No Negative Carryover Explained: How High-Roller Policies Affect Affiliate Earnings

A “no negative carryover” banner can be misleading if one player has a large win. Revenue sharing means that you only earn commission based on the pre-defined revenue base of the programme, not just on deposits. If the revenue base goes negative, the contract will state whether this will be cleared, rolled over to the next month and/or individual player.

Negative carryover can be a bit confusing. Whilst you may have a NNCO in place to protect your general balance, you may also have a high roller policy in place to maintain your deficit. For example, Betsson Group Affiliates state they have no general negative carryover but do have specific high roller exceptions. As an iGaming affiliate, you need to look at the following: How is it calculated? How much is being pooled? What triggers the exceptions? How is it recovered? Essentially, how much will your affiliate commission be reduced in the future, for how long and on what evidence. Always read the signed terms first.

What Is Negative Carryover in RevShare?

This means you’re carrying forward a negative balance from one period to the next. When using RevShare, you need to know whether the negative carryover is being carried over as commissionable revenue or commission. Using the example of revenue of -€4000 in January and +€6000 in February, if carryover was being used then your commission for February would be €600 (30% of the remaining €2000). This assumes there are no other deductions or adjustments and that it is not being carried forward to separate pools. Negative carryover within a RevShare can cause delays in payment, but this does not necessarily mean you will have to pay back any money immediately as it depends on other terms within the contract.

Before looking at an NCO affiliate deal, you need to know where the deficit is coming from. Depending on how the account is being pooled (account wide, brand specific or individual player), this can lead to very different outcomes.

What “No Negative Carryover” Means in Practice

Generally this means that the qualifying negative balance will simply reset to zero at the point defined in the agreement. However, there may be cases where the positive and negative balances are combined before resetting.

Continuing with the above example, if we had a full reset in January then the 6,000 revenue base would carry forward into February. This would be paid out at 30% commission (1,800). There would be no positive payment from January. Remember that NNCO is simply a contractual term and does not guarantee that you will earn consistently. For example, Proper Bet have a published policy stating that they will reset each month but if you are a high roller then you will have your negative balance carried forward. Always check to see what is being reset, when and if there are any exceptions. There may also be a minimum payout amount so you may not receive a positive payment but this does not constitute negative carryover.

What Is a High Roller and Why Programs Have a High-Roller Policy

This is often a player that has placed large bets. The high roller provision may be based on one player having negative commissionable turnover, the overall outcome of the affiliate or both. This can be tricky to determine as simply taking a large deposit won’t show if this provision is triggered. Provisions are put in place to help mitigate the volatility of a large player winning. Instead of resetting the loss in line with general NNCO terms the loss may be left to recover against future activity. This will affect the exposure of the affiliate but may not affect the RevShare rate. Thresholds will vary between contracts. Betsson have published terms stating “any player with commissionable turnover in excess of €10,000” but other programmes will have their own definitions.

What is the threshold? How is it calculated? Over what period? What balance is used? Is it an automatic classification or at the discretion of the affiliate? Does it reset if further losses are incurred?

How High-Roller Isolation Works

High rollers will be isolated. This means that they will have a personal recovery rule. Their negative balance will be kept on a separate sheet and will be offset by their positive revenues. The general pool will be calculated based on the rules of the pool, including resetting monthly.

This only works if you have clarity on both sides. You shouldn’t have the positive results of other players being affected by the negative result of the high roller (as this is a personal recovery as outlined in the contract). However, you may not receive any commission from a positive result of the high roller, until their retained balance has been cleared. Proper Bet explain this as a personal offset. This is an example of a contractual isolation. It doesn’t mean that all programmes using isolation will do it the same. If you have a negative carry over affiliate, ask for an example report of the pool, high roller and starting balance. Ensure that you have reconciled the movements for each month.

Separate Pool and Separate Balance

The concepts of ‘separate pool’ and ‘separate balance’ are related but are not the same. The separate pool will tell you which players are being isolated. The separate balance will show you how much of a balance has been carried. When looking at these definitions please ensure that you are getting a guarantee that the high rollers are isolated. In a truly separate pool, Player A’s negative balance should only be recouped from Player A’s positive balance. Player B and C will be part of the general pool. If there are multiple separate players and they are using the same recoup balance then one player’s positive revenue could be used to offset another player’s negative balance.

Ensure you are checking the fields of the reporting. Are you getting data on the opening negative balance, current revenue, adjustments, recoup and closing balance? Are you seeing revenue or commission? If rates are changing then this needs to be identified.

What about if there are multiple brands, currencies and affiliate accounts? Having a separate tab on the dashboard does not mean it is separate. The agreement needs to state which results can and cannot be combined.

Time Limits and Notification Terms

You need to know what will happen once a retained deficit has occurred. Some agreements will have an end date for the recovery of the deficit. Others may have a time limit. For example, Luckiest Partners have terms that state that after six months from the date that the High Roller was triggered, a negative carryover will not be taken into account.

When does the timer start? Will it be based on the event date, end of month, date of classification or date of notification? This can cause different amounts of recovery to occur. Is there a reset if there is a win? Will the amount automatically be lost once the time has expired?

The notification should be clear. Ask for a written notification stating what caused the deficit, the period that it was calculated over and the amount that will be isolated. This should also state how long they have to challenge any mistakes. Unless stated in the agreement, you shouldn’t assume that if they don’t notify you then they won’t classify. When reviewing a High Roller Policy Affiliate, ask how they will notify you. Keep the monthly reports. You can’t have a verbal agreement on when the recovery will end.

Worked Example: Same Month, Three Policies

Use this hypothetical example: a constant 30% RevShare, no deductions and two revenue pools. In January, ordinary players generate +€6,000 and Player A generates -€10,000. In February, the figures are +€5,000 and +€3,000. Assume Player A qualifies for isolation where that policy applies.

1. Full account carryover: January closes at -€4,000, with no payment. February generates €8,000, less the €4,000 deficit. Commission is €1,200.
2. Complete monthly NNCO: January’s combined -€4,000 resets. February’s €8,000 produces €2,400 commission. January pays nothing.
3. Same-player isolation from January: the ordinary pool pays €1,800 in January and €1,500 in February. Player A’s deficit moves from €10,000 to €7,000; their February activity pays nothing.

Across both months, payments are €1,200, €2,400 and €3,300 respectively. These results depend on isolation starting in January and preventing same-month offset. If the contract only isolates a closing deficit, the outcome differs. Check both.

Negative Carryover vs Clawback: Not the Same Thing

Negative carryover refers to a loss being carried over into the next period. Clawbacks refer to a reversal of commission that has been credited/paid with the aim of recovering the commission. They can relate to the same account.

If you have negative revenue in January due to a winning player, then this would be a carryover. If you had a qualifying transaction and reversed some commission due to a refund, then this would be a clawback. The terms of the agreement may allow for this. For example, Betsson has a clause which states that commission must be repaid based on the amount of customer money that must be repaid. However, NNCO will not automatically cancel any refund, chargeback, fraud or correction clauses. Please check if any adjustments can be made to reduce any outstanding balances, reduce future earnings or if there is any obligation to repay. Please ask for the reason for each reversal, how much was reversed, what caused it to happen and what the contractual reason was. These should be kept separate to any losses from gambling so that you know why your balance has changed.

Where “No Negative Carryover” Can Be Offset

The reset only relates to the balance of the rule and will not tell you the revenue base, commission rate or what has been deducted prior to the reset. The programme may claim to have no negative carry over but other clauses will significantly impact the amount to be paid.

By working through the calculation step by step you can identify if there is a lower revenue. Look at the stake and win, what can be deducted from revenue, any pooling, retained balances, commission rate and finally if the amount is payable. If there are bonus costs, payment fees, taxes, chargebacks and administration costs then ask specifically about these. Not all programmes will have all of these costs and not all will apply the same calculations to the deductions. Look at the minimum activity requirements, payout requirements and what the termination terms are. If the balance is positive but below the threshold this is not negative carry over but will affect your cash flow. Look at the entire contract and do not think of NNCO as a guarantee of earnings.

How These Rules Affect Your Traffic and Player Choices

This can affect the volatility of your revenue, but should not be used to target specific players. You will have no idea of the outcome of a referral from your affiliate. High deposits do not guarantee a high commission. You should look at your source traffic in terms of approved acquisitions, settled revenue, payment history and concentrated revenue. If one player is contributing a large amount of activity, note this.

Use the same traffic assumptions and create scenarios based on different contract rules. This will show you how exposed you are based on the following scenarios; player wins, quiet recovery and balance at end of contract. Ensure when making decisions on acquiring players you are adhering to any relevant advertising and responsible gambling rules. Do not target vulnerable players, encourage higher losses or put pressure on players to clear their deficit.

How to Negotiate Carryover and High-Roller Terms

Be sure to negotiate the mechanism. A high RevShare may not make up for account deficits, unknown recovery periods or unexplained deductions. Perform an example calculation and request that the manager provides you with the outcome.

Be very specific with the following: Minimum Threshold, Single Player Isolation, Recovery Period, Notification and Reporting. If any concessions are made to the standard terms, be clear what clause they are replacing and get confirmation from any authorised person to commit on behalf of the contracting party. Be clear how any existing balances will be treated and any previously mentioned players. A new rate may not remove any deficits and a new policy may have some transitional arrangements. Be clear when the new rate will come into effect and whether any changes will be applied going forward.

Agree how any disputes around the calculation will be raised. Ensure that the signed terms and any written changes are kept together. A promise in chat is not a clear contractual promise.

Checklist: Questions to Ask Before You Sign

Before signing, ask for answers tied to clauses rather than a simple assurance that the programme offers NNCO.

• What revenue or commission balance carries forward, and when does it reset?
• Are results pooled across players, brands, products or affiliate accounts?
• What test triggers the high-roller policy, and who decides?
• Does isolation prevent same-month offset, or only preserve a closing deficit?
• Can recovery use only the same player’s later revenue?
• Is there a recovery deadline, and can a later event restart it?
• When must classification be notified, and what reports support it?
• Which deductions and clawbacks remain outside the reset?
• What happens to balances, disputes and referred players after termination?

Request a worked statement showing an ordinary pool and an isolated player over 2 months. Confirm the rate, revenue definition and payment threshold used. Retain the answers with the agreement so future statements can be checked against what was actually agreed.