GGR Deductions
GGR deductions are the operator costs subtracted from gross gaming revenue to calculate net gaming revenue (NGR), which forms the basis for RevShare affiliate commission payments.
What it means in practice
GGR deductions are the specific cost categories that operators subtract from Gross Gaming Revenue (GGR) to arrive at Net Gaming Revenue (NGR). Since most iGaming affiliate programs calculate RevShare commissions on NGR rather than GGR, the types and amounts of deductions directly determine how much affiliates actually earn. Understanding what gets deducted and whether those deductions are fair is one of the most important factors in evaluating an affiliate program.
Common GGR deductions include payment processing fees (typically 2-5% of deposits), gaming tax obligations (varies by jurisdiction, from 0% in Curacao to 21% under UKGC), game provider royalties (10-15% of GGR for third-party content), bonus costs (deposit matches, free spins, cashback), chargeback losses, platform licensing fees, and sometimes a general administrative fee. Each deduction reduces the NGR base on which RevShare commissions are calculated.
The fairness of GGR deductions is a persistent tension in iGaming affiliate marketing. Operators who load excessive deductions onto the NGR calculation effectively reduce their RevShare rate below the headline percentage. An operator offering 40% RevShare with aggressive deductions may pay less than one offering 30% RevShare with minimal deductions. Sophisticated affiliates compare revenue share deductions across programs to identify the true effective commission rate.
Transparency in deduction reporting is a key indicator of program quality. Operators who provide itemized deduction breakdowns in their affiliate dashboard earn greater affiliate trust than those who report only the final NGR figure. Clear deduction visibility also simplifies revenue reconciliation and reduces disputes during the payout cycle.
How GGR Deductions works across industries
See how ggr deductions is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 supports configurable deduction categories per product vertical, allowing operators to define transparent GGR-to-NGR calculations. The commission engine applies deductions automatically and displays itemized breakdowns in affiliate reports, supporting accurate RevShare calculations.
Frequently Asked Questions
Common questions about ggr deductions, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
Common deductions include payment processing fees (2-5%), gaming taxes (varies by jurisdiction), game provider royalties (10-15%), bonus costs (deposit matches, free spins, cashback), chargeback losses, and platform fees. Each deduction reduces the NGR base used to calculate RevShare affiliate commissions.
Related Terms
GGR (Gross Gaming Revenue)
GGR is the total amount wagered by players minus the total amount paid out as winnings. It represents the raw revenue an iGaming operator earns from player activity before any deductions for bonuses, taxes, or operational costs.
NGR (Net Gaming Revenue)
NGR is the revenue that remains after an operator deducts costs such as bonuses, taxes, and platform fees from GGR. It is a common base for RevShare calculations in iGaming affiliate programs.
GGR vs NGR
GGR is wagers minus winnings. NGR deducts bonuses, taxes, and fees from GGR. The difference impacts affiliate RevShare payouts by 30-50%.
Revenue Share Deductions
Revenue share deductions are costs subtracted from gross revenue before calculating an affiliate's RevShare payout, including bonuses, taxes, fees, and chargebacks.
RevShare (Revenue Share)
RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.
Negative Carryover
Negative carryover is a policy where a negative revenue balance from one period is rolled into the next period and offsets future affiliate earnings before new commissions are paid out.
Casino Hold Percentage
The casino hold percentage is the proportion of player wagers that the casino retains as revenue over time. It reflects the mathematical advantage built into casino games and directly determines how much GGR an operator generates from player betting activity.
Continue Learning
Free structured courses that cover this topic and more.
Setting Up an iGaming Affiliate Program
iGaming affiliate program setup. GGR vs. NGR, player tracking, MGA/UKGC/Curacao compliance, and how to scale.
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How to build and manage casino affiliate programs. Covers RevShare, NGR, player attribution, fraud prevention, and multi-brand operations.
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