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iGaming  GGR to NGR Math and Calculation explained 

Learn how to calculate you online casino financial KPI's

Gross gaming income is the sum of all gaming revenues.
A succinct summary: Gross gaming revenue (GGR) is a significant indicator that gambling and betting organizations use to measure their success. It is equal to the difference between the amount staked and the amount gained in the wager. The gross gaming revenue margin (GGR margin) is a percentage of total wagering revenue that quantifies gross gaming revenue.

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Learn how to calculate Online CAsino GGR and NGR 

Igaming GGR and NGR Formula

This week, we'll look at two important money-related key performance indicators (KPIs) that speak to the profitability of online casinos: Gross Gaming Revenue (GGR) and Net Gaming Revenue (NETGR) (NGR).

The distinction between these key performance indicators (KPIs) and how to calculate them are explained below:

Generally speaking, gross gaming revenue (GGR) is a financial indicator that represents the amount of money earned by the casino as a consequence of players' activity, but before deducting extra casino expenditures.
 
This formula is straightforward:

In general, GGR equals A minus B.
It is a financial metric that indicates the percentage of basic earnings earned by a casino at the conclusion of a certain calendar month.

A formula for defining it is as follows:


Number of letters in the alphabet (NGR): A, B, C, and D
 
Legend:
 
A represents the total amount of all bets placed by players; B represents the total amount of all bets placed by players; C represents the total amount of all bets placed by players; D represents the total amount of all bets placed by players; and E represents the total amount of all bets placed by players.
In this case, B represents the total of all payments made to participants.
In this case, C represents the total of all bonuses obtained by participants.
D - the sum of all taxes owed.
 
Bonus payments and taxes are not included in gross gross revenue. This indicator is thus often used in the computation of tax deductions. Taxes are typically calculated as a percentage of gross receipts revenue (GGR) in most jurisdictions.
 
The net gaming revenue (NGR) of a gambling institution is calculated by subtracting all payouts to players and tax deductions from total revenue while excluding operational expenditures from that total income. Business profitability, dividend payments, and other financial data are often analyzed using this tool.
 
When it comes to the definition of NGR, however, there is no widely agreed methodology. Because this indicator is used to measure corporate profitability but does not have any links to mandated payments, it is considered to be a red herring. Example: When calculating Net Gambling Revenue (NGR), expenditures like as operations, marketing, and other costs may or may not be removed from the total number of bets. Because of this, it is critical to pick which formula to use during the course of company planning.

Gross gaming income is the sum of all gaming revenues.
Gambling and betting organizations employ gross gaming revenue (GGR), also known as game yield, as a significant indicator in their operations. It represents the difference between the amount of money that participants gamble and the amount of money that they win in a game of chance. It's vital to remember that gross gaming income is the same as "sales revenue."

 
 

iGaming and CAsino industry glossary 2022

 

The casino's transaction management system is called TMS.

 

Bet

Any kind of wager or real-money wagering is permitted.

 

Limits on wagering

The bare minimum and maximum bets that a player may place at any given moment.

 

Function as a bonus

Slot games are often equipped with some kind of bonus function or feature. Different types of bonus features may include scatters, wilds, and other similar features, as well as bonus courses where the odds of winning are increased.

much better than in the original game

 

Round two (bonus)

During a bonus round in a video slot game, the player progresses from the regular game to a bonus course that includes free spins, multipliers, and other features that frequently boost the player's chances of winning larger amounts of money.

 

Games with a specific brand name

NetEnt licenses material from third parties in order to create casino games, for which a royalty or licensing fee is paid by the third party to NetEnt.

 

C

Casino games are a kind of gambling that takes place at casinos.

Slots and table games are included in this category, which is referred to as the "overarching word."

 

Catalogue of online casino games

NetEnt's games that are accessible in a certain country or regulated market are included in a catalogue or on a list.

 

The casino's lobby

Within the licensee's gaming website, a page displaying the casino games that are currently accessible on the operator's website is shown.

 

CasinoModule™

NetEnt's casino system, which contains a collection of games built on a technological platform, is known by the brand name "NetEnt."

 

The outcome of the casino

The net result of a casino is computed as follows: player bets minus player winnings minus player compensation minus regulated market gaming tax minus regulated market gaming tax

 

Chips

In card games such as roulette, disks are used to designate values in lieu of actual or play money, providing a visual depiction of a wager on the table.

 

Commencement of commercial operations

It is the day on which NetEnt's games and gaming system are commercially launched at a customer's site, i.e. when the games are made accessible to players for real money play on the site of a gaming operator.

 

Credits

In slot machines, credits are utilized in place of actual wagers to represent winnings. Units of wagering are also known as betting units.

 

Croupier

The French phrase for a dealer, which is often used in table games such as roulette and blackjack, among other things. NetEnt's studio in Malta broadcasts a live casino with actual dealers in real time from where they are located.

Malta.

 

Customer service is available.

NetEnt has a function that aids licensees in the event of an incident or an issue.

 

D

Data center is a facility that stores information.

A server hall or equivalent facility where NetEnt physically conducts the transactions of its customers.

 

Deal

When the dealer deals cards to participants in a card game such as blackjack or poker, this is referred to as dealing.

 

Dealer

Table games such as roulette and blackjack make frequent use of this strategy. NetEnt's studio in Malmö, Sweden, broadcasts a live casino with actual dealers in real time.

in the country of Malta

 

Games for the desktop

All of the casino games that are offered to players on their desktop PC or Mac are referred to as "online casino games" (including laptops).

 

Deposit

A monetary payment, generally done online, that is used to credit a gaming account with monies so that it may be used to play.

 

E

Symbol for enlargement

This is a symbol that appears on the reels of slot machines and grows to fill the whole reel.

 

F

Round-up of noteworthy items

This is a unique round in slot machines that may feature free spins, interactive games, and/or the possibility to win extra rewards.

 

Flash

The development of vector graphics, animation, browser games, and so-called Rich Internet Applications is made possible via the usage of a multimedia and software platform (RIA).

 

Free Spins are available to you.

In slot games, the term "Free Spins" refers to a bonus feature in which the player is awarded a certain number of free spins while still playing the game. These free spins are still regarded to be a part of the same game round as before (the game round which triggered the Free Spins feature).

 

G

authority in the gaming industry

The regulatory authority of a country that is in charge of overseeing the gambling sector.

 

The game's genre

It is a term used to characterize the type of a casino game, for example, Live Casino, video slot, table games, and so on.

 

System for playing games

The NetEnt CasinoModuleTM is a gaming system developed by NetEnt. The gaming system has been integrated with the licensee's system or platform to provide a seamless experience.

 

victory in the game

Player bets minus player winnings equals player wins.

 

General Availability (GA) Date is the date on which a product becomes generally available.

A new game, product, feature, or service from NetEnt is made available to all of its clients on the same day it is released.

 

Gross Gaming Revenue (GGR) is the total amount of money made by gambling (GGR)

Game Yield is another name for this term. The term used across the industry is essentially the same as the gross game victory. Calculated by subtracting player bets from player winnings and subtracting player compensations.

as well as bonuses

 

H

Hand

Card games such as blackjack are played using the cards handed to a player after shuffled cards by the dealer.

 

The cost of hosting

Licensees are billed a fixed monthly hosting price that covers customer assistance, IT service management, incident handling, issue handling, hosting expenses, and other related costs.

bandwidth.

 

a facility for hosting

The same goes for a data center. The NetEnt-hosted CasinoModule TM is a physical location where the licensee's CasinoModule TM is located.

 

HTML

Hyper Text Markup Language (HTML) is an abbreviation. The markup language used to construct web pages is a standard. HTML and CSS are often used to create web pages.

HTTP is the protocol used to convey data over the Internet.

 

HTML5

In this version of the HTML standard, we are on the fifth iteration. Since 2015, all NetEnt games have been designed on the HTML 5 standard.

 

I

Integration

Integration refers to the operations and tasks that are carried out in order to link the licensee's account platform with the NetEnt CasinoModuleTM in order for games to be played.

It is possible to launch

 

J

Jurisdiction

Authorities for the administration of justice are restricted to a certain geographical region or specialized area of duty. Term used to denote the regulated marketplaces in which NetEnt has a presence.

licenses.

 

L

Casino with a physical location

All land-based casinos that are not on the internet. Casinos that are not online are referred to as offline casinos.

 

Casinos that are open 24 hours a day

A game type refers to a casino game with actual dealers that is broadcast through videolink in real time from a gaming studio, such as roulette or blackjack. There are many such game types.

 

Blackjack with a Common Draw in real time

Draw a picture in real time Blackjack is a sort of Live Casino Blackjack game in which many players may engage at the same time, as opposed to regular blackjack, which only allows one person to participate at a time.

a maximum of seven players may be accommodated

 

Win a share of the local jackpot

In a single jurisdiction, a local jackpot is available to just one operator.

 

M

The maximum amount of money you may wager

The highest amount of money that may be wagered on a casino game like as roulette or blackjack.

 

Multichannel

The ability to play our games on a variety of platforms, such as desktop computers, tablets, smartphones, and land-based gaming machines, is important to us.

 

Multi-player

This enables a player to interact with other players who are sitting at the same table in real time. This feature is only available for our Live Casino games. It is not accessible for any of our random number generator games.

 

Multiplier

This is a term used to describe a slot machine function in which payments may be multiplied up to a set number of times.

 

N

Net gaming revenue is defined as the sum of all gaming revenues.

The meaning used across the industry is the same as the term "net game victory." This figure is calculated as the sum of player bets minus winnings, as well as bonus charges and market tax.

 

O

Supplier to the online casino industry

a subcontractor working for a gambling operator or an online casino NetEnt is a software provider for online casinos.

 

Operator of an online casino

Term used to refer to NetEnt's clients, who are gaming firms that in turn provide casino games to consumers. They often provide other games, including as betting and poker, in addition to the ones listed above. They are often referred to as online casinos, with one of our customers, ComeOn, being one of them.

 

P

Payback

See the section on payout. When a certain game is played, the proportion of bets returned to players is calculated on an average and over time.

 

Payline

These are the lines on which winning symbols must appear in order for the player to win a prize in a slot machine game.

 

Payout

Payback and return on investment (ROI) are other terms for the same thing. Player winnings from a slot machine are calculated as a percentage of total bets returned to the player on an average basis over time.

 

Paytable

This section discusses the potential combinations and values of winning symbols, as well as the meanings of the wild, scatter, and other symbols in each casino game that is discussed.

 

Players

The clientele of the gambling operator. Customers who play NetEnt's games on a regular basis.

 

Jackpots that are pooled

A higher prize that is pooled from numerous operators via the use of a single game is available to players.

 

Services provided by professionals

Additionally, NetEnt may supply its clients with other services like as additional integration services/migrations/consolidations, gaming client branding, business intelligence, and other similar services.

Marketing services such as strategy development, online banner design, poster design, and training are available.

 

A progressive jackpot is a prize that grows over time.

The progressive jackpot will be funded by a predetermined percentage of each stake, which will continue to grow until it is won by one of the players.

 

Slot machines with progressive jackpots

These games are connected together, and the prize pool for the jackpot is pooled.

 

R

The Random Number Generator is a program that generates random numbers (RNG)

It is a kind of computer procedure that is used to produce a series of numbers or symbols that is completely unpredictable. Slot machines are sometimes referred to as random number generator (RNG) games.

 

Returning to the Player (RTP)

Payback and payout are other terms for the same thing. When a certain game is played, the proportion of bets returned to players is calculated on an average and over time.

 

Revenue-share

Licensee fees that are computed as a percentage of the income generated by NetEnt's games for the client.

 

Reels

In slot machines, a reel refers to one of the columns on which players attempt to strike certain symbols or win rewards by spinning the reels. Frequently, there are five reels that appear like columns.

 

Royalty

NetEnt's clients are required to pay NetEnt royalty payments on a monthly basis. In NetEnt's games, they are computed as a percentage of the total casino result after deducting the commission.

Tax on the market that is controlled.

 

S

Scatter

Symbols used in a slot machine game. Three of these symbols are often required in order to enter a bonus round, win free spins, or do something similar. Scatters are seldom required to occur on a certain line in a game.

in order to produce a victory

 

Spin

This term refers to a wager in a slot machine game. The player must push the spin button once to get the reels to spin once.

 

Fee for system integration

NetEnt receives upfront payments from licensees to cover the expenses of hardware investment, integration, and testing prior to the introduction of NetEnt's games on the market.

 

Symbol

In slot games, a symbol refers to an image or a numerical value that appears on the reels.

 

V

Slot machines, whether video slots or basic slots

Slot games, which are the company's primary product, are described in a variety of ways.