Enlighten ME!!!

[Blackjax]

One of my surprising experience of playing at a land based casino/game shop was when I lost about 2000 INR (about 25EURO) and while leaving the operator gave me 20% back and said "this is for good luck". I did not understand that but someone outside casino explained be that because these slot machines were mechanical the owner did not have to share any profit with the providers of machine so they rather give some of the losses back to the depositor. Fair enough. Next to the same shop  there was a land based casinos(this one had software provider) where nothing like this happened. Since I became friends with the operator as I was playing there for over two years I asked him why they also dont give some money back as " goodluck." He explained me the basics of profit sharing. The casino operator had two choices. Choice one that the software provider of slots and operator share 50/50 i.e. if a player losses money on slots they both will share equally and if the player wins the payout will be given by both. Or choice two that operator keeps all profit but has to pay a certain amount every month to software provider(of slots) and also if the  player wins  the entire amount would be paid by the operator barring the Playtech jackpot. This is the basic business model of casinos that I have always had in my head. 

Now lets focus on the title of this topic and please enlighten me if online casinos also work in same way. Off late a lot of casinos have been released by N1 interactive which are following this strange business model of not giving any sort of welcome package or any deposit bonus but only cashback. Winny(10%), samosa(11%), crazy fox(20%, casiqo(10%) to name a few.

How does the business model of casinos work. In this type of profit sharing and as a player should I stay away from these casinos. Why? Because according to me these casinos which provide  cashback are like the landbased casinos who chose bigger profit margin and casinos that give match bonus are ones who probably are the ones to take lower risk. The cashback ones are taking that risk of taking bigger chunk of player  losses which is their bigger profit and I believe since they are doing this they are also lowering the RTP so that they are at a lower risk of bigger payouts. I know how regulation of RTP works but lets be honest these RTP are based on millions of spins. Is someone here aware of the profit sharing business of casinos and what is the deal that casinos get from slotproviders if they go for cashback vs match bonus. I know this decision is made by Casino management but at the end of the day they do talk to providers regarding RTP and stuff and the impact it might have on the final payout. That is why winnings with bonus money is capped.

Enlighten me people!!! 

[Afi4wins]

To get the real truthful answers to all of your questions, you may have to wait a very long time mate...for me to save up a few millions to open my own online casino. 

Nope...I don't have the answers...and I don't have the spiritual capabilities to enlighten you either, hehehe.

[Blackjax]

6 minutes ago, Afi4wins said:

To get the real truthful answers to all of your questions, you may have to wait a very long time mate...for me to save up a few millions to open my own online casino. 

Nope...I don't have the answers...and I don't have the spiritual capabilities to enlighten you either, hehehe.

Well thanks for your valuable input. But you have been playing at your local land based for a lot of years. Have you ever discussed profit sharing.

[pinnit2015]

Pretty much depends on the individual agreements between casino and the providers: maybe some that opt for the flat fee a month and that's it: reason being that it takes out the guesswork of revenues for the slot providers so they work out an average fee (maybe based upon previous figures) and that's it. Similarly, the fees may be based on a % based on the number of spins etc put through the slots in question, or it could be a % on  the profits/returns for the slot etc. There'll also be the normal 'hosting' fee, which is the same regardless of the amount of play/profits. 

Probably more to be honest, there could be a mix - you'd need to see a copy of the agreement though to know and these will vary provider to provider (though, for accounting purposes it'd make more sense to run with as many on the same agreement as possible) 

[Afi4wins]

1 hour ago, Blackjax said:

Well thanks for your valuable input. But you have been playing at your local land based for a lot of years. Have you ever discussed profit sharing.

Naaaah, it wasn't profit sharing at all mate, it was actual cashback, but only for regular players at that particular place.

Whenever a slot machine has eaten several thousand Ringgit of my money, all within a few days, played on only one game and on one machine (a desktop computer back in those days), then I would complain to the supervisor, and he would refer the matter back to his boss and office. The boss would then instruct the supervisor, who is either his own son or relative, to get the technician to manually set that computer to give out a specific amount of win (between 500 - 1000 Ringgit). The supervisor would then tell me on which day and time to come back to play the game, and how much that game would pay out to me. The game would automatically hang once that specific amount has been reached, and the supervisor would then switch off that computer again for a later resetting. It's a cashback win that regular big spenders could claim back from the boss, anything from 10% - 20% of the total amount lost on the game.

Back in those days, each desktop could be manually set or reset, depending on the necessity. That's how I learnt a lot of things about settings from the technician, who is usually a friend of mine too...or more truthfully...someone that I will always befriend! Hahaha.

[ValDes]

Hmm, what an interesting question.  

From what I know, probably 99% of the modern online casino Operators do not have any direct business relationships with the gaming providers such as Play'N Go, BTG, Push Gaming, etc. Instead they deal with the platform providers, such as SoftSwiss, TAIN, White Hat Gaming, etc (more info about WL and platform providers here) who are acting as the 'middle-man' between the two parties plus providing all the relevant operational infrastructure - license, payment provider/s, fraud and legal team/s, etc, sometimes even support, IT and DEV services... Different structures of contracts are available, pretty much all common options which you could think of are present and available for the relevant Operator to choose depending on their own business model and strategy. But the bottom line is that there's no direct business between Operators and Gaming Providers unless we talk about some significant/major technical issue which the relevant platform provider is unable to resolve on their own without  forwarding and calling for help from the affected software vendor. 

When it comes to choosing cashbacks vs. standard bonus offers, I guess such decision is based on a totally different motives, including but not limited to the fact that lots and lots of the common gamblers nowadays are starting to prefer playing without any bonuses involved in order to avoid handling with the bonus-terms-mayhem.