How do the game providers get paid?

[IM_SPORTS]

Not sure if this is in the right place anyway

I'm wondering how do the game providers get paid is it a fixed fee or is it based on players losses?

if it is the latter then there is a reason to rig the slots.

The casino I'm playing at right now doesn't want to give me an answer so..

 

[dunover]

Not sure if this is in the right place anyway

I'm wondering how do the game providers get paid is it a fixed fee or is it based on players losses?

if it is the latter then there is a reason to rig the slots.

The casino I'm playing at right now doesn't want to give me an answer so..

I believe it's small percentage of stakes played, regardless of wins or losses - in other words player usage.

 

[dave1888]

Not sure if this is in the right place anyway

I'm wondering how do the game providers get paid is it a fixed fee or is it based on players losses?

if it is the latter then there is a reason to rig the slots.

The casino I'm playing at right now doesn't want to give me an answer so..

I think the casinos buy the games from the provider for a substantial sum?

 

[homerbert]

Hey guys!

99% game providers work on revenue share basis.

Some - also require setup fee.

I.E.
In average, game providers get 10-15% of gross gaming revenue on their games.

For example:
Provider fee is 15%.
Someone lost 100$ deposit + 100$ bonus. Game provider will get 30$.

Hope this helps.

BR,

V.

 

[dunover]

Yeah, I was aware it's about 10% but didn't know for sure if the amount they received was dependent on losses (which Homerbert says it is) or simple turnover. So why are there so many crap slots, surely these must be played by some people in order to earn the developer money? Now you can see why there's so many cheap clones within the same developer, or popular mechanics like BoRe and Buffalo get copied so much!

 

[forgotlogin]

it makes zero sense that its just the turnover on the game.
because if slot RTP is 96%, and then casino has to pay further 10% in game turnover, casino cannot make a profit

so, it must surely be paid a percentage of net losses by players

 

[Jono777]

IMO it would make more sense to pay a fixed yearly contracted amount.

Reasonably surprised to find out after all this time that it doesn't

 

[TheAverageGuy]

payout on bonus funds should only occur in the event of a player win, if the bonus doesn't clear, the imaginary money remains imaginary.. good work if you can get it though I guess..

 

[homerbert]

payout on bonus funds should only occur in the event of a player win, if the bonus doesn't clear, the imaginary money remains imaginary.. good work if you can get it though I guess..

Unfortunately not.

For game providers - it is does not matter is this bonus funds or not. Some of them give some kind of bonus deduction, but generally bonuses are really cost operators money.

 

[TheAverageGuy]

Sounds a lot like the vacuum cleaner salesman sending you a cleaning bill for the "Free in home demonstration"

;-P

 

[neilw]

It's common for Live Casino Providers to charge an initial setup fee, then a monthly license fee for the games the casino takes and then a REV share. If the casino takes a dedicated environment the costs are higher as they are the only people using the tables, whereas the generic tables are used by many so the cost is shared and therefore lower.

The provider makes more from one to many games like Roulette, Baccarat, Casino Hold'em etc as they are selling one table multiple times.

I suspect there is huge opportunities for Casinos to negotiate on fees.