GGR vs NGR for Online Casinos

In 2017, Gross Gaming Revenue reported by US casinos was $41.2 billion. But what exactly is this Gros s Gaming Revenue? GGR, as it’s usually abbreviated in the online casino and gaming industry, is a measure of profit. The profit comes from the difference between the cash players bet and the cash they win.

The top 5 countries in Europe with the largest online casino and gaming revenue in 2017, include:

  • France led the pack with a GGR of 2,314 million Euros.
  • Great Britain netted 1,303 million Euros.
  • Switzerland grossed 688 million Euros
  • Germany at 667 million Euros
  • Netherlands at 610 million Euros.

As with any business, performance in the gaming industry is managed using key performance indicators (KPIs). Like the pulse, the KPIs are an indicator of a company’s performance level and is a basis for comparison. The Gross Gaming Revenue is the surest determinant of the economic value in the gaming industry. GGR can also be seen as the sales or earning of a casino.

If you are curious, you will find the other KPIs like Net Gaming Revenue (NGR), Cost per Acquisition (CPA), Churn Rate (CR), Customer Lifetime Value (CLV) to be very interesting reads. Customer Lifetime Value, for example, is a significant input while making gaming business choices.

GGR Explained

A deeper understanding of Gross Gaming Revenue will lead you to the understanding that gaming sales encompass all the things wagered, including cheques and the monetary value of other committed instruments by the players over a given period of time. Gross Gaming Revenue is called the gross game win or game yield in some gaming industry quarters.

If you love mathematics, it is simply arrived at by deducting player bets from the player wins (not forgetting to deduct player bonuses and compensations if applicable). If you are the business owner, the higher this profit is, the better since you will have a comfortable margin to operate with.

GGR is a measure of profit in the gaming sector of the economy. From a purely economic standpoint, in comparison to the rest of an area’s economy, Gross Gaming Revenue provides a reflection of the real economic value added by the gaming industry. You will see that there are many reviews that celebrate the contribution of the gaming industry to the overall performance of an area’s economy.

The benefits include employment opportunities, increased tourist visits and good revenue to the government through taxes. On the other hand, we have also noticed that there are many people who consider the profits gaming operators make as immoral.

How to improve your net gaming revenue (NGR)

Net Gaming Revenue (NGR) is the profit a casino makes from its activities after subtracting expenses such as transaction fees, bonuses offered to players, and other charges. The NGR is considered casinos’ basic profit and is calculated at the end of every financial month. This is in order to determine the trend of the business, to set long-term goals for the casino, and to put corrective measures where the need arises.

Every business in any industry does this in order to sustain itself in the market. Calculating this shows the expenses that come with giving new players bonuses and paying employees. You can find a list of casinos with the best payouts here. The performance of many casinos has been decreasing over the years. Several factors have influenced this. These include:

  • Increase in crime in the industry. Upcoming online betting sites have been accused of cheating their customers leading to insecurity.
  • Competition from upcoming online betting sites.
  • Increase in taxes by the government has caused additional costs on the charges in casinos. There are several benefits of gambling which in some regions are watered down by the disadvantages. Several countries have experienced great economic growth due to Casino Tourism and other gambling activities. The cash-flow of a state improves with the increased number of transactions.

How does taxes influence?

Taxes paid to the government are also deducted as part of the inevitable expenses. To improve the revenue for your online or land-based casino, here are some tips: *Offering a better customer experience. This is by giving professional service to your clients and promotional gifts like bonuses.

It also includes prompt and efficient customer support:

  • Improve your rates on different sites. The ratings of customer retention will encourage more people to join you.
  • Partner with different industries like hospitality and tourism, which increases your market.
  • Give your clients adequate information and fair terms. You should also consider moving your casino to the VR platforms.

Casino tourism has led to an increase in NGR of businesses. Statistics show that different cities have reported a positive trend in the casino business. Tourists from countries that have banned gambling go to other countries to enjoy gaming or utilise online platforms.

There has also been an increase in trade in the regions where gaming has taken over the marketplace. The industry is being accepted gradually in different continents. Gambling is legalised in specific areas, casinos, and resort clubs and has led to the growth of betting sites for sports. Because making money online has never been this easy, you should be careful when choosing a site to play.