Definition
Gross Gaming Revenue (GGR)
Also known as GGR, Gross Win, Gaming Yield
By Abhinav VasudevanReviewed Editorial policy
In short
GGR is total amount wagered minus total winnings paid out. The operator's revenue before costs. It is the figure most gambling taxes and licence fees are calculated on.
GGR is the industry’s basic revenue measure: amount wagered minus amount won by players. If a sportsbook takes £10 million in bets and pays out £9.2 million, GGR is £800,000.
It is not profit. Marketing, bonuses, staff, technology, payment processing and tax all come out of it afterwards.
Why it is the number regulators use
Most gambling tax regimes are levied on GGR rather than on turnover or profit, because it is hard to manipulate and simple to audit. Both sides of the calculation are recorded transactions.
This has a practical consequence for players. In markets where tax is charged on GGR at a high rate, operators compensate by tightening prices or reducing promotional spend. Comparing bonus generosity across jurisdictions usually tells you more about the local tax rate than about the operator.
GGR versus NGR
Net gaming revenue takes GGR and subtracts the cost of bonuses, free bets and sometimes payment processing. NGR is closer to what the business actually earns; GGR is what it is taxed on.
The gap between the two is a useful signal. An operator whose NGR is far below its GGR is spending heavily on promotions to acquire customers, which is normal for a new market entrant and unsustainable indefinitely.
Common questions
Is GGR the same as profit?
No. GGR is wagers minus winnings paid out, before marketing, bonuses, staff, technology, payment processing and tax. An operator can post healthy GGR while losing money on every customer it acquires.
Why do regulators tax GGR rather than profit?
Because both sides of the calculation are recorded transactions, which makes it hard to manipulate and simple to audit. The consequence for players is that high-tax markets tend to have tighter prices and less generous promotions.