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In the world of online casinos and gambling, two important terms help us understand how much money is really being made: Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR). These are key to knowing how a casino is performing and whether it’s making real profit.
If you’re new to the iGaming industry or just curious about how it all works behind the scenes, this article will break it down in simple words for you.
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What is Gross Gaming Revenue (GGR)?
GGR is the total amount of money that players bet minus the amount they win back. It’s like the total income the casino gets from the games before paying for anything else.
Simple Formula:
GGR = Total Bets – Total Wins
This number shows how much money the casino made from games, before it pays for any bonuses, fees, or bills. Think of it like your full salary before any deductions.
Example:
If players bet $1,000,000 and win back $900,000, the GGR is $100,000.
What is Net Gaming Revenue (NGR)?
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NGR is the real money the casino keeps after it pays for all the extra costs things like:
- Bonuses to players
- Payment fees (like credit card charges)
- Affiliate payouts
- License fees
- Government taxes
Simple Formula:
NGR = GGR – Bonuses – Fees – Commissions – Licenses – Taxes
This number shows the actual profit the operator keeps after covering all costs. It’s like the money that lands in your bank account after tax and other deductions.
Example:
If the GGR is $100,000 and expenses total $40,000, the NGR is $60,000.
Key Differences Between GGR and NGR
| Feature | GGR | NGR |
| Measures | Total money before expenses | Real profit after all expenses |
| Use in Business | Good for seeing total income | Better for planning and budgeting |
| Helps With | Tracking game performance | Knowing business health and profits |
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