party blackjack revenue calculations

richardb · #1 10-27-2005, 01:24 PM

It appears that the revenue for blackjack is not based on net win or net loss, but based on the house edge times the wager amounts by the players. Here is what I found on the partypoker affiliate site:

You will receive 20% of House Win Revenue* for your players for all your MGR trackers. You will be able to see the House Win Revenue from your players against each tracker.

*House Win Revenue is calculated as
Standard house win rates (%) times
Value of wagers by your players ($).

I am guessing that if the house edge on a game is 5% and someone wagers 100 dollars a hand, the House Win Revenue is 5 dollars a hand. So if someone plays 100 hands at 100 dollars a hand, then the House Win Revenue would be 500 as opposed to how much this player won or lost. I believe they did this to prevent any chance of negative revenue for the affiliates.

Can anyone confirm this? Is this better or worse than the traditional means of calculating blackjack MGR (i.e. net win/net loss) ?

Prenut · #2 10-27-2005, 01:34 PM

For the affiliates this is worse value wise. This is because most people do not play blackjack optimally and the house wins more than the "house edge". However, I am sure some people do not mind it as they are cutting out the affiliate risk completely.

richardb · #3 10-27-2005, 02:50 PM

It looks like affiliates net about 20-21 cents per 100 dollars wagered on blackjack.

ICISIC · #4 10-27-2005, 03:29 PM

I think win win situtaion

nordberg25 · #5 10-27-2005, 04:02 PM

I disagree, give me the risk...after dealing blackjack for almost 8 years at 2 casino's, I would say hands down, give me the wins and losses (including negative MGR) all day long, in the long run you are losing out big time doing it this way.

checkingout · #6 10-27-2005, 04:07 PM

There is no doubt this is worse for us long term and number wise BUT there is no risk which is nice. You could have a heavy player win a few thousand in a month playing quite easily. If you have to make that up in poker revenue.....

I think overall its fair.

richardb · #7 10-27-2005, 04:19 PM

I was hoping they did things different. I wish they gave us the option to take the net win/loss option and if we didn't want to take the risk, then we could opt out from participating in the blackjack games. Or they could keep the blackjack MGR and poker MGR separate and let negative balances for blackjack rollover from month to month. They already do that for starluck casino and partypoker affiliates. They keep the balances separate, even though its the same company running those sites.

PPP · #8 10-27-2005, 05:50 PM

Seems much better this way. You have to remember Party has 30k affiliates, of which a significant percentage are honesty-challenged. For a lot of affiliates if they got hit by a big blackjack loss, they'd just abandon the account and start a new one. Besides costing Party money, it would be a big waste of their time.

As poker affiliates, you don't care if your players win or lose. Same with blackjack here. You would just care that they bet. Consistent and sensible choice.