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Partners Agreement

THIS AGREEMENT (the "Agreement") is entered into by and between Premier Bingo TEAM (Premier Bingo) and the Affiliate partner.

A. Premier Bingo is in the business of producing, marketing and promoting on-line entertainment Services that are accessed through the use of a personal computer, modem and/or direct Internet access.

B. Affiliate partner desires to market and promote the above-mentioned Service. This Service will be advertised, marketed and promoted under the name "Premier Bingo".

C. Affiliate partner desires to obtain from Premier Bingo, and Premier Bingo agrees to grant Affiliate partner the non-exclusive right and license to advertise, market and promote the Service, in accordance with the following terms and conditions.


1. Grant of Promotion and Distribution License
1.1 Premier Bingo grants to Affiliate partner the non-exclusive, non-transferable right and license to advertise, market and promote the Service, in accordance with the terms and conditions hereof.

1.2 Premier Bingo grants to affiliate partner the non-exclusive, non-transferable right and license to distribute to Affiliate partner customers, in accordance with the terms and conditions herein, the specialized bingo "Software" (the "Software") which enables access to the Service. Affiliate partner shall not under any circumstances reverse engineer, disassemble, decompile, or otherwise attempt to render source code from the "Software", or to reproduce or distribute the "Software" in source code format. Affiliate partner acknowledges and agrees that the "Software" is the proprietary property of Premier Bingo, and that it embodies substantial creative rights, confidential and proprietary information, copyrights, trademarks and trade secrets, all of which shall remain the exclusive property of Premier Bingo and/or its licensors. Affiliate partner agrees to include such proprietary rights notices, markings or legends on any advertisements or promotional materials for the "Software" as Premier Bingo shall reasonably specify from time to time.

1.3 All other rights and licenses not expressly granted to Affiliate partner herein are reserved by Premier Bingo.

2. Obligations of Premier Bingo

2.1 Premier Bingo will provide access to:
(a) bingo style games,
(b) slots machines games
(c) Merchant accounts,
(d) credit card authorization,
(e) fraud control, for billing;
(f) financial management of receivables
including call reports and accounting services, all in accordance with standard practices and procedures.
The choice of content for the Service, and the choice of persons retained to deliver the Service's, shall be determined by Premier Bingo in its sole discretion.

2.2 Premier Bingo shall retain the right to provide the Service in what ever form Premier Bingo deems appropriate.

2.3 Premier Bingo shall retain the right to change any part of the Service at anytime, without notice to affiliate partner, in whatever manner Premier Bingo deems appropriate.

2.4 Premier Bingo shall retain the right to cancel any part of the Service at any time, without notice to affiliate partner, in whatever manner Premier Bingo deems appropriate.

2.5 Notwithstanding anything in this Agreement, Premier Bingo shall not be held responsible or liable for any loss of income or loss of ability to produce income, on the part of the Affiliate partner, arising from any inability of Premier Bingo to deliver the Services contemplated in this Agreement for any reason whatsoever, whether Premier Bingo is at fault or whether a third party is at fault.

3. Obligations of Affiliate partner
3.1 Affiliate partner shall use best commercially reasonable efforts to actively and effectively advertise, market and promote the Service as widely and aggressively as possible so as to maximize the financial benefit to Affiliate partner and to Premier Bingo. Affiliate partner shall only engage in advertising, marketing and promotional efforts which do not violate any law and which reflect positively upon the business reputation of Premier Bingo. In particular, Affiliate partner agrees to market the product in a manner that is consistent with the content and style of the Service. In connection therewith, Premier Bingo shall have the right to review and approve (approval shall not be unreasonably withheld) the manner and methods of advertising, marketing and promotion used by Affiliate partner in connection with the Service. Approval may be withheld if Premier Bingo determines, in its sole discretion, that any such activities would tend to reduce the value of, or would impair Premier Bingo's goodwill and business reputation, or would expose Premier Bingo to legal liability.

3.2 Notwithstanding any approval by Premier Bingo given in accordance with section 3.1 of this Agreement, Premier Bingo shall under no circumstances be held liable for, and Affiliate partner shall indemnify, defend and hold Premier Bingo harmless against, any and all claims asserted against Premier Bingo by reason of Affiliate partner's marketing and promotional efforts undertaken hereunder.

3.3 Affiliate partner shall bear all costs and expenses incurred in connection with the advertising, marketing and promotion of the Service, including but not limited to all costs relating to the marketing.

4. Compensation
4.1 As used herein, "Affiliate partner Percentage" shall mean the percentage paid to Affiliate partner of the actual net revenue received from a user (the "Customer") for approved use of the Service. The actual Affiliate partner Percentage shall be equal to 20% of the Net Monthly Revenue. "Net Monthly Revenue" shall mean the total amount paid for bingo cards and/or wagered in slot machines, less the total amount paid out as winnings in bingo and slot machines, and less the amount for all merchant banking fees. "Player Signup" shall mean a unique player signing up for an account and wagering an amount greater than US$20.

4.2 Premier Bingo shall pay Affiliate partner monthly, in accordance with this contract for the preceding calendar month. Payment for the preceding month shall be made prior to the 20th day of each month.

5. Term and Termination
5.1 This Agreement shall commence and be deemed effective on the date when accepted by an authorized representative of the Affiliate partner (the "Effective Date"). This Agreement shall be deemed to be accepted by the Affiliate partner when the Affiliate partner chooses "YES" to the "Premier Bingo WAGERING AND GAMING PARTNERS AGREEMENT" and hits the submit button on the Affiliate partner Sign-Up page. This Agreement is in effect for a period of one (1) year (the "Term") with additional one (1) year extensions at Affiliate partner's option. If Affiliate partner elects to exercise this option, the option as exercised must be addressed to Premier Bingo in writing, no later than forty five (45) days prior to the expiration of the Term. The expiration notifications should be sent in writing, at least thirty (30) days prior to the expiration of the term.

5.2 Upon termination of this Agreement, Affiliate partner shall immediately return to Premier Bingo any and all Premier Bingo materials which Premier Bingo has a proprietary right in that are in Affiliate partner's possession and/or in the possession of Affiliate partner's agents, servants and employees.

5.3 Customers using Premier Bingo's facilities and all information relating to these customers shall remain the property of Premier Bingo at all times during the operation of this contract and after termination.

6. Accounting Statements
6.1 All payments due to Affiliate partner by Premier Bingo shall be made on or before the twentieth (20) day of each month for the immediately preceding calendar month and shall be accompanied by a written statement which specifies the gross revenues received by Premier Bingo with respect to the Affiliate partner customers, the number of Affiliate partner Customers wagering and the calculation of the monies being paid to Affiliate partner. Additionally, Premier Bingo may adjust statements from time-to-time to reflect overpayments, consumer chargebacks and/or, credits or underpayments by Premier Bingo.

6.2 Premier Bingo shall hold back 50% of each month's payment due to Affiliate partner (the "Hold Back Amount"). The Hold Back Amount shall be retained for a period of 90 days. If the chargebacks pertaining to the sales made by Affiliate partner for any given month are less than 50% of the Affiliate partner Percentage, then Premier Bingo shall pay the difference to Affiliate partner with the next monthly installment after the 90 day hold back period. If the chargebacks pertaining to the sales made by Affiliate partner for any given month are greater than 50% of the gross sales on which commissions are paid to Affiliate partner, then Premier Bingo shall adjust the payment due to Affiliate partner in accordance with section 6.1 of this Agreement.

7. Audit Rights
Affiliate partner may designate a Chartered Accountant to examine the books and records of Premier Bingo with respect to this Agreement. Said examination shall be at Affiliate partner's sole cost and expense and may be conducted no more than once annually during normal business hours and no sooner than five (5) business days after Affiliate partner gives written notice of such audit to Premier Bingo. Accounting statements rendered by Premier Bingo shall be deemed conclusive if not challenged by Affiliate partner within thirty days after being rendered.

8. Exclusivity, Non-Competition and Ownership of Service Name
8.1 Affiliate partner agrees, understands and acknowledges that Premier Bingo may enter into Agreements of this type with third parties to promote the Service or a similar version thereof.

8.2 Affiliate partner has not paid consideration for the use of Premier Bingo's trademarks, logos, copyrights, trade names, the Service name referred to in par. B, or designations, and nothing contained in this agreement shall give Affiliate partner any right, title or interest in or to any of them. Affiliate partner acknowledges that Premier Bingo and Premier Bingo licensors own and retain all copyrights and other proprietary rights in all of the foregoing, as well as any Software supplied by Premier Bingo. Affiliate partner shall not at any time during or after this agreement, assert or claim any interest in or to, or do anything which may adversely affect the validity or enforceability of, any trademark, trade name, copyright, service mark or logo belonging or licensed to Premier Bingo (including any act or assistance to any act which may infringe or lead to the infringement of any copyright in the "Software"). Without limiting the generality of the foregoing, Affiliate partner shall not attempt to register, or assist any third party in attempting to register any trademark, trade name or other proprietary right with any governmental agency, federal, provincial, local or otherwise, or with any other entity or authority, without the express, unequivocal and unambiguous prior written consent of Premier Bingo. Affiliate partner shall not attach any additional trademarks, logos or trade designations to the "Software" and shall ensure that none of the trademarks (or any variation thereof) appears in any portion of Affiliate partner's name or any name under which Affiliate partner does business. Affiliate partner shall not alter, erase, deface or overprint any proprietary rights notice on anything provided by Premier Bingo.

9. Confidentiality and Non-Disclosure
9.1 Affiliate partner and Premier Bingo each agrees that during the course of this Agreement, each may have access to and become acquainted with confidential information of the other. Affiliate partner and Premier Bingo each specifically agrees that it shall not misuse, misappropriate or disclose any such confidential information, directly or indirectly, to any third party or use any such confidential information in any way, either during the Term of this Agreement or at any time thereafter. Affiliate partner and Premier Bingo each acknowledges and agrees that the sale or unauthorized use or disclosure of any such confidential information obtained by the other during the Term of this Agreement shall constitute unfair competition and shall cause the party owning the confidential information to suffer great and irreparable harm. Affiliate partner and Premier Bingo each further acknowledge and agree that, except as otherwise provided in this Agreement, all such confidential information is and will remain the sole and exclusive property of the disclosing party. The terms of this Section shall survive the expiration or termination of this Agreement.

9.2 For purposes of this section 9, "Confidential Information" means (a) discoveries, concepts and ideas, whether patentable or not; (b) business or technical information, including but not limited to product or Service plans, designs, costs, prices and names, finances, marketing plans, business opportunities, personnel, research, development, and know-how; (c) any information designated as "confidential", "proprietary", or "secret" or which, under the circumstances taken as a whole, would reasonably be deemed to be confidential, proprietary or secret.

9.3 The obligations of section 9.1 shall not apply to the extent that any Confidential Information (a) becomes generally available to the public through no fault of the party to whom it was disclosed; (b) is or has been disclosed to such party directly or indirectly by a person under no obligation of non-disclosure to the disclosing party; or (c) is required to be disclosed under any laws, rules, regulations or governmental orders provided, however, that the party to whom it was disclosed shall have the burden of proving any of the foregoing exceptions by conclusive relevant evidence.

9.4 Notwithstanding anything to the contrary contained herein, the parties agree that the financial terms and conditions of this Agreement are to remain strictly confidential, and that neither party will disclose such financial terms and conditions to any third party without the prior written consent of the other party. This section shall not apply to disclosures, which are required by law (such as Premier Bingo reporting requirements), by order of a court with competent jurisdiction, or to each party's respective attorneys, accountants, and business advisors under a similar duty of confidentiality.

10. Representations, Warranties and Indemnity
10.1 Affiliate partner warrants, represents and covenants to Premier Bingo that: (a) Affiliate partner has the full legal right, power and authority to enter into and perform this Agreement, and to grant to Premier Bingo the rights set forth in this Agreement; and (b) Affiliate partner will obtain all necessary rights, licenses, permissions, business permits, and will comply with all applicable laws, rules and regulations in this connection in offering the Service to end-users.

10.2 Affiliate partner agrees to indemnify and hold Premier Bingo harmless, and further agrees to defend Premier Bingo through the service of an attorney chosen and approved by Premier Bingo, from and against any and all claims, liabilities, causes of action, damages, judgments, costs and expenses (including reasonable attorney's fees) arising out of or in any way connected with any breach or alleged breach by Affiliate partner of any representation, warranty or agreement contained in this section 10, or elsewhere in this Agreement.

10.3 In no event shall Premier Bingo be liable to the Affiliate partner, Affiliate partner's customers or any other third party claim for any indirect, special, or consequential damages, including lost profits, whether based upon a claim or action of contract, warranty, negligence, or other tort or breach of any statutory duty, indemnity or contribution, or otherwise arising out of this agreement, or the use and promotion of the Service, and/or any other act or omission relating to the Service in any connection to the sale or promotion of the Service, even if, in any such case, Premier Bingo has been advised of the possibility of such damages.

11. No Representation or Guarantee Regarding Profits or Income
Affiliate partner agrees, understands and acknowledges that the Premier Bingo, it's parent company, it's sub entities, it's agents, it's officers, it's directors, it's shareholders, and/or accountants have made no representation of any nature whatsoever to Affiliate partner and/or "Affiliate partner's agents, servants and/or employees regarding profits, income, or money which Affiliate partner may obtain or generate from the Service and/or from entering into this "Agreement" and/or from marketing and/or promoting any version of this Service, and/or form any other matter relating to this "Agreement" and/or to the subject matter of this "Agreement". Any expression by Premier Bingo in this regard is an expression of opinion only and Affiliate partner agrees understands and acknowledges that they have not been induced to, and/or persuaded thereby to, enter into this "Agreement" and that Affiliate partner has entered in to the Agreement of their own free will and choice, without any force or duress, and only after thorough, complete, full, and thoughtful investigation and after obtaining independent advice and counsel from their accountant, their attorney, and their financial advisors.

12. Assignment
This Agreement and rights and duties hereunder may not be assigned or transferred, either in whole or in any part by Affiliate partner without the express prior written consent of Premier Bingo, which consent shall not be unreasonably withheld.

13. Binding Effect
This Agreement and the provisions hereof shall be binding upon and inure to the benefit of the subsidiaries, affiliates, officers, directors, employees, agents, families, heirs, beneficiaries, executors, administrators, personal representatives, successors-in-interest and assigns of the respective parties hereto, and any entity which acquires either of the respective parties hereto.

14. Severability
If it is determined by a court of competent jurisdiction that any provision contained in this Agreement is illegal or unenforceable; such determination shall solely affect such illegal or unenforceable provision and shall not affect the validity or enforceability of the remaining provisions of this Agreement.

15. Further Acts
Each party agrees to perform such further acts and to execute and deliver to the other party any and all further documents which are required to carry out the purpose and intent of this Agreement or any of the provisions contained herein.

16. Notices
Except as otherwise provided herein, all notices, payments, or any other communications provided for herein shall be in writing or emailed and shall be given by email or personal delivery, or by mail, certified or registered, postage prepaid, return receipt requested, sent to the other party to this Agreement to whom it is given at the address set forth below, or such other address as either party to this Agreement may direct by notice given in accordance with the provisions of this Section. All notices shall be deemed effective upon personal delivery, or seven (7) days following deposit in the mail, or three (3) days following delivery through electronic mail:

17. Dispute Resolution
17.1. Agreement to Submit to Binding Arbitration. Except as otherwise provided below, the parties agree to submit disputes between them relating to this Agreement and its formation, breach, performance, interpretation and application to binding arbitration as follows.

17.2. Notice. Each party will provide written notice to the other party of any dispute within thirty days of the date when the dispute first arises or occurs. If a party fails to provide such notice, recovery on the dispute will be barred.

17.3. Arbitration Rules. Arbitration will be conducted in UK, pursuant to the Arbitration legislation then in effect in UK. Except as otherwise agreed, the arbitration shall be conducted by a single arbitrator. The arbitration award will be final and binding and may be enforced in any court of competent jurisdiction.

17.4. Costs and Attorneys' Fees. Unless the arbitrator finds that exceptional circumstances require otherwise, the arbitrator will grant the prevailing party in arbitration its costs of arbitration and reasonable attorneys' fees as part of the arbitration award.

17.5. Exceptions. Neither party will be required to arbitrate any dispute relating to actual or threatened: (a) unauthorized disclosure of Confidential Information; or (b) violation of Premier Bingo's proprietary rights. Either party will be entitled to receive in any court of competent jurisdiction injunctive or other equitable relief, in addition to damages, including court costs and fees of attorneys and other professionals, to remedy any actual or threatened violation of its rights with respect to which arbitration is not required hereunder.

18. Relationship of the Parties
This Agreement does not create a partnership or joint venture between the parties hereto and neither party shall have the power or authority to obligate or bind the other in any manner whatsoever.

19. Entire Agreement
This Agreement supersedes all prior negotiations, understandings and agreements between the parties hereto concerning the subject matter hereof. This Agreement may not be changed nor modified, nor may any provision hereof be waived, except in a writing signed by the parties hereto.

20. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of UK.

21. Survival of Rights
Notwithstanding anything to the contrary contained in this Agreement, any obligations which remain executory after expiration of this Agreement shall remain in full force and effect until discharged by performance and such rights as pertain thereto shall remain in full force and effect until their expiration.

22. Headings
The headings used in connection with the paragraphs and subparagraphs of this Agreement are inserted only for purposes of reference. Such headings shall be not deemed to govern, limit, modify or in any other manner affect the scope, meaning or intent of the provisions of this Agreement, nor shall such headings otherwise be given any legal effect.