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 1000 usd profit, the second affiliate maybe had a negative balance with 950 usd. (Total profit 50 usd)
If this scenario happen, then this casino will be loss because they just pay their first affiliate with 0.25-0.70 * 1000 usd because overall their profit only 50 usd.
Although this scenario is quite small chance to happen. But this is a real risk for them.
How do you think?
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