GGR vs NGR: Why Gambling Turnover Is Not Revenue or Profit

The safest way to read an operator result, supplier agreement or affiliate report is to stop at each line of the waterfall. Ask what went in, what came out, and which deductions the company chose to include.

A one-million illustrative example

The figures below are invented to explain the arithmetic. They do not describe a real operator.

The check is simple: 1,000,000 minus 940,000 equals 60,000 GGR. The selected deductions total 20,000, leaving 40,000 NGR.

That 40,000 is not net income. Payroll, technology, rent, licensing, customer service, compliance, marketing and other costs may still sit below it. In another contract, some of those deductions may be absent or replaced by different ones.

Turnover measures activity, not earnings

Turnover can become very large because the same customer balance may be wagered repeatedly. A player can stake 20, win 18, and use part of that return again. Both wagers add to turnover even though the operator did not receive a fresh deposit for each one.

That makes turnover useful for questions about activity and scale. It is a poor substitute for retained revenue. A company reporting a large betting handle has not said how much it kept unless it also supplies a hold or revenue measure and explains the period and product.

What GGR usually captures

In a simple house-banked game, GGR is commonly described as stakes minus winnings. The measure sits before many costs of running the business. A negative figure is possible when winnings exceed stakes in a period.

The exact label matters. The UK Gambling Commission asks licensees for gross gambling yield, or GGY, and explicitly tells them not to submit GGR instead. Its formula is A plus B minus C: stakes paid to the licensee, plus certain other amounts accruing directly from the gambling activity, minus prizes or winnings. The guidance also specifies how qualifying cash-equivalent bonuses and loyalty payments are treated. UK Gambling Commission, GGY reporting guidance

That is why GGR and GGY should not be treated as interchangeable in every context. They can look similar in a simplified calculation, but one may be a company’s non-GAAP metric while the other is a regulatory return defined for a particular jurisdiction.

Why NGR moves under your feet

NGR sounds precise because it contains the word “net.” In practice, it depends on the document. One agreement may subtract bonuses, taxes, payment charges, jackpot contributions, chargebacks and platform fees. Another may use fewer categories. A supplier and an operator can also calculate from different scopes or data sources.

The list of deductions is therefore part of the number. If a company reports NGR without a reconciliation, the reader cannot safely compare it with another company’s NGR. Even within one group, a changed definition can move the line without any change in customer activity.

Affiliate contracts make the issue concrete. Their commission may be a percentage of an NGR definition written by the operator. Negative carryover, administrative fees, bonus treatment and taxes can all affect the amount on which the share is calculated. The branded name of the metric is less useful than the clause that defines it.

The percentage needs a defined revenue base

A reported NGR figure can leave a tax below the line. In its 2025 annual report overview, Entain defines NGR as "Net Revenue before charging for VAT and Sales Taxes." It calls this a non-GAAP measure and directs readers to an income-statement reconciliation. The definition is specific to that reporting context.

VAT and sales taxes are the categories named in Entain's footnote. They should not be silently substituted for the gambling-tax deduction in our example. The illustrative 40,000 NGR above follows an invented contract, not Entain's reporting policy. Using the company's label does not import its definition into a supplier agreement.

The choice of base also changes a fee without changing its percentage. For an explicitly fictional 20% charge on the example above, 60,000 GGR produces a 12,000 fee; 40,000 NGR produces an 8,000 fee. The 4,000 difference comes from the base. These charges are arithmetic illustrations, not terms quoted from Entain or a real vendor.

Before applying a percentage, identify the clause defining the base and match its deductions to the underlying records. A company's published NGR and the NGR on a commercial invoice need separate checks even when both documents use the same initials.

Follow one named sports definition

Entain's 2025 financial statements, glossary page 253, define Sports Gross Win Margin as sports wagers less payouts. Sports NGR then deducts free bets and promotional bonuses. That supplies a specific basis for the next example, rather than borrowing the deductions in our invented contract above.

Assume a fictional month with £1,000 of settled wagers and £880 of payouts compiled on that sports basis. Inside the payout total are £240 of winning stakes returned and £640 of profit paid to customers. The promotional reporting adjustment is stipulated at £20; it is not calculated from a customer's displayed bonus balance. There are no open bets, fee receipts or other fair-value adjustments in this example.

The £240 is already inside the £880. Deducting it again would turn a £120 gross win into minus £120. A winning stake returned with a payout is part of the full credit in our settlement example, too; it is not a second expense to subtract from the same credit.

Now assume £7 of betting duty and £3 of payment-processing costs, setting VAT/GST to zero solely for this cost illustration. Other costs remain unmodelled. These are assumed bills, not quoted tax rates or Entain expenses. The £100 Sports NGR stays £100 under the cited definition; £90 remains after those two costs. That limited subtotal is not profit. No jackpot transaction is assumed; a casino pool would need its own settlement and contribution terms.

The reported VAT bridge is a different calculation

Entain's consolidated income statement, printed page 183, reports the following for the year ended 31 December 2025. All amounts are £ million and relate to the Group's continuing operations.

The £66.0 million is the statement's VAT/GST line. Its cost-of-sales policy, printed page 195, puts gaming duties and payment-processing fees in cost of sales, alongside specified third-party charges. Those charges sit below revenue in that presentation. Administrative expenses then follow gross profit.

These are reported Group totals for 2025, separate from the fictional sports month. Neither calculation changes the definition of NGR in somebody else's supplier or affiliate contract.

GGR is not cash in the bank

Revenue recognition and cash movement are different questions. A deposit increases money held in or for a player account, but it is not necessarily gambling revenue. A bet changes the account position. A win creates an amount owed to the customer. Withdrawals settle balances.

The accounting presentation depends on the product and applicable rules. Sportsbook, casino, poker and exchange models can also have different economics. An exchange may earn commission for facilitating bets between customers rather than taking the same principal position as a sportsbook.

A reading checklist for company results

Before comparing two numbers, record:

• the exact metric name and the company’s definition;

• the product, geography and reporting period;

• whether the figure includes free bets, bonuses, taxes or jackpot costs;

• whether it is gross or net of supplier revenue shares;

• the currency and whether conversions affected the comparison;

• whether the figure is reported, adjusted, estimated or illustrative.

The same discipline applies to market statistics. The American Gaming Association calls its tracked figures “commercial gaming revenue” and publishes the products and jurisdictions included. AGA State of the States 2026 The UK regulator publishes GGY for Great Britain and excludes Northern Ireland from GB-only returns. Combining the two without their labels would create a number that looks comparable but is not.

Where profit begins

Profit requires a fuller income statement. After a gross or net gaming measure, a business may still have cost of sales, staff, marketing, professional fees, depreciation, interest and tax. EBITDA removes some items by design. Operating profit and net income answer still different questions.

The practical hierarchy is:

1. Turnover tells you how much was wagered.

2. GGR or a defined regulatory yield tells you what remained after winnings under that definition.

3. NGR tells you what remained after an additional, document-specific set of deductions.

4. Profit tells you what remained after the relevant business costs and accounting treatments.

The line names are a starting point. The definitions and reconciliation decide what they actually mean.