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The Rich Webmaster Ponzi scheme

Discussion in 'Casino Industry Discussion' started by mary, Jan 4, 2003.

  1. mary

    mary Dormant account

    You must register/login in order to see the link.

    Apprently, their business model depends on bringing in more players to the market overall--but completely neglects the effects on individual casinos using this affiliate marketing.

    Which is to say, the more a casino gives to affiliate marketers, the less the casino has to pay players. Many online casinos are taking action (bets) that are too big for the house's bankroll; a streak of luck on the part of a "Whale" can put them in a position of debt with respect to all their players. Typically, they delay payment to players when this happens, waiting for deposit to catch up.

    They may chase deposits by offering percentage bonuses to players; which reduces the value of each of those deposits and actually incurs more debt. Add a negative balance affilaite program, and the struggling casino is out of business, failing to pay the last of the players and affiliates.

    The Richwebmaster model takes no account of this. They also claim to have "discovered" the many casinos moving to Playtech. I find this unlikely; a more likely scenario is that Rich Webmasters is Playtech.
     

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