iGaming affiliate commission models, explained
An affiliate deal in casino or sportsbook comes down to two questions: what the affiliate is paid on, and when a player starts to count. Every model below is an answer to those two questions. This guide covers RevShare, CPA, hybrid, tiered RevShare and fixed per-player deals, the revenue base they are calculated on, negative carryover, CPA qualification and sub-affiliate cascades.
The revenue base: GGR or NGR
GGR (gross gaming revenue) is what players staked minus what they won. NGR (net gaming revenue) is GGR after the costs the operator carries on that play. Most iGaming deals pay on NGR, and the contract should list which of these come off first:
- bonuses issued to players, and cancelled or rolled-back bets and wins;
- chargebacks on deposits;
- game provider fees, which differ by provider and often by brand;
- payment processing fees on deposits and withdrawals;
- jackpot contributions and gaming taxes;
- for sportsbook, third-party data and trading fees and balance corrections.
Two platforms can report the same GGR and disagree about what an affiliate earned, because they subtract different things. A GGR deal is simpler to audit, but it pays the affiliate a share of money the operator never kept.
RevShare
The affiliate earns a percentage of the NGR (or GGR) their players produce in each period, for as long as the deal runs. It is the model that aligns the affiliate with player lifetime value: an affiliate who sends players who keep playing keeps earning. Rates are negotiated per deal; percentages in the 25–50% range are commonly quoted, with the higher end reserved for affiliates with proven volume.
RevShare is paid on the sum of all the affiliate's players in the period, not player by player. One player's large loss for the operator (a big win) is offset by the others.
Negative carryover
If the affiliate's players win more than they lose in a month, NGR is negative. The deal has to say what happens next:
- No carryover: the month pays zero and the next month starts clean.
- Negative carryover: the deficit is carried forward and netted against the following positive months before any share is paid, until it is recovered.
Worked example. A 30% RevShare deal. In March the affiliate's players produce −$8,000 NGR; in April, +$20,000.
Without carryover: March pays $0, April pays 30% × $20,000 = $6,000.
With carryover: March pays $0 and carries −$8,000. April's base is $20,000 − $8,000 = $12,000, so April pays $3,600 and nothing carries further.
Carryover protects the operator from paying out on a month in which it lost money to the affiliate's players. Affiliates negotiate against it, or for a reset after a fixed number of months, because a single high-roller win can wipe out several months of earnings.
CPA (cost per acquisition)
A fixed amount per new depositing player, paid once, when the player makes a first deposit that qualifies. The affiliate is paid up front and does not share in the player's later value; the operator carries the risk that the player never becomes profitable.
Because a CPA is paid per head, it is the model most exposed to fraud: self-referrals, bonus abusers and deposits made only to trigger the payout. Operators protect it with qualification gates. A first deposit only pays the CPA once it passes every gate the deal sets, and a deposit that has not passed yet stays pending rather than being rejected, so it can still qualify later. Common gates:
| Gate | What it requires |
|---|---|
| Minimum deposit | The first deposit is at least a set amount, gross or net of processing fees. |
| Wagering | The player has wagered a multiple of the deposit (e.g. 3×), or a flat minimum amount. |
| Hold period | A number of days has passed since the deposit, so chargebacks and refunds surface first. |
| Cash retention | The player still has at least a set amount on the account rather than withdrawing straight away. |
| KYC level | The player has passed identity verification to a minimum level. |
| Number of deposits | The player has made more than one deposit. |
| Positive NGR | The operator has not lost money on the player over their lifetime. |
Worked example. A $150 CPA with a $20 minimum deposit, 3× wagering and a 14-day hold. A player deposits $50 on the 1st and has wagered $160 by the 5th. The CPA is still pending: the hold ends on the 15th. If nothing is charged back by then, it qualifies and pays $150.
Hybrid
A lower CPA plus a lower RevShare on the same players: the affiliate gets some money up front and some lifetime value, and the operator lowers its up-front risk. Negative carryover, where the deal has it, applies to the RevShare part only; the CPA part is paid per qualifying player as above.
Tiered RevShare
The share rate rises with the NGR the affiliate brings in the period, in bands. It rewards volume without committing the top rate to every affiliate.
The contract has to say how the rate is applied, because there are two readings and they pay differently:
- Whole-period: the band the period's total NGR falls into sets the rate for all of it.
- Marginal: each slice of NGR is paid at its own band's rate, like income tax brackets.
Worked example. Bands: 25% below $10,000, 30% from $10,000 to $50,000, 35% above. The affiliate brings $40,000 NGR.
Whole-period: $40,000 × 30% = $12,000.
Marginal: $10,000 × 25% + $30,000 × 30% = $11,500.
Affiliar applies the whole-period reading.
Fixed per qualified player
A fixed amount paid once per player, in the period the player first meets every qualification rule. It looks like CPA, but it is not anchored to the first deposit: the player can qualify weeks later, which lets the operator require things a first deposit cannot show, such as a third deposit or positive lifetime NGR.
Per-product plans
Casino and sportsbook have different margins and different costs, so many operators set separate deals for each: for example a higher RevShare on casino NGR than on sportsbook, or CPA only on casino. A combined plan pays on the NGR of both products together.
Sub-affiliates
In a two-tier programme, an affiliate can recruit other affiliates and earn on what they bring. There are two common ways to fund it:
- the operator pays the parent an extra percentage of the sub-affiliate's revenue, on top of what it pays the sub-affiliate;
- the parent passes a share of its own commission down to the sub-affiliate.
Affiliar uses the second: the operator pays the chain a commission on the sub-affiliate's players, and each parent sets what percentage of it the sub-affiliate receives. Because a share cannot exceed 100%, a parent can never owe a sub-affiliate more than it was paid.
Choosing a model
| Model | Suits | Operator's risk |
|---|---|---|
| RevShare | Long-term partners, content and SEO affiliates | Low: pays only on revenue made |
| CPA | Paid-media affiliates, new markets | High: paid before the player proves value |
| Hybrid | Affiliates who need cash flow and will share upside | Medium |
| Tiered RevShare | Programmes rewarding volume | Low |
| Fixed per player | Operators wanting proof of retention before paying | Low to medium |
Frequently asked questions
What is the difference between RevShare and CPA?
RevShare pays a percentage of the net revenue the affiliate's players generate, every period, for as long as the deal runs. CPA pays a fixed amount once per player, when that player makes a qualifying first deposit. RevShare shares the risk and upside over the player's lifetime; CPA is paid up front and the operator carries the risk.
What is negative carryover?
When the affiliate's players produce negative NGR in a period, the deficit is carried forward and netted against the next positive periods before any share is paid. Without carryover, each month floors at zero on its own.
Is RevShare calculated on NGR or GGR?
Most iGaming deals pay on NGR: GGR after bonuses, chargebacks, provider fees, payment fees and gaming taxes. The contract should say which, and list the deductions.
How do operators stop CPA fraud?
By paying CPA only on first deposits that pass qualification gates, such as a minimum deposit, a wagering requirement, a hold period, cash retention, a KYC level, several deposits or positive lifetime NGR. A deposit that fails a gate stays pending and can still qualify later.
Run these deals without spreadsheets.
Affiliar is affiliate management software for casino and sportsbook operators. It calculates every model on this page from live player activity, per product, with the NGR deductions, carryover and CPA gates set per plan. Plans start at $53/mo.