Online Casino

[Anonymous]

Hello,

I am looking for information on how you guys feel about the rake-back issue.

I am sure you are aware that some affiliates are offering rake backs to poker players – I have seen up to 50% offered when I surfed some of these sites over the weekend.

Since this is starting to visibly cut into the growth of income non-rakeback affiliates would normally expect, I think it is a good idea to identify which programs approve of rake back and which do not.

Thanks for taking the time to answer.

[Anonymous]

Hi Dominique

Thank you for giving us the opportunity to voice our opinion on the matter.

It was great hearing the Party Poker representatives speak out against the practice at the CAC2005 conference in Amsterdam recently, as we have also recognised this as a trend that does not bode well for the industry.

We have a growing base of rakeback affiliates, and have taken the view that while they can join our program – we will not provide them with any increased comm structures to support their programs. Also, we make it clear to them that our client poker rooms and their support desks cannot accept affiliate rakeback queries, and that all player queries with regard to rakeback must be managed by the affiliate themselves. Payment of rakeback is a private arrangement between affiliate and their players.

Fortunately our reporting system makes it very difficult for players to be identified by the affiliate. The only way it starts becoming possible is if the player gives the affiliate information about themselves, and their play.

I have been actively communicating our view on Rake Back to my affiliates in my
Poker Partners blog. What I will do though is share the news about Party Poker’s action with senior management here, and explore various scenarios that we could take with them.

In a nutshell, we agree that Rake Back programs are not profitable and or sustainable for affiliates in the medium to long term, and the cost to the industry in terms of profitability and the proliferation of a negative player values and culture is too high.

Fortune Affiliates therefore does not encourage rake back programs, and will consider taking more definative actions against it going forward.

Best regards

Brad W
Fortune Affiliates

for

Royal Vegas Poker and
7 Sultans Poker

[Anonymous]

RoyalVegasPoker wrote:

Hi Dominique

In a nutshell, we agree that Rake Back programs are not profitable and or sustainable for affiliates in the medium to long term, and the cost to the industry in terms of profitability and the proliferation of a negative player values and culture is too high.

Fortune Affiliates therefore does not encourage rake back programs, and will consider taking more definative actions against it going forward.

Thank you Brad.

This attitude is hopeful – you do recognize the bad influence on player culture. That is something I haven’t heard anyone state before.

I am also glad to hear you are considering taking more definitive action against it – I will be looking for a statement that you have decided to prohibit affiliates from offering rake back for your rooms.

Meanwhile, non-rakeback affiliates currently conducting a profitable partnership with you will have to watch their bottom line carefully. If the affiliate’s sign ups go down, or your revenue gets stagnant in this growth industry, or even declines, chances are that rakeback offers for these rooms have permeated this particular affiliate’s player source and s/he is starting to lose money.

I want to thank Brad for his cooperation and his clear and open view of the matter. Hopefully we will hear more soon.

[Author]

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