before loosing all his / her money. So that would be $1900 in wins... $2000 in losses.

    ($1900 / $2000) * 100% = 95% payout.

    At least that is how I understand it all works.

    Some players will in the end win... and cash out... which will bring the payout percentage up. That's why sometimes you will see a casino having a payout percentage of >100%.

  4. #4
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    Default

    Here is something wierd for you.

    When payout percentages are referred to for VLT's here in AB, they are referring to the total amount of times a machine pays out ANY prize vs the amount of spins made.

    So, if you put $1.00 in the machine and won 25, the payout percentage would be 100%.

    I am not sure if it works the same way in a casino here.
    Regards,
    J

  5. #5
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    Default

    Quote Originally Posted by CasinoDudes
    Here is something wierd for you.

    When payout percentages are referred to for VLT's here in AB, they are referring to the total amount of times a machine pays out ANY prize vs the amount of spins made.

    So, if you put $1.00 in the machine and won 25, the payout percentage would be 100%.

    I am not sure if it works the same way in a casino here.
    Dude,

    I've never heard of anywhere else that figures payout percentage that way. Here in MS, they figure it the way 1CL illustrated.

    Keep in mind that the casino's payout percentage is different from the game's payout percentage, which can vary widely! So, while the casino may pay out 98%, the game may only pay 92%!

    Another thing is the payout percentage really has no relationship to the actual payouts of the casino, or their profit margin. Apples and oranges entirely!!
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