GGR & NGR
GGR & NGR
Cash KPIs
Financial indicators are quite transparent and are responsible for the profitability of the casino.
Gross Game Income (GGR)
Gross Gaming Revenue or GGR is one of the basic KPIs in the gambling business. The formula for calculating it is simple: the sum of all bets minus the sum of all winnings. This figure reflects the amount remaining in the casino as a result of the visitors' gambling, but before the repayment of any operating expenses of the project. If we draw a parallel with a regular store, then GGR characterizes revenue, but not profit.
It should be noted that the GGR value can vary from month to month depending on the luck of the players. For example, even if the number of players and the amount of bets made in July and August is the same, the GGR may still be different. Why? - Because online casino winnings are randomly generated and actual game results may differ from the “theoretical” average return.
Net Gaming Income (NGR)
Net Gaming Revenue (NGR) reflects the real profit of the casino, net of all royalties and other operating expenses.
Such expenses can be bonuses (ie "drawn" money, which players also place bets with), commissions of payment systems, deductions to game providers, payments to affiliate partners, as well as fees for renewing a gambling license, taxes, etc.
The NGR indicator is excellent for express the analysis of project success. However, unlike the simple and straightforward GGR, there is no general approach to measuring NGR. Therefore, for the correct interpretation of financial results, specific formula for calculating this indicator should be developed and adhered to in the future.
NGR to Deposits
The ratio of NGR to the number of deposits reflects how much profit is generated from the deposits made at the casino. Of course, the higher the value, the better.
Deposit Rates
The ratio of the number of bets to the number of deposits demonstrates the turnover of money in games. Ascending values may indicate that the casino is giving out too much money in the form of bonuses.
To summarize, monetary KPIs serve to assess the general state of affairs: the casino is making a profit / no profit/profit growth is not intensive enough. Analysis based on these metrics requires further development and the introduction of the next type of KPI.