GGR and NGR in Casinos: The Main Profitability Indicators

In the gambling field, these 2 terms are often used to describe the financial performance of a project. These concepts are important for both the casino’s team and investors to track the overall income generated by the start-up.

GGR stands for Gross Gaming Revenue, while NGR stands for Net Gaming Revenue. In this article, 2WinPower experts will delve deeper into these terms and explore their significance in the entertainment industry.

Casino GGR: The Essence of the Concept

Gross Gaming Revenue is the total amount of money that a project makes from all the titles it offers before deducting any expenses. GGR is calculated by adding up all the bets placed by users and subtracting the payouts.

What is GGR casino indicator? Let us look at a specific example. If a gambler spends $15 on a slot machine and wins $10, the rate for that particular title is $5 ($15 deposit minus $10). The Gross Gaming Revenue for the entire casino is the sum of all the GGRs for each product.

This is an essential metric for project management. It helps the operator understand how much money is being generated by the site. GGR meaning also lies in tracking the performance of each game, allowing the start-up’s owners to make decisions on which titles to keep and which solutions to replace.

Check out the top 10 projects in the world in terms of Gross Gaming Revenue:

The Venetian Macao

Macao, China

$6.7 billion

City of Dreams

Macao, China

$4.6 billion

Wynn Palace

Macao, China

$4.4 billion

Galaxy Macau

Macao, China

$4.2 billion

Las Vegas Sands Corp (Venetian and Palazzo)

Las Vegas, USA

$3.3 billion

MGM Resorts International (MGM Macau)

Macao, China

$3.2 billion

Marina Bay Sands

Singapore

$2.8 billion

Wynn Resorts (Wynn Las Vegas and Encore)

Las Vegas, USA

$2.6 billion

Caesars Entertainment (Caesars Palace)

Las Vegas, USA

$2.5 billion

Crown Resorts (Crown Melbourne and Perth)

Australia

$2.2 billion

Casino NGR: The Definition of the Term

Net Gaming Revenue is the amount of money that a project earns after deducting all the expenses associated with running the start-up. These costs include staff salaries, rent, utilities, marketing, and other charges.

The NGR casino rate is calculated by subtracting the total expenses from the GGR. For example, if the overall sum is $10 million and incurs expenses of $8 million, Net Gaming Revenue is $2 million.

NGR meaning is crucial for the casino’s investors as it helps them understand how profitable the start-up is. It also allows stakeholders to compare the performance of different projects and make the right financial decisions.

NGR and GGR: Figures and Facts

Consider some interesting statistics:

1. In 2019, the total Gross Gaming Revenue in the United States was $43.6 billion.
2. Slot machines are the most popular casino solution, generating the highest GGR. In 2019, they accounted for 67% of the total Gross Gaming Revenue in the US.
3. According to Statista, the global gambling market size was valued at $159 billion in 2020. It is expected to reach $200 billion by 2026.
4. The casino field is highly regulated. Establishments are required to pay taxes on their GGR. In the United States, projects paid a total of $10.2 billion as deductions in 2019.
5. Macao, a special administrative region of China, is the world's largest gambling market. In 2019, the total GGR of local casinos was $36.5 billion, according to the Gaming Inspection and Coordination Bureau.
6. The COVID-19 pandemic had a significant impact on the entertainment field. The overall Gross Gaming Revenue in the US decreased by 31% in 2020 compared to 2019.

The Main Things about NGR and GGR Meaning in Casino Start-Ups

The considered indicators are of the utmost importance for determining the efficiency and profitability of entertainment businesses. What is casino NGR? What is the essence of GGR?

Here are a few important things to know about these concepts:

• Gross Gaming Revenue is the total amount that a site makes from all the titles it offers before deducting any expenses.
• GGR helps casino owners understand how much money is being generated by their start-ups and track the performance of each product.
• Net Gaming Revenue is the total sum of bets placed by customers minus the amount paid out as winnings, as well as bonuses, fees, and other expenses.