The short answer
GGR vs NGR: the difference and formulas
GGR (gross gaming revenue) commonly measures eligible wagers less the corresponding player winnings. NGR (net gaming revenue) starts from GGR and subtracts the deductions in a stated reporting policy or agreement. The difference is the cost scope, so the NGR label alone does not tell you which costs have been removed.
GGR = eligible stakes − corresponding player winnings
NGR = GGR − specified deductions
Possible deductions include bonus costs, gaming taxes, payment charges and commercial fees. They are not automatically included in every NGR definition. Write out the categories, their calculation bases and any adjustments before comparing two reports.
| Measure | What it answers | What it leaves to check |
|---|---|---|
| GGR | How much gaming value remains after the defined player winnings? | Which stakes, wins, bonus play and adjustments are included? |
| NGR | What remains after this report’s specified deductions? | Which costs are deducted, and which still sit outside the calculation? |
| Contribution | What remains after additional attributable costs within the chosen scope? | Which overheads and other business costs remain outside this result? |
Work through the numbers
A GGR and NGR calculation example
Assume one reporting month, one currency and a matched set of settled stakes and winnings. The amounts below show the calculation under a chosen policy.
The difference between GGR and NGR here is €25,000. A different policy could put provider fees inside NGR and call €29,000 NGR instead. Neither label is enough to compare the two views: the deductions must travel with the number.
For a simple 20% revenue-share agreement on this month’s NGR, the calculation would be €35,000 × 20% = €7,000. The same percentage on GGR would be €12,000. Actual agreements may add qualifying rules, adjustments or negative carryover; use their defined revenue base. The €29,000 contribution above is before any additional affiliate commission and other costs outside its scope.
| Line | Amount | Calculation rule |
|---|---|---|
| Eligible stakes | €1,000,000 | The settled stakes included in this view. |
| Corresponding player winnings | €940,000 | The winnings associated with those stakes. |
| GGR | €60,000 | €1,000,000 − €940,000. |
| Recognised bonus cost | €10,000 | Deducted once under the example policy. |
| Gaming tax | €12,000 | An assumed amount for the example, not a statutory rate. |
| Payment fees | €3,000 | Included in this example’s NGR definition. |
| NGR | €35,000 | €60,000 − €10,000 − €12,000 − €3,000. |
| Additional provider fees | €6,000 | Outside this NGR definition; deducted at the contribution stage. |
| Defined contribution | €29,000 | €35,000 − €6,000, before costs outside this scope. |
The regulatory definition
UK Gambling Commission: GGY uses A + B − C
The UK Gambling Commission calls its regulatory measure gross gambling yield (GGY). Its calculation is GGY = A + B − C: A covers stakes payable to the licensee, B other amounts accruing directly from licensed activity excluding VAT, and C amounts deducted for prizes or winnings in the reporting period.
Its guidance includes free bets and bonuses only where the customer can choose an unrestricted cash equivalent. Loyalty cashback and rakeback are outside A, B and C. These rules can differ from an internal management view of incentives.
Apply the Commission’s scope when preparing the relevant regulatory return. An internal GGR label does not establish equivalence to GGY, and the GGY guidance does not define a universal commercial NGR formula.
The measurement foundation
A metric includes more than its name
The definitions below are a starting framework for an online casino review. The operator’s accounting policy, product and contractual rules determine the final scope.
| Metric | Working meaning | Check the scope |
|---|---|---|
| Deposits | Money transferred into a player account. | Timing, settlement, reversals and currency. A deposit is not the same as gaming revenue. |
| Turnover / stakes | The amount wagered in the defined population and period. | Real-money and bonus play, voided bets, game scope and transaction status. |
| Player payouts / wins | Amounts paid or credited for winning outcomes under the report’s rules. | Match outcomes to the relevant stakes and treatment of jackpots, reversals and unsettled activity. |
| GGR | Gaming value commonly expressed as eligible stakes less associated player payouts. | Exact included records, timing and incentive treatment. Do not assume every report has the same definition. |
| NGR | A net gaming measure after the deductions specified by the operator or contract. | Identify every deduction. Incentives, taxes and fees may be treated differently across definitions. |
| Bonus cost | The incentive cost represented in the chosen economic view. | Issued, activated, consumed, expired and reversed value are different records. Define the cost event. |
| Contribution | The chosen revenue measure after additional attributable costs within a stated scope. | List costs already deducted and those still to subtract. Contribution is not automatically operating profit. |
| Active / returning players | Players meeting a defined activity rule in a defined window; return requires a specified prior event or period. | Qualifying event, identity scope, window, exclusions and cohort maturity. |
Different questions
Revenue and cash describe different layers
Deposits describe money entering player accounts. Stakes describe gaming activity. GGR summarises a defined relationship between stakes and payouts. A further net measure introduces deductions under a particular reporting policy. Each layer is useful, but they cannot be substituted for one another.
A larger deposit total may occur before the corresponding gaming activity. A higher GGR total may coexist with higher incentives or other costs. A useful management report keeps the layers visible so a movement can be investigated instead of being interpreted from its label alone.
For a finance review, reconcile the gaming ledger to the management report using the same event status, timezone and currency method. Keep a bridge from GGR through each NGR deduction to defined contribution. Record late settlements, reversals and definition changes as separate reconciling items.
An unexplained difference starts a data and accounting investigation. It does not by itself establish fraud, and a reconciled management report does not constitute an independent financial audit.
Avoid double counting
Give each cost one place
The same incentive or fee can appear in several operational reports. The management calculation needs a record of where it is deducted.
For an acquisition cohort, a commission may be charged on a different calendar from the observed value window. For a provider, the contractual fee base may differ from an internal NGR definition. Preserve both views and reconcile the relationship rather than forcing a label to mean the same thing everywhere.
| Step | Question | What to record |
|---|---|---|
| Starting measure | Which revenue figure does this comparison use? | Name, formula, source and version of its definition. |
| Included deductions | What has already been removed? | An explicit list of incentive, tax or fee categories. |
| Additional costs | Which costs are relevant and not already deducted? | Cost source, charging period, allocation rule and reconciliation status. |
| Final scope | What can this result be called? | A clear contribution definition and the costs outside its boundary. |
- Start with the measure
Record the formula, population and reporting period.
- List included deductions
Keep each incentive, fee and tax in one place.
- Define the contribution
Add only the relevant costs not already deducted.
Make the numbers comparable
Five checks before a comparison
Population
Confirm the brand, player group, games and exclusions. A player may be distinct within one brand but not within a wider portfolio.
Period and event time
Specify timezone, day boundary and whether a record follows its transaction, settlement or accounting date.
Currency
Use a stated conversion method and period. Keep original currency records available for reconciliation.
Cost and transaction scope
Align the treatment of bonus activity, voided or reversed transactions and deductions.
Completeness and maturity
Check delayed records and the time a cohort has had to generate an outcome. An incomplete window can look like a performance drop.
A reusable working document
Keep a register beside the KPI
A useful metric register can fit on one page per indicator. Record the business question, formula, qualifying event, population, source, time basis, currency rule, included costs, exclusions and owner of the definition. Add the reconciliation check and date of a substantive definition change.
Use the same register when building a dashboard, discussing an acquisition cohort or asking a question through an analytical interface. The multi-brand reporting scenario shows how to carry it into a reporting process.
Common questions
Clarify the comparison
What does NGR mean in a casino?
NGR means net gaming revenue. It is a gaming revenue measure after deductions defined by the operator’s policy or commercial agreement. Ask for the deduction schedule before using it to compare brands, player cohorts or affiliate deals.
How do you calculate NGR from GGR?
Subtract each deduction included in the chosen definition once: NGR = GGR − specified deductions. In the worked example, €60,000 GGR less €10,000 bonus cost, €12,000 gaming tax and €3,000 payment fees equals €35,000 NGR.
Is there one universal NGR formula?
The deductions depend on the operator, reporting policy or commercial agreement. Document the exact formula used in the decision rather than relying on the abbreviation.
Does GGR measure profit?
It does not represent all business costs. Taxes, content, payments, marketing, personnel and other costs may sit elsewhere in the accounts.
Can GGR or NGR be negative?
Yes. GGR can be negative when the included winnings exceed stakes in the reporting window. Deductions can also make NGR negative. The effect on affiliate commission and future periods depends on the agreement’s adjustment and carryover rules.
Are deposits the same as GGR?
No. Deposits fund player balances; GGR relates defined stakes to corresponding winnings. A player can deposit in one period and wager in another, or wager the same balance repeatedly.
Can bonus issuance be used as campaign cost?
It may be a useful operational measure, but it is different from consumed incentive value. Define which event represents cost in the economic comparison and reconcile the remaining balance.