Improve Affiliate Offering: Increase Base Referral Rewards, Lower Cashback

Background

Today, players earn 14 - 28% of the house edge on their bets via cashback and 7 - 14% of the house edge on bets from their referrals (when taking out our variable cost fees to our games providers).

BAG Holding determines Bonus Multiplier, which can boost the reward rate from the base rates.

Full details on both programs can be found here:

• https://docs.bag.win/promotions/cashback-program
• https://docs.bag.win/promotions/referral-program

In addition to up to 28% cashback earnings, we reward gameplay with:

• $2,000 per week in casino leaderboard prizes
• $1,050 per week in poker leaderboard prizes
• $100,000+ dollars per week in Blast Gold (pending Gold’s exact value which will be determined in June during the 2nd $BLAST airdrop).

Proposal

Swap the above allocations such that affiliates earn 14 - 28% of the house edge via referral rewards and players earn 7 - 14% of the house edge on their bets from cashback rewards.

Rationale

With the launch of our Referral Dashboard and bonuses for milestones hit, we’re investing in referrals to drive organic growth (see: https://x.com/bagdotwin/status/1864806604945920428). This proposal represents us doubling down.

While increasing costs in one area, this proposal reduces cashback costs proportionally. The goal is to approximately offset and not negatively impact overall profitability.

Additionally, we will be able to further boost the referral rewards above 28% of the house edge for our platinum affiliates.