Online Casino Metrics: GGR and NGR

Online casinos have two key revenue metrics – GGR and NGR. It may seem logical that they rise and fall together, but they serve different purposes: GGR is the basis for taxation and a key benchmark for regulators and the market, while NGR shows how much revenue remains with the operator after major direct deductions.

What’s the Difference

🔵 GGR (Gross Gaming Revenue) – the total amount wagered by players minus winnings paid out over a given period

🔵 NGR (Net Gaming Revenue) – the same amount minus bonuses, taxes, and other direct costs

🔵 There is no single standard for which deductions are included in NGR – the calculation may differ between operators and jurisdictions

Where GGR Is Also Used

🔴 Regulators such as the UK Gambling Commission use licensees’ GGR to assess market size and, under relevant tax regimes, calculate tax obligations

🔴 Industry associations such as the European Gaming and Betting Association (EGBA) also measure the size of the sector based on GGR rather than NGR

🔴 NGR is generally not included in this type of market reporting – it is mainly used internally by operators to evaluate business economics

How Bonuses Create a Gap Between GGR and NGR

🔵 Operators increase bonus spending to attract new players and drive betting volume – this can help increase GGR

🔵 However, the tax base remains linked to GGR: bonuses do not reduce it in the same way they reduce NGR

🔵 Example: with $14 million in GGR, player bonuses amount to $2 million and tax is $1.4 million, leaving $10.6 million in NGR

🔵 If the operator doubles bonus spending while GGR remains unchanged, the tax stays the same, while NGR decreases by another $2 million

Conclusion

The same GGR does not mean the same business economics. One operator may spend more on bonuses, generate the same GGR, and pay the same amount of tax – but end up with a lower NGR.

The first metric shows the gaming result used for tax and industry calculations, while the second shows how much remains after the main direct deductions.