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? So How Does It All Work?
#1 Game Suppliers Develop The Game
A game is made, both in terms of frontend and backend, solely by the studio and its developers.
They develop the RNG mechanisms, test it, get it licensed and audited, and all the other things a game needs to be released and played by millions around the globe.
#2 Casinos Agree To Offer It For a %
The studio announces the release of a new game, and they offer demos to all the top online casinos in Canada. If the operator thinks the hype will be high enough, they agree to buy the game.
They don’t pay the supplier (the studio) a fixed price. Instead, the amount they have to shell out is percentage-based.
#3 The Casino Pays Game Supplier Based On The GGR
The percentage online casinos pay to suppliers isn’t taken from the cumulative amount of money wagered. Since players win from time to time, casinos would end up paying a sum that’s too big for their sales revenues, or as it’s called in the iGaming industry – Gross Gaming Revenue (GGR).
GGR is basically the difference between the amount of money given to an online casino and the money they give out in the form of bonuses and legitimate winnings.
By taking a fixed percentage of the casino’s GGR, the supplier is in a position to earn lots of money if people play their game a lot at that particular site. Also, the deal works for the casino, as they’ll have to pay a flexible amount, even if traffic goes down.