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Why does Party etc. care about rakeback?

  
 
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Strung
Old 05-09-2005, 04:44 PM     Post subject: Why does Party etc. care about rakeback? #1 (permalink)  
Straight

Join Date: Mar 2005
Posts: 209
Strung
The way I understand it, when someone is signed up from an affiliate, the affiliate can either take a lump sum payment for the referral or else they get a % of the rake that person generates.

If this % is fixed for as long as the player is active what do they care what the affiliate does with this rake money they receive? If they are getting 20% of this players rake and they want to give 20% of that back to the original player WHO CARES? The money going to the player is not extra money Party or Empire is giving to the player it is a % they are giving to the affiliate. It's their money so why can't they do as they wish?
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eeeee
Old 05-10-2005, 09:58 AM #2 (permalink)  
eeeee's Avatar
Full House

Join Date: Jan 2005
Location: SoCal
Posts: 906
eeeee
The explaination I heard made sense to me.

Party always had a policy against rakeback, but didn't enforce it. It was fine to bring in new customers.

Now, Party is planning to 'go public' and sell stock. Rakeback and affiliate payments could be construed as American citizens operating a casino. Party wants a clean bill of health for the public offering and doesn't want to be making payments (or aiding an affiliate to do so) to American employees, crossing state lines, etc.
This sounds like a stretch, and I'm not explaining it well, but it is possibly the best explaination.
I'm a know-it-all.




No, really.
 
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