Definition
Net Gaming Revenue (NGR) is Gross Gaming Revenue after a defined set of deductions. GGR captures what the operator holds from wagering — total bets minus winnings paid out. NGR removes the costs that sit between that gaming result and the operator's margin: bonus cost, payment processing, chargebacks, gaming taxes, platform and content fees, sometimes jackpot contributions.
The word defined carries the meaning. GGR is standardised enough for regulators to tax it and for operators to compare it. NGR is whatever the report, the platform contract or the affiliate agreement says it is. Two NGR figures are comparable only when both apply the same deductions to the same period in the same currency.
Formula
GGR = Total bets − Total winnings
NGR = GGR − Bonus cost − Payment costs − Chargebacks − Gaming tax − Platform and content fees (− any other deduction the definition names)
Bonus cost deserves its own line in the policy: some definitions deduct the bonus at grant, some at wagering, some only the converted (cashed-out) part. Payment costs may or may not include failed-transaction fees and FX. Each choice moves NGR without touching a single bet.
GGR vs NGR at a glance
| GGR | NGR | |
|---|---|---|
| What it measures | Gaming result before any cost | Gaming result after defined deductions |
| Who defines it | Regulators and market statistics; broadly standard | The operator, platform contract or affiliate agreement |
| Comparable across companies | Yes, within a product and market | Only with identical deduction policies |
| Typical use | Top-line reporting, gaming tax base, market share | Revenue share, affiliate commission, management P&L |
| Moves when | Stakes, RTP or hold change | Any of the above, or the bonus, payment, tax or fee lines change |
Where NGR is used
- Affiliate revenue share. Commission is paid as a percentage of NGR, not GGR, because the operator shares what it keeps. The contract's deduction list — plus its administration fee and negative-carryover rule — sets the effective rate as much as the headline percentage does.
- Platform and content fees. Turnkey and white-label agreements often price the platform as a share of NGR, with the same definitional questions: which bonuses, which payment costs, which taxes.
- Management reporting. NGR is the line the driver tree hangs from — see decomposing NGR into drivers for how to diagnose a decline in order.
Reporting discipline
- Publish the deduction list next to every NGR figure — one policy per report, per contract.
- Name the variants. Management NGR, contractual NGR and affiliate NGR are different metrics; label them as such instead of reconciling them silently.
- Reconcile to the ledger each period: GGR from the game and bet ledgers, deductions from the bonus, payment and tax ledgers, one currency and FX policy.
- Do not benchmark NGR/GGR ratios against other operators or public datasets without checking the deduction policy line by line.
Related metrics: Gross Gaming Revenue (GGR) · Hold percentage · Payment approval rate · Bonus economics.
Common questions
What does NGR stand for in iGaming?
NGR stands for Net Gaming Revenue. It is Gross Gaming Revenue (total bets minus winnings paid out) after the deductions a report or contract defines — usually bonus cost, payment processing fees, chargebacks, gaming taxes and platform or content fees. NGR is the figure that management reporting, affiliate deals and platform revenue-share agreements are most often based on.
What is the NGR formula?
NGR = GGR − deductions, where GGR = Total bets − Total winnings. The deduction list is the whole definition: a contract that deducts bonuses, PSP fees and gaming tax produces a different NGR from one that also deducts content royalties and chargebacks. Publish the list next to the number.
What is the difference between GGR and NGR?
GGR is the gaming result before any cost — what the operator holds from wagering. NGR is GGR after a defined set of costs that sit between the game and the operator's margin. GGR is standardised enough to compare across operators and regulators; NGR is contract-specific, so two NGR figures are only comparable when both parties apply the same deductions to the same period.
Why is affiliate revenue share calculated on NGR rather than GGR?
Because the operator shares what it actually keeps. An affiliate deal on GGR would pay commission on revenue that bonuses, payment costs and tax have already consumed. Revenue-share contracts therefore define an NGR — often with an administration fee and rules on negative carryover — and the affiliate is paid a percentage of that NGR. The deduction list decides the effective rate as much as the headline percentage does.
Is there a standard NGR definition?
No. Unlike GGR, which regulators define for tax and reporting, NGR is defined by the operator, the platform contract or the affiliate agreement. That is why management NGR and contractual NGR should be named separately, reconciled to the ledger, and never benchmarked against another company's NGR without checking the deductions line by line.