Ggr casino definition

When online casino operators want to gauge their progress, they often analyse Gross Gaming Revenue (GGR) first since it is one of the key performance metrics in the gambling industry. In short, GGR is the money players wager minus their winnings, and to calculate it, take the total amount bettors staked and subtract the amount you have paid out. As simple as the GGR formula is, it provides online gambling operators with vital data about their strengths and helps them understand areas for improvement.

Introduction to the Dynamics of Gross Gaming Revenue (GGR)

Gross gaming revenue is all about how much money you are left with after your players have wagered and you have paid them out. So, when trying to understand the dynamics of GGR, you have to look at only these two factors &#; the amount of money customers spend over a given period and how much of that money you return to players in the form of paid-out winnings.

There are no additional variables you need to consider when calculating gross revenue in the competitive iGaming industry. You don&#;t need to subtract costs related to taxes, royalty fees, employee salaries, or other expenses. That means GGR gaming figures are directly related to how much your customers spend and win. So, it is not surprising that GGR is often referred to as game yield, i.e., the money that stays in the house after customers have played your games.

Gross Gaming Revenue and Its Significance in the Gaming Industry

There are various reasons why you should understand and calculate gross gaming revenue. First of all, it is an excellent indicator of the financial health of your online casino. If your gaming revenue is high, you will be able to service all company costs, keep staff happy, and have the funds for future investments.

Also, if your revenue figures are good, that tells you that your gambling offer appeals to players, and instead of joining competitors, they are deciding to stay with you and spend their money on your platform. And the more money you retain from customers, the easier it will be for your business to navigate the waters of the industry in which hundreds of online casinos and gambling sites are vying for customers.

In this context, web development plays a significant role. A well-structured and user-friendly website not only attracts players but also enhances their gaming experience, contributing to increased GGR. Furthermore, when it comes to player satisfaction, high GGR figures also indicate that you offer generous bonuses, good customer support, adequate payment methods, and a user-friendly platform that players are instinctively attracted to.

How to Calculate Gross Gaming Revenue?

Calculating GGR is straightforward and essential for evaluating your financial performance. Let&#;s say you are about to post your quarterly results and want to calculate how much revenue you have obtained from players. For this example, we assume customers spent $10, and won $6, in the past three months.

Using the GGR formula (Money Players Wagered &#; Money They Won = GGR), you get $10, &#; $6, = $3, So, the gross gaming revenue (total revenue without any expenses) on your quarterly financial statements will be $3,

The GGR margin is another metric directly related to gross revenue. It shows the percentage of money you keep from the bets made. The formula for calculating the GGR margin is GGR / Total Amount Gambled. So, the GGR margin for the example above is $3, / $10, = , or 35%. As with gross revenue, the higher the GGR margin, the better the health of your business.