Pinnacle Dumps U.S. Affiliates

[Ziggy]

Receved this today, January 29, 2007...

Dear Pinnacle Sports Affiliate Partner,

As an extension of our recent decision to voluntarily exit the United
Sates market, Pinnacle Sports informs you that we are also no longer able
to partner with US based Affiliates. Accordingly, as of Monday 5th
February 2007, any referrals from Affiliates who are located within the
United States will no longer be accepted.

As per our normal commission settlement schedule, full commission payments
will be made as of Sunday 4th February 2007. We will begin processing
payments on Monday 5th February 2007 and all Affiliates with a positive
commission balance will be paid in full. You will be notified by email
when your commission payment has been processed.

We request that all Pinnacle Sports promotional materials, including all
banners and tracking links to Pinnacle Sports, be removed from your site
by no later than Monday 5th February 2007.

On behalf of everyone at Pinnacle Sports, we would like to take this
opportunity to thank you for your support of the site over the years and
to say that it was a pleasure working with you.

We thank you for your understanding.

Sincerely,
David Ogenia

[matted]

But of course no buyout of your player base...

[Ziggy]

I am at a loss as to why they would drop affiliates if an affiliate site is focused on a global audience. Apparently, U.S. affiliates have "coodies."

[matted]

Sorry to be so pessimistic, but they can essentially erase US affiliates (non-recoverable) and collect 100% on those existing players. Then, in 6 months when conditions change, invite everyone back with a fresh player base.

[Ziggy]

Yes, I understand the "greed part." I don't see them coming back any time soon as affiliate structured.

[casinoranking]

I'm not based in the US, but this will be remembered. I will not affiliate with this property and I dont think many international affiliates will choose to do.

I had a similar thing happen when rapid satellite took away all my residuals because I am based outside of the USA.

This is not cool for any program to do and it proves to everyone how unimportant affiliates are to them

I doubt anyone will be promoting this scum within 6 months.

[Anthony]

Pinnacle has made an uneducated decision that could set a dangerous precedent for other affiliate programs. American webmaster are sending players from non-US areas. We will not tolerate this sort of abandonment of your affiliate partners.

[Topboss]

What a poor marketing decision from Pinnacle.
I don't currently promote them but in view of this ridiculous decision of theirs and in support of my fellow US webmasters I WILL NOT promote them either.
Geez - How much more can you poor guys in the States take??!!!

[CityGuard]

I've seen a player base sold when sites are sold -- it is permissible to sell one's lifetime players without selling the site as well? Are these sales of player accounts recognized by the affiliate programs?

I ask because if they're only closing accounts for U.S.-based affiliates, I'm wondering if it would be possible to keep the player base open by selling it to another affiliate outside of the states.

[Ziggy]

It is an interesting question, CityGuard, but if that were the case, the sportsbook would be dealing with a lot of transferring - which (a) I doubt from a financial standpoint (my guess is they want the TOTAL income), and (b) it would be quite cumbersome if all U.S. affiliates did so.

I've heard rumors BetCRIS may be ready to do the same thing after Super Bowl. If that proves true, it does not bode well...

[matted]

I thought that was done off the books - as in the buying webmaster gets the account password and changes payment details to their own accounts?!

[Ziggy]

I believe you are correct, Matt, because it keeps the sportsbook out of the transaction.

That is why I said above that if this were the case, then Pinnacle would have to hire a team just to handle such transfer transactions alone.

I believe the outcome is the book gets the players and any future earnings. I seriously doubt they would allow transfers of affiliate links, etc., and therefore players, between countries.

Do ya' think its about money?

[wildhorses]

I just sent a strongly worded letter to their affiliate manager. This decision is preposterous.

I had no plans to drop this outfit, only to adjust the marketing focus to worldwide.