Understanding GGR in the Online Gambling Industry

Running a gambling platform means keeping a close eye on numbers — Gross Gaming Revenue (GGR) is one of the crucial ones. This figure shows how much money players have spent on bets before things like bonuses or fees are taken out. It plays a big role in everything from licence applications to tax reports and helps operators track real growth over time. When paired with Net Gaming Revenue (NGR) and other key performance indicators (KPIs), it also offers a clearer picture of overall performance. This guide breaks down how GGR works and where it fits in the bigger picture.

The Definition of GGR

Gross Gaming Revenue (GGR) is a key performance indicator in any casino or sportsbook business. Its meaning lies in the total amount of wagered money collected from players, minus the value of all payouts. In simpler terms, it’s the difference between how much users bet and how much they win back — before any deductions like taxes, bonuses, or operating expenses.

Also known as gross game win or gross gaming yield, GGR is commonly used in financial planning, tax filings, and licensing applications. It helps operators assess profitability, measure platform success, and track trends over time. Whether you are analysing GGR performance in a casino or reviewing sportsbook data, this figure offers a clear picture of core revenue.

Unlike net metrics, GGR provides a raw look at how much value is generated through gameplay activity, making it one of the most widely monitored metrics in the online gambling industry.

Breaking Down the Formula for Gross Gaming Revenue

To calculate GGR, operators use a simple equation: GGR = Total amount wagered by players – Total winning payouts made by the operator. 

Despite its simplicity, each part of this formula plays a key role in determining accurate financial results.

The amount wagered includes all bets placed by users during a specific reporting period (whether in slots, table games, or sports bets). Winning payouts are the total returns paid out to players for winning outcomes. The difference reflects the platform’s gross game win, summarising revenue before expenses.

GGR can be calculated over various periods (daily, weekly, monthly, or quarterly), depending on internal reporting needs or external obligations. Many online gambling businesses track GGR alongside gaming sales (e.g. total bet amounts across slots, table games, or sports wagers) to understand how products perform across different timeframes.

Most importantly, knowing the correct GGR figure is essential for reporting the correct tax amount and helps operators ensure compliance with the law. Misreporting can lead to legal trouble or financial penalties.

What You Should Know about GGRM

The Gross Gaming Revenue (GGR) margin is a vital indicator of how efficiently a gambling platform turns player activity into revenue. It shows what percentage of the total amount wagered remains as gross income after all winning payouts have been made. This is calculated before any costs like bonuses, licensing fees, or taxes are deducted.

To calculate it, operators use a simple formula:

GGR Margin = GGR / Total Amount Gambled

This figure helps assess overall performance by comparing how much revenue was retained relative to the volume of gameplay. A higher margin suggests stronger monetisation, while a lower margin may signal the need to review payout ratios or bonus spend.

Here’s a quick GGR margin example:

Let’s say players wager €5,000,000 over a month, and the platform pays out €4,600,000 in winnings.

• The GGR is €400,000 (5,000,000 – 4,600,000).
• Now divide €400,000 by the total amount gambled (€5,000,000):
• GGR Margin = €400,000 ÷ €5,000,000 = 0.08, or 8%

This 8% margin reflects the share of player spend that remains with the operator before expenses — a useful benchmark when comparing different products, game types, or operational strategies.

Regularly calculating the GGR margin helps operators spot trends, adjust payout strategies, and maintain a healthy financial balance across the business.

Explaining Net Gaming Revenue (NGR)

While GGR shows gross income from player bets, Net Gaming Revenue (NGR) goes a step further by accounting for core business expenses. NGR reflects what is actually left after payouts and deductions — a more accurate figure when assessing profitability.

These deductions include things like bonus offers, affiliate marketing payouts, and payment processing charges. For example, affiliates earn commissions for referring players, which is a major ongoing cost for many platforms. Meanwhile, promotional campaigns aimed at increasing brand awareness also fall under operational expenses, especially when targeting competitive markets.

Regulatory expenses also play a role. Platforms must budget for licensing costs, ongoing audits, and taxation. On top of that, reliable infrastructure and customer support are needed to release winnings to players quickly and keep services stable.

It is also worth noting that when reviewing business health, operators often track the NGR-to-deposit ratio. This shows what share of player deposits converts into real revenue after costs. The formula is:

NGR-to-Deposit Ratio = Net Gaming Revenue ÷ Total Player Deposits

A healthy ratio is between 50% and 65% , depending on the market and vertical. Anything significantly lower (less than 40%) may signal bonus abuse, low player retention, or operational inefficiencies.

Unlike GGR, which offers a surface-level view, NGR provides real insight into how well the business model is functioning. It is also used to determine revenue shares for white-label agreements, affiliate deals, and internal performance tracking.

Staying on top of NGR is essential not just for financial planning, but also for long-term growth. It is the number that ultimately shows how sustainable your platform is — and whether you are scaling with a profit or just pushing volume at a loss.

What Goes Into Calculating NGR

The formula for Net Gaming Revenue (NGR) looks like this:

NGR = GGR – Expenses

These deductions cover different types of expenses, including taxes, affiliate commissions, player bonuses, advertising costs, licensing fees, payment method charges, and software provider payouts. Each of these deductions reflects real operational spending required to keep a platform running and compliant.

Calculating NGR gives a focused view of operational efficiency. By subtracting business-critical costs from GGR, operators can measure how effectively their platform converts gross income into real returns. It also helps teams break down which expense categories have the biggest impact on profit — whether it is heavy bonus spend, rising affiliate commissions, or high processing fees.

Tracking Profitability with NGR Margin

The NGR margin is calculated using the following formula:

NGR Margin = NGR ÷ Gross Gaming Revenue

This percentage highlights how effectively your platform turns gross income into real returns. For instance, if your GGR is €500,000 and your NGR (after all costs like bonuses, licensing fees, affiliate payouts, and taxes) sits at €225,000, then:

• NGR Margin = 225,000 ÷ 500,000 = 0.45, or 45%

That means 45% of gross revenue is available for reinvestment, development, or profit. A strong margin shows healthy monetisation and cost control, while a low percentage may point to excessive bonus offers or high operational spend. Tracking the Net Gaming Revenue margin regularly helps you understand what is really driving profitability and spot areas for improvement.

GGR vs. NGR: Key Differences

Both Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR) are vital KPIs in the iGaming market, but they capture different stages of revenue flow. GGR measures raw intake before deductions, while NGR reflects the actual profit after costs. The relationship between GGR and NGR helps operators understand how much value is retained after operational expenses. Understanding this GGR/NGR balance is key for performance tracking, cost analysis, and supporting smarter planning.