What is GGR (Gross Gaming Revenue)? Formula and Examples

How it works

The formula is simple: GGR = total stakes − total winnings paid. For a slot with a 96% return to player, every €100 staked produces on average €4 of GGR. For a sportsbook, GGR is the handle multiplied by the margin actually achieved after results settle, which swings far more than casino GGR from month to month.

GGR is usually reported per product (casino, live casino, sportsbook, poker), per market and per game provider, because each has its own tax rate and supplier share. Bonuses are not deducted from GGR in most definitions; they are deducted on the way to net gaming revenue (NGR). Jackpot contributions and progressive seeds are treated differently by different regulators and contracts, which is one reason supplier agreements define GGR explicitly.

Why it matters for operators and suppliers

Governments tax GGR: rates range from single digits to over 30% depending on the jurisdiction and product, and the tax base is the first line of any market-entry model. Game studios, aggregators and platform providers are almost always paid a percentage of the GGR their content or technology generates, so a studio's revenue is a direct function of the GGR its games produce on each operator.

For investors and analysts, GGR is the comparable metric across operators and markets. For operators, GGR per active player and GGR per product tell you where the business actually makes money.

Example

In one month an operator's casino takes €25 million in stakes and pays €24 million in winnings: casino GGR is €1 million. Its sportsbook takes €10 million in bets and pays €9.3 million: sportsbook GGR is €700,000. Total GGR is €1.7 million. If gaming tax is 20% of GGR and game suppliers take an average 12% of casino GGR, €340,000 goes to tax and €120,000 to studios before any other cost.

NGR (Net Gaming Revenue) — GGR after bonuses, taxes and fees.
Turnover / Handle — total stakes, the figure GGR is carved from.
RTP (Return to Player) — determines what share of stakes becomes GGR.
Hold Percentage — GGR expressed as a percentage of handle.
Aggregator — typically paid a share of GGR.

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Frequently asked questions

In gambling company accounts, GGR is usually reported as revenue, sometimes net of certain bonuses or VAT depending on accounting standards. It is revenue before operating costs, not profit.

Standard GGR does not deduct bonus costs; that happens at NGR. Some regulators define a taxable GGR that excludes bonus stakes, so the definition should always be checked per jurisdiction.

Because GGR is what the operator actually earns. Charging on turnover would make a low-margin, high-volume product unaffordable and would not track the value the supplier's content creates.