NGR is GGR minus bonus cost, jackpot contributions, gaming taxes and provider fees, and represents the revenue an iGaming operator actually keeps.
Net Gaming Revenue (NGR)
**TL;DR:** NGR is GGR minus bonus cost, jackpot contributions, gaming taxes and provider fees, and represents the revenue an iGaming operator actually keeps.
What it means
NGR is the truthful top line of an iGaming P&L. GGR looks impressive on a pitch deck, but NGR is what funds salaries, marketing, and EBITDA. Definitions vary slightly by company — some include payment processing costs in NGR, others class them below — so contractual NGR (used in affiliate revenue share) needs to be defined explicitly in every deal.
For affiliates on rev-share, NGR is usually GGR minus: bonus cost, chargebacks, gaming duty, and royalties to game providers, before operator overhead.
Formula / How it's measured
NGR = GGR − Bonus Cost − Jackpot Contribution − Gaming Tax − Provider Royalties (− optionally Payment Costs and Chargebacks)
Example: a month with $2.1M GGR, $380K bonus cost, $50K jackpot, $210K gaming tax (10%), $180K provider royalties → NGR = $1.28M (61% of GGR).
Why it matters for operators
NGR is the basis for board reporting, EBITDA forecasting, and most affiliate rev-share contracts (typically 25–45% of NGR). LTV models that don't use NGR are misleading. Margin compression at the NGR line — often via aggressive bonusing — is the most common cause of unprofitable iGaming brands.
Common benchmarks (2026)
- NGR / GGR ratio: 55–70% mature brand, 35–50% scaling brand burning bonuses
- NGR margin healthy target: 60%+ post bonus
- Casino NGR/GGR is usually higher than sportsbook (lower bonus cost as % of GGR)
Common mistakes
- Quoting GGR externally while internal models use NGR — creates investor confusion
- Excluding bonus cost from NGR to inflate it for affiliate disputes
- Not netting jackpot contribution, which can be 1–3% of slot GGR
See also