Updated: 26.12.2025
Published: 26.12.2025

RevShare model (revenue share)

In affiliate marketing, the RevShare model (short for revenue share) is a commission structure where partners earn a recurring percentage of the revenue generated by the customers they refer. Unlike one-time payment models, RevShare creates an ongoing income stream tied to player activity, making it a cornerstone of iGaming partnerships.

Understanding what RevShare means and how it operates is essential for affiliates seeking long-term monetization strategies and operators aiming to align partner incentives with sustainable growth.

This guide explores RevShare mechanics, calculation methods, practical examples, and best practices for both affiliates and operators in the online gambling industry.

What is RevShare?

RevShare is a performance-based affiliate commission model in which advertisers share a fixed percentage of their revenue with affiliates who refer customers. Rather than receiving a flat fee per conversion, affiliates earn commissions proportional to the actual money generated by their referrals over time. The commission typically ranges from 20% to 60% in iGaming, depending on program terms, traffic quality, and geographic market.

In the context of online casinos and sportsbooks, RevShare agreements are usually calculated against Net Gaming Revenue (NGR) — the operator’s profit after deducting bonuse, partner fees and chargebacks from Gross Gaming Revenue (GGR). This ensures affiliates are compensated based on the operator’s actual profitability rather than top-line figures.

How does RevShare model work?

The RevShare model operates through a straightforward revenue-sharing arrangement between operators and affiliates:

Partnership agreement. The affiliate joins a program and agrees to terms specifying the revenue share percentage, calculation method (typically NGR-based), attribution window, and any deductions or caps.
Player referral. The affiliate drives traffic to the operator’s platform via unique tracking links. When a visitor registers and makes a first-time deposit (FTD), they become a “referred player” attributed to that affiliate.
Revenue generation. As referred players wager and lose money, the operator generates gaming revenue. Each month, the operator calculates the NGR from these players.
Commission payout. The affiliate receives their agreed percentage of NGR, typically paid monthly. Payments continue as long as referred players remain active — potentially for years.

The RevShare model formula

The basic RevShare calculation in iGaming follows this structure:

Affiliate Commission = NGR × RevShare Percentage

Where NGR is calculated as:

NGR = GGR − Bonuses − Fees − Chargebacks

For example, if an affiliate has a 40% RevShare deal and their referred players generate $10 000 in NGR during a given month, the affiliate earns $4000.

Examples of RevShare model

Example 1: Standard RevShare calculation

An affiliate operates a casino review site and refers 50 players to an online casino under a 45% RevShare agreement. In Month 1:

Total wagers from referred players: $100 000
Player winnings paid out: $92 000
GGR: $8000
Bonuses issued: $1500
Fees: $700
NGR: $5800
Affiliate commission: $5800 × 45% = $2610

If those players continue wagering in subsequent months, the affiliate continues earning 45% of their NGR indefinitely.

Example 2: Negative carryover scenario

Some RevShare agreements include “negative carryover”, meaning if players win more than they lose in a given period, the negative balance carries forward. Consider the same affiliate in Month 2:

GGR: –$2000 (players won more than they wagered)
NGR: −$2500 (after deductions)
Affiliate earnings: $0 (balance carried to Month 3)

In Month 3, the affiliate must “clear” this negative balance before earning new commissions. Many modern programs have eliminated negative carryover to attract affiliates.

Why is RevShare important?

RevShare has become the dominant commission model in affiliate marketing for iGaming due to several strategic advantages:

For affiliates:

Long-term passive income potential extending years beyond initial referral
Higher lifetime earnings compared to one-time CPA (Cost Per Acquisition) payments when referring high-value players
Natural incentive to focus on traffic quality rather than volume alone
Revenue that scales with player activity and operator success

For operators:

Acquisition costs spread over time rather than paid upfront
Partner incentives aligned with player lifetime value (LTV) and retention
Lower initial cash outflow compared to CPA models
Built-in quality control since affiliates benefit from sending engaged players

RevShare fundamentally transforms the affiliate relationship from transactional to partnership-oriented, encouraging both parties to prioritize sustainable player value over short-term conversions.

Common pitfalls and challenges

Despite its advantages, the RevShare model presents several challenges that both affiliates and operators must navigate:

Attribution disputes. Disagreements can arise over player tracking, especially in multi-touch customer journeys. Clear attribution rules (last-click, first-click, or linear) should be documented in contracts.

Income volatility: Monthly earnings fluctuate based on player activity, promotional periods, and luck variance. Affiliates may experience significant swings, including periods of zero earnings during negative carryover.

Delayed returns: Unlike CPA, RevShare requires patience. Affiliates may invest substantial effort before seeing meaningful income, as revenue accumulates gradually over player lifecycles.

NGR calculation opacity: Different operators define NGR differently. Some include licensing fees, fraud costs, or jackpot contributions in deductions, significantly affecting payouts. Affiliates should request detailed NGR breakdowns before signing agreements.Regulatory impact: Tax changes, new compliance requirements, or market restrictions can alter NGR calculations. Operators in regulated markets may face higher deduction percentages, reducing affiliate earnings.

How to optimize RevShare (tips and best practices)

For affiliates

Negotiate no-negative-carryover terms. Many programs now offer agreements without negative carryover. This protects against months where referred players win heavily.
Review NGR definitions carefully. Before signing, understand exactly what deductions apply. Request example calculations and clarify any ambiguous terms.
Consider hybrid models. Some affiliates combine a smaller CPA payment with reduced RevShare percentage. This provides upfront cash flow while maintaining long-term upside.

For operators

Publish transparent NGR formulas. Clear documentation reduces disputes and builds affiliate trust. Include example calculations in program materials.
Implement tiered RevShare structures. Reward top-performing affiliates with higher percentages as they reach volume thresholds. This approach, known as an affiliate commission tier, incentivizes continued growth.
Offer competitive baseline rates: Market-standard RevShare in iGaming ranges from 20% to 50%. Rates below this range may struggle to attract quality affiliates.
Use reliable tracking infrastructure: Server-to-server (S2S) postback integrations provide more accurate attribution than pixel-based tracking, reducing disputes and fraud.

Wrap-up: How to maximize RevShare model potential

The RevShare model represents one of the most effective ways to build sustainable affiliate income in iGaming. Success requires patience, strategic traffic optimization, and careful program selection. Affiliates who focus on player quality, negotiate favorable terms, and maintain diversified portfolios across multiple operators position themselves for long-term profitability.

For operators, implementing transparent RevShare programs with clear NGR calculations, competitive rates, and modern tracking infrastructure attracts quality affiliates and aligns incentives with business growth. Platforms like Blask provide analytics tools that help both affiliates and operators monitor NGR performance, track player cohorts, and optimize RevShare outcomes with data-driven insights.

Whether you choose RevShare, CPA, or a hybrid approach, understanding the mechanics and trade-offs of each model is essential for making informed partnership decisions in the competitive iGaming affiliate landscape.

FAQ

What is a good RevShare percentage in iGaming? Standard rates range from 20% to 50% of NGR, with premium affiliates sometimes negotiating up to 60%. The appropriate rate depends on traffic quality, geographic market, and whether negative carryover applies.

RevShare vs CPA: which is better? Neither is universally superior. CPA provides immediate, predictable income ideal for affiliates with high traffic volume or limited cash reserves. RevShare offers higher lifetime earnings potential for affiliates who generate quality, long-term players. Many experienced affiliates use hybrid arrangements combining both models.

How long do RevShare payments last? Agreements vary. Some programs offer “lifetime” RevShare continuing as long as referred players remain active. Others limit payments to 12–36 months. Always verify duration terms in the affiliate agreement.

Can RevShare earnings become negative? In programs with negative carryover, yes. If referred players win more than they lose, the affiliate may accumulate a negative balance that must be cleared before earning future commissions. Many programs now eliminate negative carryover.

Is RevShare only used in iGaming? No. RevShare models exist across SaaS subscriptions, financial services, e-commerce, and streaming platforms. However, iGaming remains one of the largest verticals utilizing RevShare due to the recurring nature of player activity.