GGR Calculator: Gross Gaming Revenue, Hold and NGR
Calculate gross gaming revenue (GGR) and hold for casino and sportsbook, then take GGR down to net gaming revenue (NGR) and net revenue. Choose which deductions count towards NGR, so the figure matches your platform report, affiliate programme or deal terms.
GGR, hold and NGR calculator
Calculate gross gaming revenue and hold for casino and sportsbook, then take it down to NGR and net revenue using the definition you work with.
By product
| Stakes | Paid out | GGR | Hold |
|---|
Hold = GGR ÷ stakes. Payout ratio = paid out ÷ stakes, so hold + payout ratio = 100%.
From GGR to net revenue
What is this revenue worth? Online casinos are usually valued at a multiple of annual NGR set by the licence, cross-checked against EBITDA. Run your NGR through the valuation calculator, or talk to us about selling.
For illustration. Accounting treatment, NGR definitions and gaming tax rules differ by operator, contract and market. Check the rules that apply to you.
How to calculate GGR, hold and NGR
GGR = real-money stakes − winnings paid to players
GGR is what an operator keeps from players before any costs. For a sportsbook, use settled bets only: stakes on bets that have been decided, minus what was paid on them. Open bets are counted when they settle.
Hold = GGR ÷ stakes
Hold shows how much of each euro staked the operator keeps. Its mirror image is the payout ratio (winnings ÷ stakes), so hold + payout ratio = 100%. Casino hold is normally a small percentage, because most casino games are designed to pay back the large majority of stakes over time. Sportsbook hold is usually higher, but it moves with results from month to month.
NGR = GGR − the deductions in your NGR definition
There is no single definition of NGR. Bonuses and free bets are almost always deducted. Gaming taxes usually are. Game provider fees, payment fees and other costs are deducted in some contracts and not in others. That is why the calculator lets you choose.
GGR, NGR and net revenue compared
| Measure | What it deducts | Where it is used |
|---|---|---|
| Stakes (turnover, handle) | Nothing | Volume, turnover taxes |
| GGR | Winnings paid | Regulatory reporting, many gaming taxes, B2B revenue share |
| NGR | GGR minus bonuses, usually gaming tax, sometimes other fees | Affiliate revenue share, operator valuations, earnouts |
| Net revenue (as used here) | NGR minus provider and payment fees outside the NGR definition | Contribution before marketing, staff and overheads |
Worked example (calculator defaults)
| Stakes | Paid out | GGR | Hold | |
|---|---|---|---|---|
| Casino | €2,000,000 | €1,920,000 | €80,000 | 4.0% |
| Sportsbook | €300,000 | €276,000 | €24,000 | 8.0% |
| Total | €2,300,000 | €2,196,000 | €104,000 | 4.5% |
| Step | Amount |
|---|---|
| GGR | €104,000 |
| − Bonuses and free bets | €20,000 |
| − Gaming tax at 15% of GGR | €15,600 |
| NGR | €68,400 (66% of GGR) |
| − Game provider fees (10% of casino GGR) | €8,000 |
| − Payment fees | €3,000 |
| Net revenue | €57,400 |
If the same contract also deducted provider and payment fees, NGR would be €57,400 instead of €68,400, a 16% difference on the same month's trading. These are illustrative inputs, not market averages.
When gaming tax is charged on stakes
Some markets tax turnover rather than GGR, such as Germany's tax on online slot stakes. In the example, a 5.3% tax on all €2,300,000 of stakes would cost €121,900, more than the month's entire GGR. NGR would then be −€37,900. Turnover taxes change the economics of a market far more than the headline rate suggests. Check the base and rate in each market before comparing businesses.
Why the NGR definition matters in a deal
- Valuation: online casinos are usually valued at a multiple of annual NGR, so a definition that deducts less produces a higher number. Buyers rebuild NGR on their own definition before they price.
- Affiliate deals: revenue share is paid on NGR as each programme defines it, which is why two programmes with the same percentage can pay very differently.
- Earnouts: an earnout on NGR needs the definition written into the purchase agreement, including bonus treatment, taxes and fees.
To see what an NGR figure is worth, use our casino valuation calculator. For the wider picture, read what GGR is and how casinos use it.
iGaming GGR Calculator: The Metric That Anchors Value, Risk, and Strategy
Gross Gaming Revenue (GGR)—stakes or handle less player winnings—is the lingua franca of online gambling. Regulators tax it, investors size markets with it, and both B2C and B2B contracts are priced off it. But “GGR” is not a single, uniform number.
Its behavior changes by product vertical, its conversion to profit is shaped by local tax and regulation, and its reported form varies with bonus policy and accounting treatment. For acquirers, lenders, and boards, getting GGR right is the starting point for valuation, diligence, and deal structuring.
Definition, Reporting, and Why It Matters
At its core, GGR captures net win: for casino, stakes less payouts against a theoretical RTP; for sportsbook, settled handle less winning bets; for poker, the rake; for lottery, the margin between ticket sales and prizes. It differs from Net Gaming Revenue (NGR), which typically deducts bonuses, free bets, jackpot contributions, and sometimes gaming duties.
Accounting revenue can diverge further under IFRS/GAAP if the operator is an agent (net commission) rather than a principal (more akin to NGR). These distinctions materially affect comparability, covenants, and earnouts. Align the definition up front in LOIs and SPAs to avoid disputes and mispriced risk.
Vertical Dynamics and GGR Volatility
Not all GGR is created equal. Online casino tends to deliver stable holds with relatively predictable variance; live casino can lift engagement and blended margins but may draw regulatory scrutiny around session durations and limits. Sportsbook is structurally more volatile: long-run holds may center in high single digits, yet short-term swings are driven by event results, pricing, and product mix.
The rise of bet builders and same-game parlays elevates hold but increases variance and responsible gaming oversight. Poker relies on liquidity and game ecology; rake inflation has practical limits in regulated markets.
Lottery and instants usually offer fixed margins and lower volatility, often in state-run or tightly controlled contexts. These hold behaviors flow through to cash flow timing, working capital, and covenant headroom—critical for leveraged deals.
Tax, Regulation, and the Conversion of GGR to EBITDA
Tax design determines the “real” value of GGR. Many markets levy GGR-based taxes; others, like Germany for online slots and poker, tax turnover, compressing margins and encouraging offshore leakage.
US states span a wide range of GGR tax rates by vertical, with some sports betting taxes exceeding 50% and iCasino rates varying widely; Ontario’s revenue-share regime functions similarly to a GGR tax. Bonus caps, advertising restrictions, and affordability checks (as seen across parts of the Nordics, Italy, and the UK) directly reshape cohort economics, curbing acquisition efficiency and changing ARPU and payback.
Channelization—the share of gambling spend captured by licensed operators—ultimately dictates whether higher tax rates translate to public revenue or to migration offshore. Underwriting must model both today’s statutory burden and plausible policy shifts over a five-year horizon.
Quality of GGR: Durability Over Headline Growth
Headline GGR growth can mask fragile economics. A higher share from grey markets may boost net win but compress exit multiples and elevate enforcement risk.
Aggressive bonusing can inflate GGR while eroding NGR and cohort LTV; watch FTD share, bonus cost-to-deposit ratios, and promotional liabilities.
VIP concentration amplifies volatility and regulatory risk; strong KYC, affordability controls, and RG interventions stabilize earnings and protect licenses.
Payments matter: PSP coverage, approval rates, chargeback discipline, and anti-fraud tools directly affect realized net win and leakage. Buyers increasingly price the composition of GGR, not just its quantum.
B2B Through the Lens of Operator GGR
Supplier revenue models often fix to operator GGR via rev-share, sometimes layered with minimum guarantees or tiered take rates. Growth is therefore a function of client GGR, product adoption (e.g., live dealer, jackpots, SGP engines), and the supplier’s ability to win wallet share.
Concentration risk—two or three operators or a handful of high-risk markets—can materially raise volatility and downgrade the multiple. Underwrite client-level GGR trajectories, ramp schedules, and churn, and understand renegotiation risk around take rates.
Valuation, Deal Structuring, and Working Capital
EV/EBITDA remains the anchor, but GGR-based multiples help triangulate value across businesses with different bonus and tax regimes. EV/GGR and EV/NGR can normalize comparisons between sportsbook-heavy and casino-led mixes or between regulated and grey exposures.
Given sportsbook variance, consider earnouts linked to NGR or EBITDA with margin normalization and multi-season averaging, rather than raw GGR. Protect against timing effects with working capital true-ups for unsettled bets, pending free bet liabilities, and jackpot accruals.
In debt packages, build covenant cushions and liquidity buffers for sportsbook drawdowns.
Diligence and Forecasting: Separating Volume from Mix
Robust underwriting starts with reconciliation: match platform net win and game server reports to PSP cash flows and the general ledger, with bridges for bonuses, jackpots, FX, and voids. Decompose growth into actives, stake per active, and hold/mix. For sportsbook, strip out parlay contribution and test sensitivity to adverse results.
Build bottom-up, vertical-specific models: casino via spins, RTP, bet size, and session frequency; sportsbook via handle growth, pricing, product mix, and seasonality; poker via liquidity and rake settings.
Layer regulatory scenarios—e.g., Germany’s turnover tax impact, US state tax increases, Dutch/Italian bonus restrictions, or Brazil’s licensing cadence and payments infrastructure—to test the conversion of GGR to cash.
Operating Levers to Improve GGR Quality
Operators and suppliers can lift the durability of GGR without over-relying on subsidies. In casino: personalized lobbies, live content, and networked jackpots can drive engagement with controlled bonus intensity.
In sportsbook: disciplined risk, in-play UX, and parlay tools can raise hold while respecting RG guardrails. Marketing should pivot from blanket bonusing to lifecycle CRM, optimizing affiliate terms toward NGR. Payments upgrades—broader PSPs, higher approval rates, and frictionless withdrawals—improve net deposits and reduce churn and abuse.
Proactive compliance and affordability frameworks reduce enforcement risk and generally command higher valuation multiples.
The M&A Bottom Line
Treat GGR as the starting point, not the finish line. Define it precisely, reconcile it rigorously, and underwrite its conversion to NGR and EBITDA through the lenses of vertical mix, taxation, regulation, and responsible growth. Assets that compound value will pair regulated, predictable GGR with disciplined bonusing, resilient payments/compliance infrastructure, and product roadmaps that elevate engagement without inviting regulatory backlash.
Frequently asked questions
How do you calculate GGR?
Subtract the winnings paid to players from the real-money stakes they placed in the same period. For a sportsbook, use settled bets only. If players staked €2,000,000 and won €1,920,000, GGR is €80,000.
What is hold percentage?
Hold is GGR divided by stakes: the share of each euro staked that the operator keeps. €80,000 of GGR on €2,000,000 of stakes is a 4.0% hold. Hold plus the payout ratio always equals 100%.
What is the difference between GGR and NGR?
GGR is stakes minus winnings. NGR is GGR minus further deductions, almost always bonuses and free bets, usually gaming taxes, and in some contracts provider or payment fees. Because definitions differ, always check which deductions an NGR figure includes.
Can GGR be negative?
Yes. If players win more than they stake in a period, GGR is negative. It happens most often in sportsbooks after favourable results for bettors, and in casinos after large jackpot wins. That is why buyers look at 12 months or more rather than a single month.
Is gaming tax charged on GGR or on stakes?
It depends on the market. Many markets tax GGR, some tax GGR after bonuses, and some tax stakes (turnover). A turnover tax can cost more than the operator's entire GGR, so the tax base matters as much as the rate.
Which revenue figure is used to value an online casino?
Usually trailing 12-month NGR, multiplied by a multiple set mainly by the licence, and cross-checked against EBITDA. Buyers recalculate NGR on their own definition and reconcile it with platform reports and bank statements before agreeing a price.
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