Software licence fees

[Simmo!]

I've been told that MG (for example) licence fees and with progressive contributions are a fairly hefty overhead (30% ?). In light of the recent announcement by MG to stop taking players from 11 States, and with Cryto and Playtech shutting out the USA, do the licencees get a rebate and cut on their licence fees now jetset?

Just interested, because if the figures I've been told do actually hold true, I can't see how an online casino, on MG anyway, could remain profitable without some huge cuts somewhere. Which would surely mean we would start to see some brands close down, especially the minor brands from bigger groups. Any thoughts?

Simmo!

 

[AussieDave]

I can't see how an online casino, on MG anyway, could remain profitable without some huge cuts somewhere. Which would surely mean we would start to see some brands close down, especially the minor brands from bigger groups.

I think we're going to see a lot of smaller operations go to the wall over this, not just MG powered. I agree the bigger groups will drop some brands. However with the bigger groups EG Fortune Lounge and such, their royalty fees paid to MG are not as high as say a single MG casino operation.

Basically from my understanding, MG royalities are based on a sliding scale. The more casinos you have the less % paid overall.