Why casinos pay royalties for every spin

In the slot industry, money moves at the level of events. Each spin is a transaction with a bet, win, tax and commission. The per-spin royalty/fee-per-wager model ties the content provider's reward to this atomic event. Below - why operators and providers need it, as it is believed, where it is applicable and how it differs from the classic rev-share according to GGR/NetWin.

1) What are spin royalties

Definition. Fixed or even amount/percentage deducted from each bet (or bet package) for a specific game, before or after the winnings are calculated - according to the contract. It is often sold as a microfie (for example, €0.0005- €0.02 per spin) or as a micro percentage of the bet (for example, 0.2-1.0%).

Where it meets.

in direct integrations with large operators;

within aggregators/RGS as transparent billing of multiple studios;

under brand/mechanics licences, where the rightholder takes their share of each event.

2) Why operators agree to pay "for spin"

1. Predictability costs.

With highly volatile titles, GGR can "jump," and microfie per spin - stably. This makes it easier to plan the margin and budget of the promo.

2. Simple mathematics for the showcase.

For categories with active jackpots/bonfiches, the cost of content is easier to count from the volume of traffic (bets), and not from the result (GGR).

3. Listing acceleration.

When dozens of studios enter through the aggregator, per-spin gives unified billing without delaying releases with detailed "waterfall" Jurassic mathematics.

4. Risk distribution.

If a low RTP profile or a market with high GGR taxes is selected, r/s over NetWin can give a "thin" margin. A fix from each back smooths out the extremes.

5. Bonus compatibility.

The contracts often stipulate: free promo spins are paid at a reduced rate or not paid at all - it is easier to fix this event at the "back" level.

3) Why it benefits providers

Independence from GGR "swing." Rare large winnings do not reset the payment to the provider - the income is tied to the volume of the game.

Transparent reporting. Event telemetry (spin logs) = direct basis for invoices.

Incentive on DAU/Retention. The provider is interested in sustainable traffic, not just "high roller spikes."

Fair payment for demos/tournaments. You can bet micro on tournament/demo spins (where admission allows) without distorting NetWin.

4) What is considered: formula options

4. 1. Fix Microfi

`Royalty = Count(spins_eligible) × Fee_per_spin`

spins_eligible - backs subject to payment (free backs for promo, technical doubles, cancellations are excluded).

Fee_per_spin can be tir: the higher the turnover/month, the lower the phi.

4. 2. Percentage of bet (turn-based)

`Royalty = Σ (Stake_i × Rate_turnover)`

The percentage is usually small (0.2-1.0%), but with large volumes it gives comparable revenue with 30-50% from NetWin.

4. 3. Hybrid with NetWin/GGR

`Royalty = max(A × spins, B × NetWin)` или `Royalty = C × spins + D × NetWin`

Used for "hedging": the provider receives the minimum from traffic and the upside from the result.

5) Where are the boundaries and exceptions

Free spins: often excluded from the base or charged at a reduced rate (for example, 25-50%).

Jackpot contributions: Usually do not affect per-spin, but are reflected in the NetWin part of the hybrid model.

Test/demo modes: either free or "zero" tariff; it is important to explicitly prescribe.

Markets with a ban on turnover commissions: in some jurisdictions, only the NetWin/GGR approach is allowed - check local rules.

6) Pros and cons on the sides

For the operator

Pros: predictability, simple reporting, compatibility with bonuses/tournaments.

Cons: with a low GGR margin, the fix can "eat up" the share; tight control of "optional spins" is required.

For the provider

Pros: protection against volatility of the result, motivation for a stable DAU, understandable invoicing.

Cons: dependence on operator traffic; with high NetWin, the fix may be lower than the "percentage of the result."

7) Why classic rev-share isn't always enough

Rev-share over NetWin/GGR is sensitive to:

progressive jackpots (jumps in the result), seasonality of bets, aggressive bonus policy (if cost of bonus is included in the database), taxes and advertising restrictions (narrow the operator's margin).

Per-spin offloads these sensitivities, turning part of the deal into traffic money.

8) How it lives in reporting and logs

Event base: for each spin, 'timestamp, session_id, game_id, build_hash, stake, currency, spin_type (cash/free/tournament), device, market, operator_id' are fixed.

Audit "optional spins": filters for canceled/duplicated/autotest events.

Сводные отчёты: `spins_total`, `spins_eligible`, `fee_per_spin`, `turnover`, `GGR`, `NetWin`, `royalty_due`.

True-up: quarterly reconciliation (exceptions, exchange rates, late-posting).

9) Scenario examples

Example A - Fix for Spin

50 million paid spins/month, fi €0.001 → royalties €50,000.

With GGR jumps, this does not threaten the provider's payment.

Example B -% of rate

Rate turnover €200 million, rate 0.25% → royalties €500,000.

If NetWin is thin (taxes/bonuses), the operator still has a margin due to the low rate.

Example C - Hybrid

Royalty = max (€0.0006 × spins, 35% × NetWin).

With failed months, protects the provider; with successful ones - gives upside.

10) Where the model is particularly pertinent

High volume/low margin (turnover tax or GGR markets).

Tournaments, seasonal events, demo showcases, where the share of free spins is large and NetWin is unstable.

Brand slots, when you pay the copyright holder "from every back" - it is convenient to mirror the conditions down the chain.

Multi-studio aggregator catalogs - billing unification.

11) How to agree on a contract: checklist

Definition of "optional spin."
Tariff: fix € or% of the rate; tir thresholds; currency and FX.
Hybrid with NetWin/GGR: min/max formula, calculation priority, examples.
Bonuses/freespins: what is included/excluded, special bets.
Jackpots: who pays the dues, where it's reflected.
Reporting: field log scheme, time zone (UTC), CSV/API format, deadlines.
Auditing and true-up: validation rights, SLA of disputed cases, data retention.
Jurisdictions: compliance with local rules (prohibitions on turning-fee).
Caps/floor: protecting the margin of the parties on extreme scenarios.

12) Typical mistakes and how to avoid them

1. Uncertainty on free spins. - Clearly register charging or exception.

2. Double counting of canceled/repeated events. - Deduplication by '(session_id, ts, nonce)'.

3. Percentage of rate in "forbidden" jurisdiction. - Check of local mode; fallback на NetWin.

4. Lack of shooting ranges. - Enter the rate reduction when the volume increases (motivation aligned).

5. No true-up. - Quarterly summarize API reports and invoices, record FX/delays.

13) FAQ

Is it more expensive for operators than rev-share?

Not necessarily. With weak margins, NetWin per-spin can be even more profitable, because costs are predictable and lower than the risk of quarter drawdown.

And if the game is super-profitable, the provider will not "receive less"?

For this there are hybrids (at least per-spin +% from NetWin) or tir bets.

Why pay for "empty" (losing) backs?

Royalties are paid for the use of IP/content and infrastructure in each bid, not the outcome. The math of winnings is already factored into RTP.

Can you take royalties for "spin packs"?

Yes: aggregators often count by batches (for example, 10k spins = one billing block).

14) The bottom line

Royalties "for each spin" is an event-based monetization of content that perfectly matches how the slot technically lives. It gives providers protection from the volatility of the result and an incentive for stable traffic, and operators - predictability of costs, simple billing and compatibility with bonus programs. In conjunction with hybrid formulas and clear logs, per-spin turns into a convenient standard that speeds up releases, reduces disputes and makes the industry's cash flow more transparent.