GGR and NGR in Gambling: Increase Web Casino Profits

Online casino Guide
Updated 07 august 2024

Gambling is a billion-dollar business, with casinos being one of the largest investors in this lucrative sphere. Gaming companies are always looking for ways to measure their income and monitor financial success.

GGR & NGR in gambling: general info

The commercial side of casinos is as important as entertainment content. The definitions like NGR and GGR are widely used in the iGaming sphere to describe profits. These financial notions are crucial for operators.

What is casino NGR, as well as GGR? We will explain the definitions and present ways of their calculation. Online Casino Market specialists supply operators with iGaming and management software and other elements of the entertainment business.

Casino GGR: Basic Information

This is a crucial metric in the amusement industry because it is utilised to track financial prosperity and deduce profitability.

What is casino GGR? The abbreviation stands for Gross Gaming Revenue — the total value that the firm earns from gambling operations via:

Here is a list of main characteristics:

  1. GGR meaning is calculated as the difference between deposits of punters and winning payouts. For instance, if a casino accepted $100,000 in bets and returned $90,000 of earnings, the GGR would be $10,000.
  2. Gross Gaming Revenue demonstrates how much the operator should pay in taxes. Many governments charge wagering sites based on their GGR. The more money the enterprise earns, the higher the rate to pay.
  3. The indicator also plays a significant role in determining a casino's stock price. Analysts use the term to evaluate the commercial performance of a gaming enterprise and make investment decisions.
  4. GGR meaning in casino venues does not take into account costs related to running a firm such as employee salaries, rent, or utilities. This is strictly a measure of how much money a gaming corporation earns from its wagering activities.

Several factors impact a casino’s GGR. These are:

  • types of entertainment offered;
  • the payout rates for each game;
  • the number of punters;
  • the sum of money the players wager;
  • generous bonuses and promotions.

NGR in Casinos: Key Notions

The definition means Net Gaming Revenue — it measures the financial prosperity of an entrepreneur. It means funds a firm earns from its gambling operations after deducting all expenses.

For the NGR casino calculation, you take the GGR and subtract any spending concerning running the business, such as:

  • employee salaries;
  • rent;
  • utilities;
  • taxes;
  • operating expenditures;
  • promotional costs, etc.

For example, if a company had a GGR of $100,000 and expenses of $80,000, the NGR meaning would be $20,000.

Here are some advantages of the measurement:

Profitability

Net Gaming Revenue is a more accurate metric of profitability than GGR. By taking into account all spending, casino NGR provides a clearer picture of how much money the operator is earning from his gambling activities

Operational efficiency

The figure allows for tracking profitability over time and making deliberate decisions based on this information. For example, adjusting the marketing strategy or offering more attractive promotions for the target audience

Affiliate commission

NGR can determine the number of fees that associates receive for advertising web casinos. This means that the more net dividends the gaming site generates, the more money affiliates can earn

The Main Things about Casino GGR and NGR

Casino NGR and GGR: key notions

These are vital financial terms in the wagering industry. The first one measures the amount of money a casino earns from its gaming activities. Meanwhile, NGR provides a more accurate scale of profitability and success with all expenses included.

To earn more in wagering, it is advisable to collaborate with competent financial specialists. The Online Casino Market aggregator can help you develop a business strategy and launch an iGaming project of any kind.

What is GGR casino statistics? To find out more and learn some aspects of increasing the project profitability, apply to us.

From our firm, you can also order:

  • an online casino script;
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We can start working on your project at any stage of its realisation and ensure technical, legal and marketing support.

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Karen Fill

Author

Karen Fill

Gambling business expert at Online Casino Market

Updated 07 august 2024