GGR vs. NGR – Two Most Popular Metrics in the Gaming Industry
What is Gross Gaming Revenue (GGR)
Gross gaming revenue (GGR) is the total amount of money players wager minus the amounts paid out to them as winnings.
Essentially, GGR represents the total revenue generated by any online gaming business before any costs or expenses are taken into account.
GGR = Total amount of money wagered – Amount paid out to players
Suppose your online casino received $10,000,000 in bets this month and paid out $9,000,000 in winnings to players.
You can calculate the GGR this way:
GGR = $10,000,000 – $8,750,000 = $1,250,000 (“Total amount of money wagered” – “Amount paid out to players”)
It’s important to mention that some resources use the “Amount paid out to players” and the RTP interchangeably.
The RTP refers to the percentage of wagered money that a game or machine is expected to pay back to players over time.
This is a given theoretical percentage for the return to player (RTP)
For example, if a game has an RTP of 96%, it means that, on average, players can expect to receive back 96% of the total amount they wagered on that slot machine.
Over a long period of time. In theory.
The remaining 4% represents the house edge, which is the casino’s built-in advantage to ensure profitability.
So, the “Amount paid out to players” can’t be the same as RTP, because the amount paid out to players represents:
- The amount of money players receive as winnings from their bets.
- It is the sum of all the prizes and payouts during a specified period.