iGaming Broker Fees: How Casino and Affiliate Brokers Are Paid
The short answer
Most sell-side iGaming brokers are paid a success fee: a percentage of the sale price, payable only when the deal completes. On our mandates the fee is typically 5–10% of the consideration, depending on whether the mandate is exclusive and on the size of the deal, with a minimum fee on exclusive mandates. We do not charge an upfront retainer on a sale mandate.
The percentage is only half of the cost. What it is calculated on, how long the broker can claim it after the agreement ends, and whether you owe it on a buyer you found yourself, matter as much as the headline rate. This article covers each of those, with a worked example in EUR.
Fee models in the market
You will meet five broad ways of pricing a sale. Most iGaming brokers use the first or a mix of the first and third.
| Model | How it works | Where it fits | Watch for |
|---|---|---|---|
| Flat success fee | One percentage of the consideration, paid on completion | Small and mid-sized casino, sportsbook and affiliate deals | The definition of consideration, and the minimum fee |
| Sliding scale | The percentage falls as the price rises, for example a higher rate on the first million and lower rates above it. The Lehman formula is the classic version | Larger deals, where a flat percentage would produce a very large fee | How the bands are set, and whether earnouts count |
| Minimum fee | A floor that applies when the percentage would produce a small amount | Exclusive mandates on smaller assets | Whether it applies to a sale to a buyer you introduced |
| Retainer plus success fee | A monthly or upfront fee, often credited against the success fee | Larger or longer processes, and many buy-side searches | Whether the retainer is refundable or credited |
| Marketplace listing | A listing fee plus a success fee, with the seller doing most of the work | Small sites sold through self-serve platforms | How much buyer vetting and negotiation is actually included |
A lower headline rate is not always cheaper. A 6% fee on a wide definition of consideration can cost more than 8% on a narrow one.
What the percentage is calculated on
The fee clause will apply the percentage to a defined figure, usually called total consideration or the purchase price. iGaming deals are rarely paid in one cash transfer, so the definition decides how much you actually pay.
Items that are normally included:
- Cash paid at closing
- Deferred, instalment and earnout payments, but only as and when you actually receive them
- Debt of the business that the buyer takes over or repays
- Shares or other securities issued to you as part of the price
- Repayment of shareholder or director loans at closing, where that money is really part of the price
Items that are normally excluded:
- Working capital and completion-accounts adjustments that do not result in a net payment to you
- Money the buyer puts into the business after closing to fund growth
- Shareholder loans you leave in the business that are not repaid
The timing rule on earnouts is the most important protection for a seller. If the earnout is based on NGR over the next 12 months and the business underperforms, you should pay commission only on what is paid out, not on the maximum that could have been earned.
Most agreements also stop the price from being dressed up as something else. If part of the price is paid as a consultancy fee, a salary or a licence fee, it usually still counts towards the commission.
Exclusive vs non-exclusive mandates
The type of mandate changes the rate, when the fee is owed and what protects each side.
| Non-exclusive | Exclusive | |
|---|---|---|
| Fee level | Lower end of the range | Higher end of the range |
| Fee owed when | A buyer the broker introduced completes the purchase | Any sale during the mandate, whoever found the buyer, except named excluded buyers |
| Minimum fee | Usually none | Usually yes |
| Other brokers and listings | Allowed | Not allowed during the exclusivity period |
| Tail period after the mandate ends | Covers buyers the broker introduced | Covers buyers on a written list the broker delivers at the end |
| What the seller gets in return | Freedom to run several channels | A broker who invests fully: full buyer outreach, CIM, negotiation and process management |
Two terms protect sellers on exclusive mandates and are worth insisting on.
Excluded buyers. Anyone you were already talking to before signing goes on a schedule. A sale to one of them carries no commission.
A closed tail list. After the mandate ends, the broker should give you a dated list of the buyers it actually introduced. Only those buyers can trigger a fee in the tail period. Without a list, a tail clause can catch almost any future buyer.
Worked example
The figures below are illustrative, and the 8% rate is chosen only to make the arithmetic easy to follow.
An online casino sells for a headline price of EUR 1,200,000. The buyer pays EUR 800,000 at closing and up to EUR 400,000 as an earnout, based on NGR over the following 12 months. The business performs below plan and the earnout pays out EUR 250,000. A completion-accounts adjustment of EUR 15,000 is settled in the buyer’s favour.
| Item | Amount (EUR) | Fee at 8% (EUR) | When paid |
|---|---|---|---|
| Cash at closing | 800,000 | 64,000 | At closing |
| Earnout actually received | 250,000 | 20,000 | As each instalment is received |
| Earnout not earned | 150,000 | 0 | Never |
| Working capital adjustment | 15,000 | 0 | Excluded |
| Total | 1,050,000 received | 84,000 |
On a definition that charged the fee on the full headline price at closing, the same deal would have cost EUR 96,000, all due on day one. That EUR 12,000 difference is the earnout timing rule at work.
What to check in the fee clauses before signing
Read these points in any broker agreement, ours included. Our broker agreements guide covers the rest of the contract.
- The definition of consideration: what is included, what is excluded, and how earnouts and deferred payments are treated
- When each part of the fee is due, and that nothing is owed on money you never receive
- Any minimum fee, and whether it applies to every sale or only to completed sales during the mandate
- The length of the tail period, and whether it is limited to a written list of introduced buyers
- Excluded buyers: whether you can name people you were already talking to, and when the list must be delivered
- Withdrawal or break fees if you decide not to sell. Some agreements charge one; you should know before signing
- Expenses: what the broker pays for, and whether any expense needs your written approval first
- How the price is paid: whether funds go through escrow, and how the commission is deducted
- Termination rights and notice periods on both sides
If a clause is unclear, ask for a worked example in writing, like the one above. A broker who is confident in the terms will give you one.
What the fee pays for
A success fee buys a sale process, not a listing. On a sale mandate we cover the marketing costs, and the fee pays for the work between the first call and the money arriving:
- A valuation range with the method and the adjustments shown
- A blind teaser and a CIM, so the business is marketed without identifying you before an NDA is signed
- Direct outreach to a network of more than 1,000 qualified buyers: operators, affiliate groups, platform owners and investors
- Buyer vetting, NDAs and controlled release of information
- Negotiation of price and structure through to a signed LOI
- Running due diligence and coordinating escrow through to closing
Since 2021 we have taken more than 110 mandates and closed 52 transactions, with a median of 90 days from signed mandate to closing. The fee is the same whether a deal takes 13 days or six months, which is one reason we price on success rather than time.
Drafting the purchase agreement itself is legal work. We can help with it on request, priced separately, and many sellers use their own lawyer for that step.
FAQ
What do iGaming brokers charge?
Most charge a success fee as a percentage of the sale price. Ours is typically 5–10% of the consideration, depending on deal size and whether the mandate is exclusive, with a minimum fee on exclusive mandates.
Who pays the broker’s fee?
On a sell-side mandate, the seller pays. On a buy-side mandate, where the broker searches for an asset on a buyer’s behalf, the buyer pays under a separate agreement.
Do I pay anything if the business does not sell?
Not on our sale mandates: the fee is a success fee. If you withdraw the business from sale under an exclusive mandate, you reimburse only the marketing costs you approved in writing in advance, and nothing else.
What if I find the buyer myself?
Under a non-exclusive mandate, no fee is due on a buyer the broker did not introduce. Under an exclusive mandate, the fee applies to any sale during the mandate, except to buyers named on the excluded-buyers schedule when you signed.
Is the fee negotiable?
The rate reflects the deal size, the type of mandate and how complex the process will be. Larger deals generally carry a lower percentage. Ask for the terms in writing with a worked example.
How is the commission paid?
We coordinate escrow on our deals, and the commission is normally settled from the escrowed funds when they are released. If the buyer pays you directly, the commission falls due on receipt.
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