Knowledge · Metrics
What is NGR (Net Gaming Revenue)? Formula, deductions and why it matters
NGR — Net Gaming Revenue — is GGR after the real-world costs of running an iGaming business are stripped out. It is the number your revenue-share contract is paid on and the number your CFO actually cares about.
Updated January 2025 · AS Tech iGaming editorial
Definition
NGR (Net Gaming Revenue) is Gross Gaming Revenue minus the direct costs attributable to delivering that gaming activity: bonuses, jackpot contributions, gaming taxes, payment processing fees and other agreed deductions.
Formula
NGR = GGR − Bonuses − Jackpot Contributions − Gaming Tax − Payment Fees − Chargebacks
Worked example
GGR is $50,000. Bonuses cost $8,000, jackpot contributions $2,000, 15% gaming tax = $7,500, payment processing 2% of $1,000,000 deposits = $20,000. NGR = $50,000 − $8,000 − $2,000 − $7,500 − $20,000 = $12,500.
Why NGR matters more than GGR
- Revenue-share contracts (white-label, aggregator) are paid on NGR.
- NGR is what funds marketing, salaries and profit.
- NGR / deposits is the cleanest measure of monetisation efficiency.
- Aggressive bonusing can collapse NGR even when GGR looks healthy.
Frequently asked questions
What does NGR stand for?+
NGR stands for Net Gaming Revenue — GGR minus bonus cost, jackpot contributions, payment processing fees, gaming taxes and other agreed deductions.
What is the NGR formula?+
NGR = GGR − Bonuses − Jackpot Contributions − Gaming Tax − Payment Fees − Chargebacks − Other Agreed Deductions.
Why is NGR more important than GGR for operators?+
Because NGR is what the operator actually keeps. Revenue-share contracts and P&L are calculated on NGR, not GGR.
Are payment fees always deducted from NGR?+
Standard B2B contracts deduct them; some smaller deals leave payment costs with the operator. Always check your provider contract.
Does NGR include free spins?+
Stakes and wins from free spins flow through GGR; the cost (cash value of the spins) is deducted at the NGR stage.