Commercial
NGR (Net Gaming Revenue)
Net Gaming Revenue
Definition
GGR minus the net cost of bonuses and other defined adjustments. The closer-to-commercial measure of operator revenue.
Key takeaways
- Net gaming revenue (NGR) is gross gaming revenue after agreed deductions have been taken out.
- Unlike GGR, NGR has no single fixed definition - what gets deducted is set by the contract or the regulator.
- Bonuses are almost always deducted. Gaming duty, payment processing and platform fees sometimes are.
- Affiliate and revenue-share agreements are usually priced on NGR, which is why the deduction list matters more than the headline percentage.
Formula
NGR = GGR − agreed deductions (bonuses, and per contract: duty, payment fees, platform fees)
There is no universal NGR formula. Treat any NGR figure as meaningless until you know which deductions it includes. When comparing two operators, or two revenue-share offers, confirm the definition before comparing the numbers.
Worked example
The figures below are round and illustrative.
Starting from a GGR of 400,000:
| Deduction | Amount | Running total |
|---|---|---|
| GGR | - | 400,000 |
| Bonus costs | 120,000 | 280,000 |
| Payment processing | 12,000 | 268,000 |
| Platform fee | 40,000 | 228,000 |
Under a contract deducting only bonuses, NGR is 280,000. Under one deducting all three, it is 228,000 - a 19% difference on identical trading. A 25% revenue share pays 70,000 in the first case and 57,000 in the second.
Why it matters
NGR is the metric most operators emphasize in earnings releases as the headline revenue measure. The deduction from GGR for bonus costs is the largest adjustment in most operator definitions, capturing the real cost of promotional activity. Some operators also deduct gaming duty contributions, certain regulatory fees, and other defined items. The exact definition varies by operator, which is why the GGR-to-NGR bridge in earnings releases gets close scrutiny.
NGR is the basis for many internal performance management calculations. Marketing return-on-investment, segment profitability analysis, channel-level economics, and most management reporting use NGR rather than GGR. The metric is closer to the operator's actual commercial revenue (what flows to the P&L below the line). Cross-operator NGR comparisons require care because of definitional variations; trade publications and analyst reports typically harmonize where possible but caveat residual differences.
NGR (Net Gaming Revenue) vs Gross gaming revenue (GGR)
| NGR (Net Gaming Revenue) | Gross gaming revenue (GGR) |
|---|---|
| A net figure after contractual deductions. Closer to what a partner is actually paid on, but only comparable when the deduction list is known. | Stakes minus winnings, before any cost. Consistent between operators and jurisdictions, which is why it is the usual tax base. |
A deal quoted on GGR and one quoted on NGR are not comparable at the same percentage. Always ask which base, then which deductions.
The bottom line
NGR is the number commercial agreements are actually settled on, but it is defined by contract rather than convention. The deduction list is the substance; the percentage is not.
Frequently asked questions
How is NGR different from GGR?
GGR is gross gaming revenue (player stakes minus winnings). NGR deducts bonus costs and other defined adjustments. NGR is closer to the operator's commercial revenue; GGR is the regulatory and tax-base metric. Most operators report both with a clear reconciliation.
Why don't all operators define NGR the same way?
Bonus accounting conventions and treatment of specific cost categories vary. Some operators deduct gaming duty in NGR; others don't. Some treat free bet face value differently from bonus credit. The differences are usually small but can affect cross-operator comparisons. Earnings releases typically disclose the operator's specific NGR definition.