Gross Gaming Revenue (GGR)
Brief Definition
Gross Gaming Revenue (GGR) is the total gaming revenue recorded by an iGaming operator over a defined period after subtracting winnings awarded or credited to players on settled bets or game rounds.
Detailed Explanation
GGR is the primary revenue metric used in iGaming to measure revenue generated from gaming activity. It represents the revenue retained by an operator before operating expenses, taxes, bonuses, and other deductions are applied. Because of this, it is widely used by operators, regulators, investors, and suppliers to assess financial performance and serves as the basis for metrics such as Net Gaming Revenue (NGR) and Average Revenue Per User (ARPU).
Although the calculation is straightforward, GGR can fluctuate even when wagering activity remains relatively stable, because player wins vary. In sportsbooks, it is influenced by sporting results, betting patterns, and the proportion of winning bets.
In some regulated markets, GGR is also used as a basis for gaming tax and regulatory reporting.
Formula
GGR = Total Bets − Total Wins
Bets and wins must cover the same reporting period and scope, and only settled outcomes count – open bets, cancelled bets, or unsettled game rounds are excluded.
Calculation Example
During one month, players place bets totalling EUR 1,000,000 and receive EUR 940,000 in winnings.
- Total bets: EUR 1,000,000
- Total wins: EUR 940,000
- GGR: EUR 1,000,000 − EUR 940,000 = EUR 60,000
The following month, turnover remains at EUR 1,000,000, but player winnings increase to EUR 980,000.
- Total bets: EUR 1,000,000
- Total wins: EUR 980,000
- GGR: EUR 1,000,000 − EUR 980,000 = EUR 20,000
The example shows that the same turnover can produce different GGR figures when player winnings change.
Examples and Use Cases
Operator Reporting
An operator tracks GGR over time to see how gaming revenue changes across products or reporting periods. The metric also serves as the starting point for calculating NGR and other revenue-based KPIs.
Commercial Agreements
Most commercial agreements use GGR as the basis for fees or revenue share. The agreement specifies which revenue metric applies and how the payment is calculated.
Regulatory Reporting
In regulated markets, operators are typically required to report GGR to the relevant authority. Depending on the jurisdiction, GGR can serve as the basis for calculating gaming tax.
