Heard of Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR)? Learn more about them and the difference between NGR and GGR.
Knowing what net gaming revenue and gross gaming revenue are is essential if you are in the iGaming business. A thorough understanding of these two also helps if you choose to venture into online casino affiliation. With these, we will explore more about these two key performance indicators: how they are different, how to calculate them, and see first-hand application for Bitcoin casino affiliates.
What is Net Gaming Revenue?
Net Gaming revenue (NGR) indicates the actual profits of a fiat-money or Bitcoin casino, without various operating expenses. These excluded expenses include the casino bonuses given to players, payments made to game developers, payments to partner companies, fees spent on payment systems, taxes, and licensing, among others.
By looking at an online casino’s NGR, you can track its profits and losses, as well as the cumulative figure for all winnings, expenses, and so on. Some call it the real income of a casino as it provides a definitive figure of a casino’s basic profits share for every month.
What is Gross Gaming Revenue?
Gross gaming revenue (GGR), on the other hand, is the difference of the total value of players’ bets less the total value of winning bets. It determines how much money the casino has profited from its players’ activity. This value, however, is before other expenses like bonuses, fees, and additional payments are deducted.
Difference between NGR and GGR
To better understand the difference between NGR and GGR, we will look at how they are calculated using the legend below:
A – total amount of all bets placed by players in the casino
B – the sum of all payments made to players in the casino
C – the sum of all bonuses that players received in the casino
D – the total value of all taxes charged to the casino
To calculate for the GGR, we use the formula GGR = A – B.
To calculate for the NGR, we use the formula NGR = A – B – C – D.
For instance, a Bitcoin Casino 1 receives a sum of bets amounting to 2 million USD and paid winning bets amounting to 500,000 USD, with bonuses given totaling 75,000 USD. Then Bitcoin Casino 1 pays 15% tax on GGR.
This means that:
A – 2,000,000
B – 500,000
C – 75,000
D – 500,000 x 15% = 75,000
Using the formula for GGR, we will get:
GGR = 2,000,000 – 500,000 = 1,500,000
As for the NGR, we will get:
NGR = 2,000,000 – 500,000 – 75,000 – 75,000 = 1,350,000
Therefore, the GGR of Bitcoin Casino 1 for one year is 1.5 million USD while its NGR is 1.35 million USD.
Bitcoin Casino NGR in Online Casino Affiliation
When it comes to online casino affiliation, affiliate programs often compute for an affiliate’s monthly revenue share using the casino’s NGR. This is why it is important that Bitcoin casino affiliates should learn about NGR, more so the difference between NGR and GGR. Here are the three of the top Bitcoin casinos in 2020, along with how they use their NGR to determine a casino affiliate’s revenue for the month:
BitStarz Casino NGR vs GGR
BitStarz Casino is inarguably one of the most popular names when it comes to the Bitcoin gambling sector. Licensed in Curacao and accepting both fiat-money and cryptocurrency, BitStarz boasts a massive casino library of over 2,600 titles developed by leading and up-and-coming game developers and studios. It also features an exciting set of Bitcoin casino bonus deals, starting with its 5 BTC Welcome Bonus package.
As for its affiliate program, the commission percentage for the month is based on the NGR, enabling affiliates to earn 25% of the NGR up to 40%. In order for affiliates to get a higher percentage of the BitStarz Casino NGR, their referrals must increase their bet amounts as follows:
Up to 1 BTC or up to €5k a Month = 25% NGR
1 to 2 BTC or €5k to €10k a Month = 30% NGR
2 to 4 BTC or €10k to €20k a Month = 35% NGR
Over 4 BTC or over €20k a Month = 40% NGR
Oshi Casino NGR vs GGR
Oshi Casino is one of the known casinos supporting cryptocurrency payments. It boasts an expansive library of games, majority of which are various kinds of online slots. But players can also find the classic table games and card games on board, along with live casino table games designed and published by renowned software companies. Oshi Casino features am attractive Bitcoin casino welcome bonus amounting to 5 BTC when all the first four deposits qualify for the bonus.
Oshi Affiliates, its proprietary affiliate program, uses the Bitcoin casino NGR as well to determine the commission percentage an affiliate receives for the month. But instead of focusing on the referrals’ bets and deposits, the program focuses on the number of referrals to determine the affiliate’s commission plan:
10 players = 30% NGR
10-20 players = 35% NGR
20-40 players = 40% NGR
40-60 players = 45% NGR
60> players = 50% NGR
mBit Casino NGR vs GGR
Now exclusively catering to cryptocurrency players, mBit Casino becomes a standout on the iGaming market. It pairs its ever-growing collection of bitcoin best games with amazing bonuses and promos, including free spins, cashback, reload bonuses, and its very own VIP Program. New players will get their hands on the three-tier welcome bonus amounting to 5 BTC plus 300 free spins.
mBit Partners pays online casino affiliates up to 50% of the Bitcoin casino NGR. It uses the net revenue to determine the commission percentage based on the tier.
Tier 1 (0 Net revenue in mBTC) = 25% NGR
Tier 2 (1,000 Net revenue in mBTC) = 30% NGR
Tier 3 (3,000 Net revenue in mBTC) = 35% NGR
Tier 4 (10,000 Net revenue in mBTC) = 40% NGR
Tier 5 (25,000 Net revenue in mBTC) = 45% NGR
Tier 6 (50,000 Net revenue in mBTC) = 50% NGR
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Going over Bitcoin casino NGR vs GGR, as well as the importance of NGR in Bitcoin casino affiliation, you should now have a better understanding of the two financial KPIs and of the process of determining your monthly commission when you join the affiliate program of top Bitcoin casinos.
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