Query for Microgaming Progressive Jackpots

[mojo]

Hi All,

I have been trying to find an explaination microgaming progressive jackpots affiliate contributions with no luck. I am looking for how affiliates and casinos contribute to the microgaming jackpot progressive pool and how it affects commisions. Could you give a breakdown of what percentage of each dollar goes where? Also, is it on dollars wagered or strictly on deposits? Do all affiliate programs use the same formula to calculate?

Thanks for the help!

[universal4]

I thought a portion of every wager went to MGS, and thus came offr the netwin....which should not affect us too negatively...

What I mean is I don't think we should see an additional charge against the netwin as it should have been taken out already??

Unless of course the group shows us the progressive contributions separately....and if so that would be reasonable...

I like progressives as it gives the player a chance at hitting a large jackpot and often those that like to play progressives will play more or longer periods (although I rarely play them myself...I like regular video slots with entertaining bonus rounds)

Rick
Universal4

[LiveCasinoPartners]

I've had the same question.. if a progressive "fee" is taken out and goes against your net profit then isn't it true that someone who only has progressive slot players making nothing?? or is there a percentage that goes along with it?


Mojo is right, it isn't very clear.

[universal4]

I agree Wagerx, it is a bit confusing and I am sure we had some threads here over the years that talked about these cases at some of the properties....

Rick
Universal4

[mojo]

I agree Wagerx, it is a bit confusing and I am sure we had some threads here over the years that talked about these cases at some of the properties....

Rick
Universal4

I have searched and there are indeed some threads that have talked about this. I still couldn't find the nuts and bolts of the way it works. I have searched ecogra and microgaming dot com. Maybe some Microgaming affiliate managers could enlighten us?

[chill]

I asked the very same question back in January without getting a clear answer. I no longer use progressives as an approach as you actually don't earn a cent on progressive players.

[mojo]

I asked the very same question back in January without getting a clear answer. I no longer use progressives as an approach as you actually don't earn a cent on progressive players.

TY chill. Yes, I read that and you did ask this very same question. We have still not received a straight answer to your question. We are screwed if our players play progressives?

I don't want to either not promote quality casinos or not promote progressives as I would love to see a player win. I merely want an answer as to what exactly I am contributing to. LOL hope I'm making sense.

[Renee]

Hey guys

I don't know exact % amounts etc that are contributed but I can add to the conversation..

Basically, all the MGS groups contribute toward the progressives a % of the player wagering. For our group, the % is not paid by the affiliate (we pay commission before any royalties and admin/bonuses are removed), however if a player wins a progressive that is linked to an affiliate and wagers some or all of that progressive win, the affiliate earns commission from the wagering.
So really, the affiliate is advantaged by their players that win progressives if the player decides to wager some or all of it at the casino. If they don't, there is 'no skin off your nose' so to speak.

This is for our group. The other groups will have to post to say how they take it out commission wise (if this is the case).
Cheers
Renee

[mojo]

Basically, all the MGS groups contribute toward the progressives a % of the player wagering.

Thanks Renee! That has answered a couple of questions.

Do you what what percentage of each dollar is contributed? At any rate, it's not 100%?

[Renee]

I believe its between 3-9%

Definitely not 100%.. LOL

[mojo]

Thanks again Renee. That sheds some light. I don't think all affil programs do it the same way according to some of my stats.


Hopefully more MG affil managers can contribute.

[Jody Nustedt]

Just to agree with Renee, the deduction comes from each $ wagered, whether the player wins or loses. Percentage wise it varies from machine to machine, I'm afraid I can't give an exact amount (as I don't know it).

The way it can affect affiliates is because obviously they don't earn rev share on this deduction. For example, if a player deposits $100, and manages to wager $1000 on a regular slot before losing his money then the affiliate will get $25 (assuming 25% share).

However, if the player wagers $1000 (and loses his $100) on a progressive slot which takes 5% of each $ wagered, then $50 will go to the progressive contribution, leaving $50 to the casino, and $12.50 to the affiliate.

The upside of course are the large jackpots, which I believe keep players playing for longer.

[chill]

However, if the player wagers $1000 (and loses his $100) on a progressive slot which takes 5% of each $ wagered, then $50 will go to the progressive contribution, leaving $50 to the casino, and $12.50 to the affiliate.

That is $112.50 and dosen't add up.

Bottom line is why should we push progressives when we don't earn revenue on them?
I don't buy the "when your player wins a progressive" talk because we all know the chance of that is extremly small.

[Jody Nustedt]

Chill,

The $12.50 comes from the money earnt by the casino (25% of $50). If affiliates aren't earning from progressives, then neither are casinos. It can (and does) happen that a player will make a deposit, wager through it all, yet the casino won't have made anything and can be in a losing situation.

Obviously it is up to affiliates themselves if they wish to promote progressives. I personally think it is worth it, as a lot of players seem to play more when there is a large jackpot to be won, although I can't really provide any data to prove this.

Regards,

[Renee]

I just want to reiterate that OUR affiliates do not 'pay' towards the progressives...

We pay affiliates their commission BEFORE the admin/royalties are taken out.

I'm not sure how this is with other groups.. but I wanted to make that clear.

On our old 35% Revshare model.. the affiliate earned 35% of the player loss.
Once we paid the affiliate 35% of the player loss, we then took admin etc out of the remaining 65%. That's why it's TRUE revshare.

On our 35% wager model, the affiliate is earning 35% of the margin on each game type. After we pay the 35% of the margin, we take any royalties and admin out of the remaining 65%. Thats why we call it a TRUE 35% wager model.

Any questions let me know.

[mojo]

However, if the player wagers $1000 (and loses his $100) on a progressive slot which takes 5% of each $ wagered, then $50 will go to the progressive contribution, leaving $50 to the casino, and $12.50 to the affiliate.

Thank you Jody. This is much appriciated and I thank you for your input.

According to this scenerio, if a player wagers $5000 (easily done) and the progressive takes 5% of each $ wagered thats $250. If he only deposited $100 then the casino and the affiliate make nothing. This is hard to fathom.

Obviously it is up to affiliates themselves if they wish to promote progressives. I personally think it is worth it, as a lot of players seem to play more when there is a large jackpot to be won, although I can't really provide any data to prove this.

Understood and yes, that is attractive. However the more affiliates push progressives, the more we stand to lose. I have taken hits myself on this formula. I want players to win too but I don't want to go out of business in the process.

We pay affiliates their commission BEFORE the admin/royalties are taken out.

Agreed Renee. And with your wager model program, we certainly hope they hit and continue to play. Thank you and I appriciate the Rewards program.

Thank you Jodi and Renee for your input so that affiliates may make an informed decision. Perhaps this is something that should be looked into further.