Revenue Waterfall

A revenue waterfall describes the step-by-step deduction process that transforms GGR (Gross Gaming Revenue) into the final number used to calculate an affiliate's RevShare payment. Each step removes a category of cost — bonuses, chargebacks, payment processing fees, platform fees, licensing levies, and sometimes administrative overheads — until the operator arrives at NGR (Net Gaming Revenue) or an operator-specific "net revenue" figure.

The structure of the waterfall matters because every deduction layer reduces the affiliate's earning base. Two operators offering "30% RevShare" can produce vastly different payouts depending on which costs they deduct before applying the percentage. Affiliates evaluating programs should always request the full waterfall breakdown, including which revenue share deductions are applied and in what order.

Common deduction categories include: bonus costs (welcome bonuses, free spins, cashback), chargeback losses, payment processing fees, jackpot contributions, licensing and gaming taxes, and platform or software fees. Some operators also deduct a fixed administrative percentage. The presence or absence of each layer — and the order in which they are applied — determines the effective RevShare rate the affiliate actually receives.

Operators who publish their revenue waterfall transparently tend to build stronger affiliate relationships. Ambiguous or undisclosed deductions are a common source of friction in affiliate programs. The waterfall is closely related to concepts like negative carryover, which determines whether a losing month's deficit carries forward to reduce future earnings.