Gross Gaming Revenue (GGR)
GGR represents the gross revenue of a gambling platform — the total amount of money lost by players, which the system earns. Bonuses, taxes, and other expenses are not included in this calculation.
Formula:
GGR = Total Bets – Total Wins
Example:
- Players place bets totaling $1,000,000
- Total winnings paid out: $100,000
- GGR = $1,000,000 – $100,000 = $900,000
GGR gives a quick view of the platform’s revenue scale. When GGR drops, platforms often run tournaments, prize draws, or jackpot promotions to boost deposits and player activity.
Net Gaming Revenue (NGR)
While GGR gives a first glance at revenue, NGR shows the platform’s actual profitability. It accounts for bonuses, taxes, and other expenses, reflecting the net earnings.
Formula:
NGR = Total Bets – Total Wins – Bonuses – Taxes
Example:
- Bets: $1,000,000
- Wins: $100,000
- Bonuses: $100,000
- Taxes: $50,000
- NGR = $750,000
NGR is used to analyze traffic quality: each traffic source can be assigned its own NGR metric. The higher the NGR, the more effective the traffic source. This helps platforms adjust partnership terms and optimize marketing strategies.