If you are the proud owner of an online casino or a sports betting platform, one of your main goals - or maybe your main goal - should be to earn money and make profits. And, to know whether your business is generating revenue or causing you expenses, two of the key metrics you need to monitor closely are the Gross Gaming Revenue (GGR) and the Net Gaming Revenue (NGR).
Understanding how they work and the differences between them can be the key to success. Therefore, in this article, we will discuss what GGR and NGR really mean and how they affect your bottom line. Furthermore, we will analyze how your choice of software provider could boost both and dive deep into how these metrics work in the newly-regulated Brazilian market.
What is GGR (Gross Gaming Revenue)?
Gross Gaming Revenue (GGR) is the total player wagers minus the winnings paid out. It’s essentially the raw revenue generated before any costs are considered:
GGR = Total Bets - Total Wins
Don’t worry if you are not a math fan and get a little nervous just by looking at formulas and numbers, we’ll make this very simple for you to understand. If players wager R$ 30 million in one month on your platform and they win back R$ 27.6 million, your GGR is R$ 2.400,000.
GGR is commonly used by regulators and tax authorities because it's relatively easy to measure. But - and this is a big but - it doesn’t reflect actual profitability. Let’s see why in the next section.
What is NGR (Net Gaming Revenue)?
Net Gaming Revenue (NGR) takes things a step further by subtracting from the GGR all operational costs, such as:
- Bonuses and promotions.
- Affiliate commissions.
- Platform provider fees.
- Payment gateway charges.
- Regulatory fees and taxes.
So the formula for NGR is:
NGR = GGR - (Bonuses + Fees + Taxes + Commissions)
Let’s follow up our example. If your GGR is R$ 2.400,000, but your costs are:
Bonuses: R$ 150,000
Affiliates: R$ 100,000
Payment fees: R$ 20,000
Taxes: R$ 432,000 (in Brazil’s case)
In this case, your NGR is:
NGR = 2.400,000 (150,000 + 100,000 + 20,000 + 432,000) = R$ 1,698,000
In other words, NGR is your actual take-home revenue, the number that matters most to operators and investors alike.
Why Both Metrics Matter.
While GGR gets a lot of attention - especially from tax collectors -, NGR is the real MVP for owners of online casinos or sports betting platforms.
- GGR is great for market sizing and calculating taxes.
- NGR shows how efficient your business is at turning player activity into profit.
Operators should focus on maximizing NGR without compromising user experience - and that’s where strategy (and the software provider!) comes in.
Why Software Providers Matters (a Lot).
Your iGaming platform isn’t just a digital front - it’s your profit engine. And the right software provider can directly influence both GGR and NGR. Here’s how:
Optimized Game Mechanics.
Good software providers offer games with well-balanced RTPs (Return to Player), bonus volatility, and player engagement tools. This boosts retention and drives more wagering, which means higher GGR.
Advanced Bonus Engines.
A smart bonus engine lets you target rewards more efficiently. Better segmentation and personalized offers mean more active users with lower cost per conversion, which lifts NGR.
Affiliate & CRM Integrations.
CRM tools and affiliate tracking ensure you only reward performance. If your software provider includes AI or automation for campaign optimization, you’ll see significant cost savings over time.
Compliance and Reporting.
With Brazil’s detailed regulations, your platform should automate tax deductions, player verification (KYC), and reporting. This reduces fines, human error, and staff workload, which improves NGR.
Flexible Payment Gateways.
Software providers which offer multi-currency support (especially PIX in Brazil), low processing fees, and fraud prevention systems help to retain more revenue. A 2024 iGaming Business Brazil report showed that operators using localized platforms improved NGR margins by up to 18%, compared to global solutions lacking native support.
The Brazil Factor: How New Regulation Impacts GGR & NGR.
Now, if you are still reading this article - and we hope you are - you’re probably interested in how GGR and NGR work in Brazil’s newly-regulated iGaming market.
Brazil officially regulated sports betting and online casino games under Law No. 14,790/23, which was approved in December 2023 and is in effect since the beginning of this year. This law changed the revenue game for operators in the country, let’s see how:
Brazil’s iGaming Market at a Glance.
- According to the H2 Gambling Capital report “Global iGaming Forecast 2024”, Brazil’s iGaming market is estimated to reach R$ 22 billion in GGR by 2026.
- According to the Brazilian government, around 15% of Brazilians bet online regularly, which is over 23 million people.
- Brazil’s Ministry of Finance has set a minimum RTP of 85% for all licensed online casino games, but, in practice, actual RTPs are much higher, close to the 94% average range.
Brazil’s Taxation Model (as of July 2025).
- 18% tax on GGR (12% for federal + 6% for social security, tourism & public safety).
- Up to 30% tax on player winnings exceeding R$ 2,112/month.
- Annual license fees: R$ 30 million for five years.
- NGR is not used as a taxation basis - but it is critical for business viability.
Final Thoughts: Don't Just Count What You Earn, Count What You Keep.
In the iGaming industry, it’s easy to get hypnotized by big GGR numbers. However, the savvy operators focus on NGR, because that’s what pays the bills. In Brazil’s newly regulated landscape, there are high taxes, strong competition, and players expecting personalized experiences. Maximizing NGR, therefore, means:
- Choosing a smart platform.
- Cutting unnecessary costs.
- Delivering the best player experience.
- Choosing the right affiliates.
- Using bonus intelligently.
- Automating tax deductions, player verification (KYC), and reporting.
- Having flexible payment gateways.
Increase Your GGR and NGR with InPlaySoft.
InPlaySoft is a software provider that creates, delivers and maintains scalable, stable and fast-to-market iGaming platform solutions across casino and sportsbook. Our operators don’t want just big GGR numbers - and who doesn’t? -, they also want to maximize NGR numbers. If that’s also your goal, we can help you.
Our solutions include player acquisition and retention tools, a cloud-first approach for scalability, and stability like you have never seen before - we have 100% of uptime since our operations started in 2021 -, which will all contribute to increasing your GGR. We also offer smart bonus, payment and reporting tools which will make all the difference in your NGR.
