Negative carryover in iGaming affiliate deals, explained
Negative carryover is a clause in the revenue share agreements operators sign with affiliates, such as Primestake’s casino comparison brands. It decides what happens when an affiliate’s referred players produce negative net gaming revenue (NGR) in a month, which happens when those players win more than they lose after deductions. With negative carryover, the deficit is carried into the following month and must be earned back before the affiliate is paid again. Without it, the balance resets to zero each month.
A worked example
The figures below are illustrative, not benchmarks.
| Month | NGR from affiliate’s players | With carryover: balance | With carryover: payable | Without carryover: payable |
|---|---|---|---|---|
| 1 | 10,000 | 10,000 | Share of 10,000 | Share of 10,000 |
| 2 | -8,000 | -8,000 | Nothing | Nothing |
| 3 | 5,000 | -3,000 | Nothing | Share of 5,000 |
| 4 | 6,000 | 3,000 | Share of 3,000 | Share of 6,000 |
With carryover, the affiliate earns nothing in month 3 and a reduced amount in month 4. Without it, the operator absorbs the loss in month 2 and pays on months 3 and 4 in full.
Why operators use it
From the operator’s side, revenue share is a share of results. If one player wins a large jackpot or a series of big bets, the operator’s revenue from that affiliate’s players goes negative. Paying the affiliate in full the next month, as if the loss never happened, means the operator carries all the downside and shares all the upside. Carryover keeps the share symmetrical over time.
It is most relevant for sportsbooks, where single results can swing NGR heavily, and for affiliates with a small player base, where one winner dominates a month.
Why affiliates resist it
From the affiliate’s side, negative carryover can wipe out months of income because of a single player the affiliate did not choose and cannot influence. A small affiliate with one high-stakes winner can find itself unpaid for a long period. Some affiliates treat programmes with indefinite carryover as a reason to send their traffic elsewhere.
Common variations
| Variation | How it works |
|---|---|
| No negative carryover | Each month resets to zero |
| Full carryover | Deficit carries forward until earned back |
| Time-limited carryover | Deficit carries forward for a set number of months, then resets |
| Per-player carryover | Only the balance of the specific player who caused the loss carries forward |
| Threshold carryover | Carryover applies only above a certain negative amount |
| Brand or product split | Casino and sportsbook balances are calculated separately |
A per-player or threshold approach is often the fairest middle ground. It addresses the single-winner case without penalising the affiliate for a broad, normal month.
How it interacts with the NGR definition
Carryover is calculated on NGR, so the NGR definition matters as much as the carryover clause. If NGR deducts bonuses, gaming taxes, payment fees and supplier fees from gross revenue, a month can turn negative even when players lost money overall. In markets with high bonus costs, this is more common than in markets where bonuses are restricted. Sweden’s rule that a licence holder may only offer a bonus on the player’s first gambling occasion (Gambling Act, Ch. 14, § 9) limits ongoing bonus deductions there.
Ask for a monthly NGR report that shows each deduction separately. It makes carryover balances easy to check and reduces disputes.
Questions to ask when reviewing a programme
If you are reviewing your own programme against the market, or an affiliate asks about carryover, these questions help:
- How often have affiliates in the programme had a negative month, and what caused it?
- Were those months driven by a single player or by a general pattern?
- How much commission was deferred by carryover in the past year, and did affiliates leave as a result?
- Would a per-player or time-limited rule have produced a fairer result?
The answers show whether carryover protects you against real risk or mainly reduces payouts to small partners. If it is the latter, the programme may be losing affiliates whose players are worth keeping.
Contract terms to agree
- Whether carryover applies, and in which form
- How long a deficit can carry forward before it resets
- Whether casino and sportsbook are calculated together or separately
- What happens to a negative balance when the agreement ends
- Whether a hybrid deal’s CPA component is affected by the revenue share balance
- The reports the operator will provide to support the calculation
A clearly written clause is worth more than a favourable one that neither side can verify.
Our position
Primestake works on revenue share, CPA or hybrid terms and discusses carryover openly at the start of a partnership. See how Primestake structures operator partnerships or write to partners@primestake.org.