NGR (Net Gaming Revenue)
NGR (Net Gaming Revenue)
Net Gaming Revenue (NGR) is the "clean" revenue an online casino generates after deducting all direct gaming-related expenses. Unlike Gross Gaming Revenue (GGR), which represents the total amount wagered minus player winnings, NGR provides a more accurate picture of a casino's actual earnings by factoring in additional operational costs.
The Calculation
The calculation for NGR typically subtracts various costs directly associated with the gaming activity from the Gross Gaming Revenue:
- GGR (Gross Gaming Revenue): The total revenue from gaming, calculated as bets minus winnings. It's the headline figure before significant deductions.
- Bonus Costs: Expenses related to player bonuses and promotions.
- Taxes: Gaming-specific taxes and duties paid to regulatory bodies.
- Commissions: Fees paid to affiliate partners for player referrals.
- Payment Fees: Costs incurred for processing deposits and withdrawals.
Why NGR Matters for Casino Profit & Business Metrics
NGR is a critical key performance indicator (KPI) that offers deep insights into a casino's financial health and operational efficiency. While a high GGR indicates a popular gaming offering, NGR reveals the true casino profit margin after the cost of doing business.
For investors, affiliates, and casino operators, NGR provides transparency into how effectively a gaming platform manages its expenses. A casino with substantial GGR but consistently low NGR may indicate overspending on player bonuses, high taxation, or inefficient payment processing, directly impacting overall business metrics and long-term sustainability. Monitoring NGR helps stakeholders assess the profitability of a casino's operations and make informed strategic decisions regarding marketing spend, bonus structures, and cost management.
Related Terms
- LTV Lifetime Value
Total expected revenue from a player over their entire relationship.
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- Volatility (Variance)
A measure of the risk level associated with a specific game, defining how often and how big you can expect to win.
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The computational algorithm that ensures every spin, deal, or dice roll is completely random and independent.
- RTP (Return to Player)
The theoretical percentage of wagered money that a specific game will pay back to players over time.