I'm sorry, but I seem to be long winded this morning.
I'm just a player and I'm amazed that the affiliate hold from player losses can be as high as some have stated. It would appear that casinos advertising expenses are so high they couldn't dole out much in the way of real comps if they wanted to.
I've asked this question in the forum before (ages ago) but no one ever really gave me a clear answer. What are an online casinos expenses? At least this thread about affiliates clues me in on where some (a majority?) of online gaming expenses are going.
When I walk into my favorite B&M casino, I SEE a lot of their day to day expenses: 2000 room hotel with marble floors in public areas, desk clerks, housemaids, maintenance men; casino lighting and A/C, machine attendants & techs, cocktail waitresses who carry around comp booze that the casino must also pay for, bartenders, several high def TVs at each of the 3 or 4 bars, dealers, playing cards and chips, cashiers; 4 eating facilities, chefs, waiters, hostesses, etc., etc. But when I go play there 3 or 4 days, I don't pay for my room (rack rate $59 per weeknight) or sometimes a suite (rack rate $119 per weeknight) or food ($90 per day average) and I get a free dinner for two at their fancy schmancy steak house on my birthday, and anniversary, etc. ($200). And then there's the cash back on points I earn per trip (usually runs $50 - $150) that I walk out with when I check out.
Now someone is going to say I must be a high roller. Nope. I play too tight and roll too low to be a high roller even at a land based casino. Let's put it this way (without getting too specific regarding numbers)... My gambling trip stake for 4 nights B&M casino stay, is about equal to what I was spending at my 2 or 3 fav online casinos in one
week (back when I could occasionally hit something). And I only go to a B&M casino 3 or 4 times per year (long drive). They don't have to give me all that stuff for free, but they do it because
they want me to come back to give them another chance at my money. They trust the house edge. Even if I walk out $2000 ahead for a trip, they
still want me to come back. Why? Because they can't win it back off me if I never come back or decide to take the majority of my play elsewhere.
Lest you think I'm getting too far afield... B&M casinos also have Hosts who also make a commission off their high roller players losses -- sometimes only on the 'theo' (theoretical losses or house edge). BUT.... there's only a handful of Hosts per casino (depending on the size of the facility). I think my B&M casino in the example above has about 10 Hosts, 2 or 3 are strictly for really high rollers and whales.
I think there should be fewer affilates overall. Let's face it, there's a lot out there promoting bad casinos. I would be interested in knowing how many affilates are connected to each online casino (on average).
I also think online casinos should be spending less on advertising (including affiliates) which is targeting getting
new players in the door, and spending more on
keeping players.
Back to mr alphabet's original question: Do affiliates make 25% - 50% off player losses? Affiliate programs actually offer that much pay back? Oh my...
KK: My condolences. Give it some time.
Now... let's all have a morning cuppa java shall we?