Publication date: 14 Jun 2023
Gross Gaming Revenue (GGR) is the amount of revenue an organization earns before deducting mandatory fees, costs of a variety of bonus programs to attract players, organizational and other expenses.
Sometimes GGR can reach truly astonishing figures. According to the latest figures from the European Gambling and Betting Association (EGBA), Europe’s Gross Gaming Revenue should reach €126.3bn by 2026. Analysts claim that a sustained period of growth in gambling revenues has begun from 2022. The main growth factor is said to be the increase in revenue from the online betting sector, the share of which is expected to grow to 61% of the total gambling market in the coming years.
How is Gross Gaming Revenue calculated?
The formula for GGR is: GGR = A – B (where “A” is the sum of all bets placed by players and “B” is the winnings paid out).
For example, in one year the players of an abstract online casino have staked $4m and won $2m.
Thus, value A = 4,000,000; B = 2,000,000.
GGR = 4,000,000 – 2,000,000 = 2,000,000.
Pros of GGR:
- Allows you to assess the financial performance of the casino;
- Enables you to compare the revenues of different casinos with each other;
- Helps to determine which games are more profitable.
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