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.
Definition
Net Gaming Revenue (NGR) is a core financial metric that starts from Gross Gaming Revenue (GGR) — total stakes minus winnings paid to players — and then deducts items that reduce what the operator truly earns, most commonly bonus and free-bet costs, gaming/betting duties and taxes, and often payment-processing fees and gaming-software (platform/provider) royalties. In short: NGR = GGR − (bonuses + applicable taxes + fees). Because the exact deductions vary by operator, contract, and jurisdiction, NGR is not a single standardized figure the way GGR is — always check which items a given report includes. NGR is widely used as the revenue base for revenue-share deals (e.g. affiliate and B2B agreements) and as a cleaner proxy for the money available to cover marketing, staff, and profit.
Worked example
Suppose a slot has an RTP of 96%, meaning a house edge of 4% (RTP + house edge = 100%). Over a month players wager £1,000,000 in total stakes and receive £960,000 back in winnings. GGR = £1,000,000 − £960,000 = £40,000 (which equals the 4% theoretical hold on turnover). Now apply the deductions that turn GGR into NGR: the operator awarded £8,000 in bonus credits, owes £6,000 in gaming duty, and pays £2,000 in payment-processing and provider fees. NGR = £40,000 − (£8,000 + £6,000 + £2,000) = £24,000. So while GGR was £40,000, the operator's Net Gaming Revenue was £24,000 — the figure an affiliate revenue-share percentage would typically be calculated against.
Why it matters
NGR is the number that reflects real, spendable earnings, so it drives commercial decisions that GGR alone can hide: affiliate and B2B partners are usually paid a percentage of NGR, finance teams use it to judge whether a player segment or promotion is actually profitable after bonus and tax costs, and analysts use it to compare operators on a like-for-like basis. Understanding NGR also exposes the gap between headline turnover and true margin — a critical literacy point given that these figures are built on player losses, not player gains.
Related
Note: The GGR-to-NGR relationship (NGR = GGR minus bonuses, taxes, and fees) is standard, but the precise deductions are not universally fixed: some operators exclude payment fees or provider royalties, and jurisdictions differ on whether gaming tax is levied on GGR or NGR and at what rate. Treat any specific NGR formula or revenue-share base as contract- and jurisdiction-dependent and verify it against the relevant agreement or regulator. The RTP/house-edge relationship and GGR = stakes − winnings are stable definitions.