LTV is the total net gaming revenue a player is expected to generate for an iGaming operator over their entire active lifecycle, used to validate acquisition spend.
Lifetime Value (LTV)
TL;DR: LTV is the total net gaming revenue a player is expected to generate for an iGaming operator over their entire active lifecycle, used to validate acquisition spend.
What it means
In iGaming, LTV is almost always expressed in NGR terms (after bonus cost, jackpot contribution, and provider fees), not GGR. Operators model LTV on cohorts — players who deposited in the same month — and track how their cumulative NGR develops over 1, 3, 6, 12 months.
LTV is rarely a single number. Mature operators run separate LTV curves per geo, vertical (sports vs casino), channel (Meta vs affiliates vs SEO), and bonus mechanic, because curves differ dramatically.
Formula / How it's measured
Two common methods:
- Cohort actual: cumulative NGR(cohort) / NDCs(cohort) at month N.
- Predictive: avg deposit × deposit frequency × margin × expected lifespan, discounted.
Example: LATAM sportsbook M1 cohort NGR = $42, M6 = $115, M12 = $168 per NDC. Acquisition CPA $70 → 6-month payback at $115 LTV.
Why it matters for operators
LTV is the ceiling on what acquisition can profitably spend. The standard heuristic is CPA ≤ 6-month LTV; CPA ≤ 3-month LTV is aggressive but cash-positive. Without an LTV model, paid UA decisions are blind. CRM teams also use LTV to size VIP investment and bonus budgets.
Common benchmarks (2026)
- LATAM casino 12-month LTV: $150–$350 per NDC
- LATAM sportsbook 12-month LTV: $120–$280
- EU regulated casino: $400–$900
- US sportsbook: $300–$700 (state-dependent, heavily promotional)
- Casino LTV is typically 1.5–2.5× sportsbook because bet frequency is higher
Common mistakes
- Reporting GGR-based LTV instead of NGR (overstates value 20–60%)
- Using blended LTV across geos to justify spend in a low-LTV market
- Ignoring cohort decay — early FTDs after a launch outperform steady-state LTV
See also