Negative Carry Over (NCO) is the rollover of a negative balance from one month to the next.
For example, an affiliate has a 50% Revenue Share. During the month, players generated $50,000 in deposits, but the Net Gaming Revenue (NGR) turned out to be -$20,000 — players won more than they lost, leaving the affiliate in a deficit. Naturally, there’s no payout for that month.
Next month, the same traffic generates $30,000 NGR. At first glance, the affiliate might expect 50% = $15,000, but NCO applies: the previous month’s debt is subtracted first:
Payout = 30,000 × 50% – 10,000 = 5,000
NCO applies only to Revenue Share and Hybrid payment models.
No Negative Carry Over (NNCO) is a condition where negative balances are not carried over to the next month. This means:
- Even if players “beat” the casino or sportsbook this month, it won’t reduce your payout next month.
- Within the reporting month, a negative NGR always results in a $0 payout for that period.
How Affiliate Networks Handle Negative Balances
Most affiliate programs do not carry over negative balances, which is beneficial in the long term: even if players win big, future earnings won’t be reduced by previous losses.
However, NCO can be risky in the short term, especially if players generate huge wins repeatedly. For example:
- Player deposits $100,000
- Wins $1,000,000, loses it, deposits again, wins another $1,000,000
With NCO enabled, the affiliate would have to gradually offset this debt with earnings from other players.