We're a long time poker affiliate since 2004. We've been affiliated with Cake Poker since May 2008. In September 2009, we acquired 19 players. According to the online reporting, all of these players made a sufficient deposit of $50 to $600, played well over a thousand raked hands each, and generated well over $100 in net rake. As far as we were concerned, they were all legitimate players.
We ended up spending over $1700 in acquiring these players. We were on a hybrid plan with them, and they ended up paying us about $2100 in commissions for the month, in early October. Nothing out of the ordinary.
In mid October, about a month later, Cake came back to us saying that these players were fraudulent players and they wanted their money back. Even though I did not think that it was our fault for not detecting these fraudulent players sooner, I asked them if we could come to compromise because I didn't think that we should be held entirely responsible for the fraudulent players. We were defrauded as well.
Then, they came back to us and said that they had already paid "over $1,700 in chargebacks" and that was more than enough of a compromise, basically giving us no real alternative. They did give us an option to repay the money with future earnings.
I didn't feel as though this was a good compromise since we would still be short about $2000 in the end. At that time, I stopped promoting Cake Poker until we were able to get the situation resolved.
Fast forward to last week. They completely locked our affiliate account (we had 56 players on the hybrid/revenue share plan still generating revenues), and we had an outstanding balance of $300 in our player account. Then, they went to the other Cake Network sites that we're affiliated with and asked them to terminate our relationship with them.
I'm not sure what else to do, so I'm asking other affiliates what they think of this situation? My problem is this...let's say if 2 months down the road, they come back to us again and wanted us to repay them for 20 fraudulent players from last year. Where does it stop? As an affiliate, we can only do so much to prevent fraudulent players, but ultimately it is the site's responsibility to detect these fraudulent players within a meaningful amount of time. I can't imagine if this kind of thing happened to a rakeback affiliate, working on slim margins.
Please share your thoughts. Ultimately, I would like to open a dialogue with Cake Poker affiliates, but they are not responding to my inquiries. I even gave them a deadline to respond by Wednesday. Now they are closing all of my players accounts, taking all of the money in them, and contacting all of the other Cake affiliate networks telling them to end our affiliation with them. I don't think that this is right.












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