GGR vs NGR in iGaming: What You Need to Know

Gross Gaming Revenue (GGR)

Represents the total amount wagered by players minus the total amount won by them. It reflects the operator total earnings from player activities before any expenses are deducted. The formula for GGR is:

GGR = Total Bets – Total Wins

This metric is akin to “gross revenue” in traditional business terms, indicating the casino’s income from gaming activities before accounting for operational costs.

Net Gaming Revenue (NGR)

Provides a more accurate picture of a operator’s profitability by accounting for various operational expenses. NGR is calculated by subtracting costs such as bonuses, payment processing fees, affiliate commissions, licensing fees, and taxes from the GGR. The formula is:

NGR = GGR – Bonuses – Payment Processing Fees – Affiliate Commissions – Licensing Fees – Taxes

This metric reflects the actual earnings of the operator after all expenses have been deducted, offering a clearer view of the business’s profitability.

Key Differences Between GGR and NGR:

• Scope of Measurement: GGR measures total revenue from gaming activities before expenses, while NGR accounts for operational costs, providing insight into net profitability.
• Financial Analysis: GGR offers a broad view of revenue generation, useful for assessing overall performance. In contrast, NGR delivers a detailed understanding of profit margins after expenses.
• Strategic Planning: Operators use GGR to evaluate the effectiveness of gaming offerings, whereas NGR is crucial for financial planning and sustainability assessments.

In summary, both GGR and NGR are vital metrics in the iGaming industry. GGR provides an overview of total revenue generated from player wagers, while NGR offers a deeper understanding of actual profitability after accounting for all related expenses