Bojoko has created a special industry report looking into the fees operators apply to the revenues affiliates earn and the impact this is having.
Bojoko carried out an audit of the online casinos listed on its site that it has a 45 per cent revenue share agreement with to see what it actually received once fees had been deducted.
The findings showed the lowest net revenue after fees were deducted came out at just eight per cent. Not only that, but 18 of the audit casinos delivered a revenue share after fees lower than 16 per cent.
At the other end of the scale, the highest revenue share after fees was 40.8 per cent but the average revenue share after fees was 23.9 per cent - nearly half the agreed 45 per cent.
Following the audit, Bojoko took the decision to create a special report to start a conversation about fees and how operators can be more transparent about when and how they are applied.
You can access the full report here.
To ensure the report was balanced and representative, Bojoko spoke with several operators as well as affiliate platform providers. It also includes input from Bojoko’s chief business officer, Joonas Karhu.
The aim of the report is to not just get the conversation started regarding fees and transparency, but to actively suggest ways the relationship between operators and affiliates can be improved.
One of the ways Bojoko and Karhu are seeking to improve the situation is through the recently launched Professional Gambling Affiliates Association. Its role is discussed in the report, as well as some of the early progress that has been made in ensuring contractual fairness and stability for affiliates.
Karhu said: “Our audit into and report on the fees applied to affiliates makes for interesting reading and shows that there is a lot more that needs to be done to improve the relationship between both parties.
“We accept the need to pay fees on revenue share agreements, but those fees must be fair and transparent so that affiliates have the opportunity to discuss them before entering into an agreement to promote and operator’s brand.
“But the report does more than just highlight this issue - it provides solutions and steps that can be taken to ensure fairness and transparency so that both parties can maximise the benefit of the relationship.”
