Definitions
Gross Gaming Revenue (GGR) = Total player bets − Total player winnings
Net Gaming Revenue (NGR) = GGR − Bonuses and promotions − Payment costs − Chargebacks
GGR is the top-line metric — what the operator generates from wagering activity before costs. NGR is what the operator retains after direct player costs (bonus liability and payment fees). The gap between GGR and NGR is primarily driven by bonus intensity.
GGR by product type
| Product | Typical GGR margin | Volatility |
|---|---|---|
| Slots (casino) | 3–5% of total bets (96–97% RTP) | Low (high volume smooths variance) |
| Live casino | 0.5–3% (97–99.5% RTP) | Medium |
| Sportsbook | 5–8% of turnover | High (results-dependent) |
| Prediction markets | 1–5% platform fee on volume | Medium (fee-based, not hold-based) |
NGR-to-GGR ratio benchmarks
- Conservative operator (low bonuses): NGR = 85–92% of GGR
- Typical acquisition-focused operator: NGR = 70–82% of GGR
- Aggressive bonus operator: NGR = 55–70% of GGR
High bonus intensity lowers NGR/GGR but can improve LTV if it attracts high-value players. The trade-off must be modelled per traffic source and player cohort — not all bonuses have the same ROI.
GGR in regulatory and tax context
Most iGaming tax regimes use GGR as the tax base. UK: 21% GGR for remote operators. Germany: 5.3% GGR. Denmark: 28% GGR. Curaçao: low flat fee (not GGR-based). When evaluating jurisdiction entry, model the effective tax rate as a % of NGR (since NGR is what drives operator economics).
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)?
Net Gaming Revenue (NGR) = GGR − Bonuses and promotions − Payment processing costs − Chargebacks. NGR is GGR after direct player costs. It is a more accurate picture of revenue that the operator actually retains before operational costs (technology, staff, marketing). NGR is typically 70–90% of GGR depending on bonus intensity and payment mix. High bonus operators (aggressive welcome offers) have lower NGR-to-GGR ratios.
What is the difference between GGR and NGR in practice?
GGR is useful for: measuring gaming performance, calculating tax (many jurisdictions tax GGR), comparing theoretical vs actual hold. NGR is useful for: operator P&L, affiliate commissions (affiliates are typically paid on NGR), platform rev-share calculations, and investor reporting. The gap between GGR and NGR is driven primarily by bonus costs — aggressive operators may have NGR/GGR ratios of 60-70%; conservative operators may be at 85-90%.
What GGR can operators expect from prediction markets?
Prediction markets generate 1–5% of trading volume in platform fees — thinner than sportsbook hold (3–12%) or casino margin (25–40%). The business case for prediction markets is through casino cross-sell: in Turbo Stars partner data (Curaçao, Q2 2026), 41% of prediction-market players placed a casino bet in week one, generating 25–40% casino margin on that cross-sell cohort. Combined GGR per prediction-market player (including cross-sell) is competitive with sportsbook-only operators.