This is my first thread. But this idea has stuck my mind and maybe my friends here can give me a better explaination about the some casino affiliate return.
Please have a look around in every online casino. Why the return is so high for their affiliate partner 25 to 70%? As i know the house edge for almost all casino games are below 5 percent.
For example:
There are 2 major affiliate. First affiliate had a 1 btc profit, the second affiliate maybe had a negative balance with 0.95 btc. (Total profit 0.05 btc)
If this scenario happen, then this casino will be loss because they just pay their first affiliate with 0.25-0.70 * 1 btc because overall their profit only 0.05 btc.
Although this scenario is quite small chance to happen. But this is a real risk for them.
How do you think?
The chance of your scenario to happen is not small, those casinos will loss most of the time if they really using those system. Usually there are some hidden information we missed, can you cashout those payment instantly? Are you sure those 25-70% commission is calculated from the affiliate's bet amount?