The MDV Advantage: Why 0.1% of Handle is the Fairest Price for Risk Mitigation

We don't charge for GGR. We charge for the risk we manage. Here's why 0.1% of Monitored Dollar Volume (MDV) is your best insurance policy.

When evaluating responsible gambling solutions, pricing models matter. Most providers charge based on Gross Gaming Revenue (GGR), player counts, or flat fees. But these models don't align with the actual risk you're trying to mitigate.

Whistl's pricing model—0.1% of Monitored Dollar Volume (MDV)—is fundamentally different. It's designed to align our incentives with yours: we make money when we successfully manage risk, not when you generate revenue.

What is Monitored Dollar Volume (MDV)?

MDV is the total dollar volume of gambling activity we monitor across your platform. It includes:

• Deposits
• Bets placed
• Withdrawals
• All gambling transactions we track for risk assessment

MDV is the best proxy for risk exposure because:

• Volume = Risk: Higher gambling volume generally correlates with higher risk of harm
• Comprehensive: It captures all gambling activity, not just revenue
• Fair: Operators with more volume pay more, but only for the volume we actually monitor
• Aligned: Our fee scales with your risk exposure, not your profitability

Why Not GGR?

Many responsible gambling providers charge based on Gross Gaming Revenue (GGR). This creates misaligned incentives:

1. Revenue ≠ Risk: A player who deposits $10,000 and loses $5,000 generates $5,000 in GGR. But a player who deposits $10,000 and wins $5,000 generates $0 in GGR. The risk is the same, but the fee is different.

2. Punishes Efficiency: Operators with better margins (lower GGR relative to handle) pay less, even if they have the same risk exposure.

3. Misaligned Incentives: Providers make more money when you generate more revenue, not when you reduce risk.

4. Unfair to Operators: High-volume, low-margin operators pay disproportionately more than low-volume, high-margin operators.

GGR-based pricing doesn't reflect the actual risk we're managing. MDV does.

Why Not Per-Player Pricing?

Per-player pricing models also have problems:

1. Doesn't Scale with Risk: A player who gambles $100/month has the same fee as a player who gambles $10,000/month, even though the risk is vastly different.

2. Encourages Exclusion: Operators have an incentive to exclude players rather than manage them, since exclusion reduces fees.

3. Unfair to High-Volume Operators: Operators with fewer, higher-value players pay less than operators with many low-value players, even if total risk is the same.

4. Doesn't Reflect Value: The fee doesn't scale with the value we provide. Managing a high-risk player costs the same as managing a low-risk player.

Why MDV is the Right Metric

MDV aligns perfectly with risk management because:

1. Risk Scales with Volume: More gambling volume = more risk exposure. MDV captures this directly.

2. Fair Distribution: Operators pay in proportion to their risk exposure. High-volume operators pay more, but they also have more risk to manage.

3. Aligned Incentives: We make money when we monitor activity, not when you generate revenue. Our success is tied to risk management, not profitability.

4. Transparent: MDV is easy to calculate and verify. You know exactly what you're paying for.

5. Scalable: The model works for operators of all sizes, from small startups to enterprise platforms.

The 0.1% Fee: Why It's Negligible

At 0.1% of MDV, our fee is remarkably small. Here's why:

Example Calculation:

• Monthly MDV: $10,000,000
• Whistl Fee (0.1%): $10,000/month
• As % of GGR (assuming 5% margin): 2% of GGR
• As % of Revenue: < 0.1% of total revenue

For most operators, the fee represents less than 0.1% of total revenue. It's negligible compared to:

• Marketing costs (typically 20-30% of revenue)
• Payment processing (2-3% of revenue)
• Licensing fees (varies by jurisdiction)
• Regulatory compliance costs
• Potential fines ($6M+ per incident)

The fee is so small that it's essentially invisible in your P&L, but the value it provides is enormous.

Comparing to Your Current Compliance Spend

Most operators spend significantly more on compliance than they would on Whistl:

Current Compliance Costs:

• Responsible gambling staff: $100,000-$500,000/year
• Compliance software: $50,000-$200,000/year
• Audits and assessments: $25,000-$100,000/year
• Training and certification: $10,000-$50,000/year
• Legal and regulatory: $50,000-$200,000/year
• Total: $235,000-$1,050,000/year

Whistl Cost (for $100M annual MDV):

• 0.1% of MDV: $100,000/year
• Plus: Operational Efficiency savings
• Plus: Regulatory Fine Avoidance
• Plus: Preserved CLV

For most operators, Whistl costs less than their current compliance spend while providing significantly more value.

Operational Efficiency (OE) Savings

One of the immediate benefits of Whistl is Operational Efficiency (OE) savings:

1. Reduced Staff Costs: Automated risk assessment and blocking reduces the need for manual intervention, allowing you to reduce responsible gambling staff.

2. Reduced Software Costs: Whistl replaces multiple point solutions, reducing your software spend.

3. Reduced Audit Costs: Comprehensive audit trails and automated reporting reduce audit preparation time and costs.

4. Reduced Training Costs: Automated systems require less training than manual processes.

For many operators, OE savings alone offset the Whistl fee, making it effectively free.

The $8.1 Trillion TAM

Whistl operates in a massive Total Addressable Market (TAM): $8.1 trillion in global gambling handle. At 0.1% of MDV, this represents:

• Potential revenue: $8.1 billion annually
• Massive scale opportunity
• Network effects that benefit all operators
• Infrastructure that becomes more valuable as it grows

This TAM allows us to:

• Invest heavily in infrastructure and R&D
• Keep fees low (0.1% is sustainable at scale)
• Build network effects that benefit all participants
• Create a moat that's nearly impossible to replicate

The massive TAM isn't just about our revenue potential—it's about the value we can provide to operators at scale.

Why 0.1% is Sustainable

At 0.1% of MDV, we can:

• Cover infrastructure costs
• Invest in R&D and model improvement
• Provide comprehensive support
• Build network effects
• Maintain healthy margins
• Scale globally

This fee level is sustainable because:

• Volume: At scale, 0.1% of $8.1T is substantial
• Efficiency: Network effects reduce per-operator costs
• Value: The value we provide justifies the fee
• Competition: We can maintain this fee while remaining competitive

We're not trying to extract maximum value—we're trying to build sustainable infrastructure that benefits everyone.

ROI Calculation

Let's calculate the ROI of Whistl's 0.1% MDV fee:

Investment (Annual):

• $100M MDV × 0.1% = $100,000

Returns:

• Regulatory Fine Avoidance: $6M-$20M (one avoided incident)
• Operational Efficiency: $50,000-$200,000 (reduced compliance costs)
• Preserved CLV: $28,000+ per managed player
• License Protection: Priceless
• Brand Protection: Millions in preserved value

ROI: 6,000% - 20,000%+

Even in a year with no incidents, the OE savings and preserved CLV provide positive ROI. When you factor in avoided fines, the ROI is astronomical.

Fairness and Transparency

Our MDV-based pricing is fair and transparent because:

1. Easy to Calculate: You can calculate your fee yourself based on your MDV.

2. Easy to Verify: We provide detailed reporting on what we monitor, so you can verify the fee.

3. Scales with Risk: Operators with more risk pay more, but only in proportion to their risk exposure.

4. No Hidden Fees: The fee is straightforward—0.1% of MDV. No surprises, no add-ons.

5. Aligned Incentives: We make money when we monitor activity, not when you generate revenue. Our success is tied to risk management.

Conclusion: The Fairest Price

Whistl's 0.1% of MDV pricing model is the fairest approach to risk mitigation because:

• It aligns with actual risk exposure (MDV is the best proxy)
• It's negligible compared to revenue (less than 0.1%)
• It's often offset by Operational Efficiency savings
• It provides massive ROI through Regulatory Fine Avoidance and Preserved CLV
• It's transparent and easy to calculate
• It scales with the $8.1T TAM we're helping to secure

We don't charge for GGR because revenue isn't the risk we're managing. We charge for MDV because volume is. And at 0.1%, it's the best insurance policy you can buy.