Contribution Margin vs NGR (Net Gaming Revenue)
What each means, how they relate, and when to use which.NGR is net gaming revenue, GGR after bonuses and taxes; contribution margin goes one step further, subtracting the variable costs of serving that revenue, such as payment and platform fees. Contribution margin sits below NGR on the P&L and shows what each unit of revenue actually contributes to fixed costs and profit.
Revenue left after subtracting the variable costs directly tied to serving a player or segment, before fixed overheads.
Use it when Use NGR for revenue after bonuses and taxes.
Full definition of Contribution Margin →NGR is what an operator actually keeps from players' bets after paying out wins and then subtracting bonuses, gaming taxes, and certain operating fees.
Use it when Use contribution margin for what remains after variable costs, before fixed overheads.
Full definition of NGR (Net Gaming Revenue) →The key distinction
- NGR nets off bonuses and taxes; contribution margin also nets off variable operating costs.
- Contribution margin is further down the P&L than NGR.
- NGR is a revenue line; contribution margin is a profitability measure.
Common questions
What's the difference between Contribution Margin and NGR (Net Gaming Revenue)?
NGR is net gaming revenue, GGR after bonuses and taxes; contribution margin goes one step further, subtracting the variable costs of serving that revenue, such as payment and platform fees. Contribution margin sits below NGR on the P&L and shows what each unit of revenue actually contributes to fixed costs and profit.
What is Contribution Margin?
Revenue left after subtracting the variable costs directly tied to serving a player or segment, before fixed overheads.
What is NGR (Net Gaming Revenue)?
NGR is what an operator actually keeps from players' bets after paying out wins and then subtracting bonuses, gaming taxes, and certain operating fees.
More term comparisons
Understanding, not advice. This explains how two terms differ so you can read the industry clearly. Nothing here treats gambling as a way to make money; the maths favours the house. 18+.