Definitions
Gross Gaming Revenue (GGR) = Total player bets − Total player winnings
Net Gaming Revenue (NGR) = GGR − the deductions defined by the operator or commercial contract
GGR is the gaming result before downstream costs. NGR is not fully standardized: bonuses, payment costs, chargebacks, taxes, provider fees and jackpot contributions may be treated differently. Publish the deduction policy whenever NGR is used.
GGR by product type
| Evidence | Measured result | How to use it |
|---|---|---|
| Danish betting market, 2022 | 88.48% RTP / 11.52% GGR | Official market example, not a universal sportsbook benchmark |
| Danish online casino market, 2022 | 95.78% RTP / 4.22% GGR | Official aggregate example; product and operator mix matter |
| Prediction-market models | Service fee, broker commission or venue fee | Use the signed contract and its exact volume/revenue denominator |
Source: Danish Gambling Authority market statistics.
NGR-to-GGR reconciliation
- List every deduction: bonus cost, payment cost, chargebacks, tax, provider fee and jackpot contribution.
- Keep one period and currency: state FX policy and treatment of late settlement or reversals.
- Reconcile to ledger: management NGR and contractual NGR may be different metrics and should be named separately.
Do not publish a “healthy” NGR/GGR ratio without a comparable dataset and identical deduction policy.
GGR in regulatory and tax context
Tax bases are jurisdiction- and product-specific. In the UK, HMRC defines Remote Gaming Duty as 40% of remote-gaming profits for accounting periods beginning on or after 1 April 2026. In Germany, the statutory 5.3% rate for online poker and virtual slots applies to the base defined in the RennwLottG, not simply to GGR. Curaçao's LOK licensing fees and applicable taxes should be taken from current CGA and tax guidance rather than summarized as a legacy “flat fee.”
Related metrics: Click-to-Registration rate — primary acquisition funnel metric. Platform performance benchmarks — real operator ARPU and LTV data.
Common questions
What is Gross Gaming Revenue (GGR)?
Gross Gaming Revenue (GGR) = Total player bets − Total player winnings. It represents how much the casino or sportsbook 'holds' from player wagering activity, before any costs. GGR is the top-line revenue metric — what the operator generates before paying costs. Example: if players bet $1,000,000 and win $950,000, GGR = $50,000. The ratio of GGR to total bets is the 'hold percentage' or theoretical margin.
What is Net Gaming Revenue (NGR)?
NGR is an operator or contract-defined metric derived from GGR after specified deductions such as bonuses, payment costs, chargebacks, taxes or provider fees. There is no single universal NGR formula, so every report and commercial agreement should list the included deductions explicitly.
What is the difference between GGR and NGR in practice?
GGR measures the gaming result before downstream costs. NGR applies a defined set of deductions for management reporting, affiliate or platform contracts, or investor reporting. Because NGR definitions vary, ratios cannot be compared safely unless both parties use the same deduction policy and period.
What GGR can operators expect from prediction markets?
There is no universal prediction-market GGR rate. Technology vendors, brokers and contract markets earn different service fees or commissions, while a gaming operator may model cross-sell separately. Define the revenue stream and denominator, then use venue contracts and first-party cohorts rather than an industry-wide percentage.