Topic: Who is the money manager? is it a casino or game provider? - page 3. (Read 482 times)

I have no idea if they are purchasing it or they're allowed to use the games and they're just paying royalty fees to the game providers. But if it about the finances, it is the casino, they've bought/rented or paying the the games from the game provider and all the finances, expenses will come to them but then the profit is obviously going to go to them. That's why it's like a coordinated business and they are having set of games that they think is in demand based on their demographics and data from their customers.

It's like a normal business cycle, where a company is paying for a service.

We can consider the game providers as suppliers in the usual business and their service is to offer their games to the gambling sites. If both parties agree, the gambling sites will now pay for these games and will be added to gambling sites.

Even without knowing the main agreement, it should be obvious that the main finance that pays the players will come from gambling site owners. The game providers are already settled and paid by the gambling sites and I don't think that gambling sites are giving commissions to these game providers.

Dont know if this has been already shared or pointed out but this one would be explaining all.

It depends on the game. For example, a progressive jackpot slot win will be paid by the game provider. That’s because the same game is being played all around the world, via online casinos and physical establishments, and linked over a network. Every losing bet contributes to the overall jackpot that will eventually be won by a single player. Therefore, you can imagine what a nightmare it would be for each casino to collect money towards the jackpot, report that to the game provider, and eventually pool it to pay the jackpot. So, it makes perfect sense for the game provider to provide this service, then to either pay the jackpot-winning player directly (very rare) or via the online casino or physical establishment (common). Some slot cabinets, on the other hand, might be owned by the casino or rented and will payout from the wagers placed directly on the machine.

Source: Link

This explains all i should say.Somewhat this kind of question do really clears up on whose gonna pay up into those jackpots on which those provider would really be doing
specially if its a progressive jackpot which it had been mentioned above.

Isn't it done automatically? At least that's what I would do. That, or casinos pay providers a monthly standard fee of x amount depending on the contract that they have. May vary though between two types, a standard fee or x amount depending on y usages or y earnings of the casino themselves via the game that they provided.

As for the agreement between casino and the provider, I'm pretty sure providers has their game licensed, but casinos don't necessarily buy it I think? It's more like a rental instead. Feel free to correct me if I'm wrong though.

I don't know much about management like this because all you are asking about is how gambling sites work and I only have little knowledge from local sites that I have learned when dialogue with the promotion team or influencers.
From what I know, the money used by gamblers will go to the gambling site which is managed by the site team and of course the distribution has been determined from the start.
Providers will receive deposit of profits they can make and on local gambling sites there are some taxes that are charged but for crypto sites I don't know whether there are similarities or not.
The provider only provides services in game and for its continuity the management is entirely the responsibility of the casino team, different when problem occurs there may be provider who will also take part in handling any problems that occur in their game.

But by the way, why are you asking something like this, does this have an influence on the gambling activities you do?

I assume in most cases is the casino as we withdraw money directly from the casino wallet when we win.Most likely the casino pay a fee to the providers to link them to their platform through some API-s and that is the most logical solution in my opinion.There is no need for the game provider to interfere with the casino.If you see in Pragmatic Play website they only allow casinos to contact them as they reply to only casinos which shows they link their slots through these API-s in the casinos that pay for their services.

Providers who control the money and own the casino sites only share the source and sell the games. Then gambling site owners use them for business. So it can be said that the gambling site owner is the money manager. Game providers may receive a percentage of the site's profits, but the rest of the profits remain with the casino site's owners. Because of this, game providers can never be money managers

Game providers provide games for casinos that's their only work and they are paid based on their agreement, which is a profit-sharing business, it's the casino that accumulates, distributes, and pays gamblers for their winnings so they are responsible for every monetary obligation so they are the one and should be managing the money coming from the platform, and casinos also pick their games providers.
Games providers make money from profit sharing, and from selling their software, it's a cooperation that benefits both parties, but casinos are the ones who make a lot of money from the operation.
Game providers make it easy for casinos to operate as casinos they only need to promote and address the concerns of the players while the game providers only need to check that their software is running smoothly.

The gaming providers should be on a different deal with the casino. It's like having some necessities in the casino. Gaming providers are the OS of the casino. Without it a casino won't run effectively to provide the best for customers, hence the casino runs the business, controls finance, then pay a price for each gaming provider on the casino. It's more like a fixed price, and have duration. Such deals should be annually. The gaming providers work for the casino, and the administrator of the casino pays them for their services. The owner of the casino takes care of this before setting up a casino. That's why setting up one is quite very expenses due to the charges and needed properties before one is eligible to get a gaming provider to his casino. Which money is also need to achieve it. Since the owner of the casino started his business with money earned outside the casino, the gaming provider has no business with the amount of money the casino earns. Their business with the casino is dependent on the casino, whether to or not renew.

What you are referring to is 'the house' and not 'house edge'. You meant that the casino is the one that will have control over the finances and not the game provider. That is true. But it is not the house edge but the house. The house is the casino, while house edge is something different completely. House edge is the casino advantage, the advantage the casino has over its players.

Who do you think is the money manager? Game providers render their services to casinos and they get paid from the casinos, it's obvious, isn't it? Anyway it's not bad that you ask, maybe many don't know.

However the casino gets the game is less my concern, because the owner of a casino is the one to make all the money, games provider only makes games and since this somehow gives gamblers the confidence to trust the casino even more the casino have to settle them some percentage of it's earning.

How they will pay is what I don't know, either it's one time payment/settlement or non-stop gradual payment, that's between the casino and the game provider.

Casinos handle most of the money. Casinos and Pragmatic Play or Play'N Go game developers have a synergistic but separate relationship.

Casinos usually buy games or share earnings with game producers. Casinos may provide a variety of games while controlling the purse strings with this setup.

Looking at it from a normal point of view, the casinos enter into contracts with these third-party game providers, and the contract is to provide service for the casino.

They get paid for the service based on their agreement with the casino, and any disputes or issues from the end of the game providers, like odd miscalculations, etc., are to be handled by the game providers, and I believe their contracts are limited to this range.
 
The casino is to be fully in charge of the finances of whatever comes in and out of the casino. If there is any winning, they have to pay gamblers from those funds, and it will really look bad if the finances are being managed by the game providers, as casinos will need authorization in order to process a withdrawal.

I'm not familiar with that kind of trend in gambling, to be honest, as long as the only thing I know is that most of the time when it's like that in a casino, usually the one who has control over the finances is, of course, the house edge, as far as I know.

Because the game providers seem to be the only ones who appear to be partners of the casino itself, and they use the platform of the real owner of the casino gambling games. It seems like they are sister companies; that's where they came from, so they seem to have different management.

Yes, I know this isn't something that's publicized so I'm curious about the system between casinos and game providers. Because my next question is: Who will regulate the win rate in the game, is it the casino or the game provider? For example, in slot machines, does the casino or game provider determine the RTP of the slot machine and is this based on the house edge or not?

I once asked one of the customer support at a casino when I was having trouble winning on a slot machine and they told me to wait for the casino to verify the slot machine provider. So I think maybe the casino is just a bridge between the gambler and the game provider and the casino will get a commission from the game provider. And when someone wins, the person who pays is the game provider through the casino.

Apart from that, if we play on a slot machine then we will be directed to another address whose domain is different from the casino so in my opinion we will be directed directly to the game provider and if the casino buys the license and software then we don't need to be redirected to another domain, but still in the same casino domain. But this is just my assumption, I don't know how casinos work and what their agreements are with game providers

We all agreed its the casino because they are the business entity here, and they have a choice on what game providers they will install on their platform, the agreement is based on shares of the profit or fees for using their software for a specific period, its the casino that face all the issues and situations, when people accuse a casino its name and the people behind them are the one who address the issues, all the game provider can do it make sure that their games are running smoothly.

Casinos manage their finances because it is their business and the casinos already work with the slot providers. There may be a commission or license purchase that the casino must pay to its slot provider. I don't know what the process is because I'm not part of a casino, and I don't know what the requirements are if I want to use slot games from a particular provider. Only those who work inside the casino know about it and if you ask the support service, they won't know because it's not part of their job.

It depends on the contract agreement or engagement. They may decide to have a agreement that allows the game provider have commission from the percentage of those games played while at a point the casino buys into higher percentage and pays a lower commission to the game provider. They can also buy the right over from the game provider. So at every point it depends on the agreement reached but where the casino has bought the right of the game then they take absolute charge of the game and proceed.

The issue is that what you are asking is not often made public as the terms of the agreement would vary among clients and parties involved. What I expect is that all that is needed would have been coded in the program we are talking about and it could be well-managed by the provider or house or both even if they are not the writer or the owner. The splitting of the gains will be well spelt in their terms of buying and usage as well as this is a business and I am sure that the percentage that both parties will take can't be the same with all casinos as it will be subject to how best you can negotiate and what you are bringing better into the table, like the capacity of the customers and the liquidity.

This is also subject to frequent reviews depending on the progress of the casinos, and I am sure that most of these providers will always want to shift ground depending on the current size of the casinos and for the competition's sake. Also, all the things that should be managed in the games can't be rigid, the developers will give the casino some high degree of autonomy to set what they want, so it can't be all about the provider. They will be reasonable enough to allow easy management by the casino as both are in this together with the casino at the user end.

It should be the casino and the game provider is a third-party vendor that serves the casino's needs for games, it's the casino that builds its reputation, name, and license and they are the ones who address issues so they are the ones managing the money and the provider depending on their contract and terms gets a share of the profits or payment from the license for the software.

I am not a casino operator but if I operate a casino I want a per-share basis of more than one one-time fee because the game provider will address the issues right away if there's one because they are commission basis.
If the casino bought the license of the script and the seller has weak support, the casino will have to wait for the seller to address the issue and they might even ignore it because the software is already paid.