If you are the proud owner of an online casino or a sports betting platform, one of your main goals — or perhaps your ultimate goal — should be to make money and generate profit. And to know whether your business is generating revenue or expenses, two of the key metrics you need to closely monitor are Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR).
Understanding how they work and the differences between them can be the key to success. Therefore, in this article, InPlaySoft will discuss what GGR and NGR really mean and how these metrics affect your financial outcomes. Additionally, we’ll explore how the choice of software provider can boost both metrics and delve into how they operate in the newly regulated Brazilian market.
What is GGR (Gross Gaming Revenue)?
Gross Gaming Revenue (GGR) is the total amount wagered by players minus the winnings paid out. It is essentially the gross revenue generated before any costs are considered:
GGR = Total Bets - Total Winnings
Don’t worry if you’re not a math fan and formulas make you a bit nervous — we’ll simplify it for you. If players bet R$30 million in a month on your platform and win back R$27.6 million, your GGR would be 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 does not reflect real profitability. Let’s see why in the next section.
What is NGR (Net Gaming Revenue)?
Net Gaming Revenue (NGR) goes a step further by subtracting all operating costs from the GGR, such as:
* Bonuses and promotions;
* Affiliate commissions;
* Platform provider fees;
* Payment gateway fees;
* Regulatory fees and taxes.
Thus, the formula for NGR is:
NGR = GGR - (bonuses + fees + taxes + commissions)
Let’s continue with 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 the case of Brazil)
In this case, your NGR would be:
NGR = R$2,400,000 - (R$150,000 + R$100,000 + R$20,000 + R$432,000) = R$1,698,000
In other words, NGR is your actual net revenue, the number that truly matters to operators and investors.
Why both metrics are important
Although GGR gets a lot of attention — especially from tax collectors — NGR is the real MVP for online casino or sports betting platform owners.
* GGR is great for sizing the market and calculating taxes.
* NGR shows how efficiently your business converts player activity into profit.
Operators should focus on maximizing NGR without compromising the user experience — and that’s where strategy (and your software provider!) come into play.
Why software providers matter (a lot)
Your iGaming platform is 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 generates more bets, leading to higher GGR.
Advanced bonus mechanisms
A smart bonus engine allows you to target rewards more efficiently. Better segmentation and personalized offers mean more active users at a lower cost per conversion — which increases NGR.
Affiliate and 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 must automate tax deductions, player verification (KYC), and reporting. This reduces fines, human errors, and team workload — all of which improve NGR.
Flexible payment methods
Software providers that support multiple currencies (especially Pix in Brazil), low processing fees, and fraud prevention systems help you retain more revenue. A 2024 report from iGaming Business Brasil showed that operators using localized platforms improved net profit margins by up to 18% compared to global solutions without native support.
How Brazil’s new regulation impacts GGR and NGR in the country
If you’re still reading this article — and we hope you are — you’re probably interested in how GGR and NGR work within Brazil’s newly regulated iGaming market.
Brazil officially regulated sports betting and online casino games through Law No. 14.790/23, approved in December 2023 and in effect since early this year. This law changed the revenue landscape for operators in the country. Here’s how:
The Brazilian iGaming market at a glance
* According to the "Global iGaming Forecast 2024" by H2 Gambling Capital, Brazil’s iGaming market is expected to reach R$22 billion in GGR by 2026.
* The Brazilian government reports that about 15% of Brazilians bet online regularly, representing more than 23 million people.
* The Brazilian Ministry of Finance set a minimum RTP of 85% for all licensed online casino games, but in practice, actual RTPs are much higher, averaging around 94%.
Brazil’s tax model (as of July 2025)
* 18% tax on GGR (12% to the federal government + 6% for social security, tourism, and public safety).
* Up to 30% tax on player winnings exceeding R$2,112 per month.
* Annual licensing fees: R$30 million for five years.
* While GGR is not used directly as the tax base, it remains crucial for business viability.
Final thoughts: Don’t just count what you earn, count what you profit
In the iGaming industry, it’s easy to get carried away by big GGR numbers. However, experienced operators focus on NGR because that’s what pays the bills. In Brazil’s newly regulated environment, there are high taxes, intense competition, and players who expect personalized experiences. Maximizing NGR therefore means:
* Choosing a smart platform.
* Cutting unnecessary costs.
* Offering the best player experience.
* Choosing the right affiliates.
* Using bonuses wisely.
* Automating tax deductions, player verification (KYC), and reporting.
* Having flexible payment methods.
Boost your GGR and NGR with InPlaySoft
InPlaySoft is a software provider that builds, delivers, and maintains scalable, stable, and fast-to-market iGaming platform solutions for casinos and sports betting operators. Our clients don’t just want big GGR numbers — though who doesn’t? They also want to maximize their NGR. If that’s your goal too, we can help.
Our solutions include player acquisition and retention tools, a cloud-focused scalability approach, and stability like you’ve never seen before — we’ve had 100% uptime since we started operations in 2021 — which will contribute to increasing your GGR. We also offer smart tools for bonuses, payments, and reporting that will make all the difference to your NGR.
Want to know more? Visit the InPlaySoft website here!
Source: InPlaySoft
