Marketing
Revenue Share
Definition
An affiliate commercial structure paying ongoing percentage of net revenue from acquired players. The historical affiliate model in most markets, increasingly replaced by CPA in mature regulated markets.
Why it matters
Revenue share was the historical affiliate model in online gambling, with affiliates receiving 20% to 40% of NGR from acquired players for the duration of the relationship (some contracts include lifetime relationships, others apply caps). The model aligned affiliate and operator economics: affiliates were incentivized to deliver high-value engaged players because their compensation tracked player value over time.
The shift from revenue share to CPA in many markets has been driven by several factors. Listed operators prefer predictable acquisition cost. Bonus and responsible gambling restrictions in regulated markets reduce long-tail player value, making revenue share less attractive to affiliates. Some markets explicitly restrict ongoing revenue share affiliate models. The trajectory in major regulated markets is dominantly toward CPA, with revenue share persisting more in markets where licensing or commercial dynamics support it. Hybrid arrangements split the difference for selected affiliates with negotiated terms.
Frequently asked questions
Why are affiliates shifting away from revenue share?
Multiple factors. Cash flow preferences (CPA delivers upfront payment versus ongoing trail). Regulatory uncertainty around long-tail player value in mature regulated markets. Some markets explicitly restrict ongoing revenue share. The combined effect has been a shift toward CPA in regulated markets, though revenue share persists in many international and emerging markets.
What's a typical revenue share percentage?
Historically 20% to 40% of NGR, with the higher end reserved for top-tier affiliates and the lower end for standard relationships. Specific percentages are commercially negotiated. Hybrid arrangements typically pay a lower revenue share percentage combined with a CPA upfront component.