How iGaming Revenue Models Work
Every affiliate commission in iGaming traces back to one number: how much revenue the operator actually keeps from player activity. That number is not as simple as it sounds. Two operators running identical games with identical player volumes can report very different revenue figures depending on how they define and calculate their revenue baseline.
Gross Gaming Revenue (GGR)
GGR is the starting point. It represents total player wagers minus total player winnings over a given period. If players wagered $500,000 and won $470,000, GGR is $30,000. This is the raw measure of what the house kept before any costs are deducted.
For casino products, GGR is driven by the house edge built into each game. Slots typically carry a 3-8% house edge, while table games like blackjack may sit at 1-2%. A high-volume slots player generates more GGR per dollar wagered than a blackjack player, which directly impacts how much commission an affiliate earns on that player.
Net Gaming Revenue (NGR)
NGR starts with GGR and subtracts operator costs before calculating affiliate commissions. The specific deductions vary by operator, but typically include bonuses, platform fees, payment processing costs, gaming taxes, and sometimes jackpot contributions. An operator with $30,000 GGR might report $18,000-$22,000 NGR depending on their cost structure.
| Deduction Type | Typical Range | Impact on NGR |
|---|---|---|
| Welcome bonuses | 10-25% of GGR | High -- front-loaded cost on new players |
| Platform/game fees | 8-15% of GGR | Consistent ongoing deduction |
| Payment processing | 2-5% of deposits | Varies by payment method mix |
| Gaming taxes | 5-25% of GGR | Jurisdiction-dependent, non-negotiable |
| Jackpot contributions | 1-3% of slot GGR | Only applies to progressive games |
Why the Difference Matters for Affiliates
A 30% RevShare on GGR and a 30% RevShare on NGR are fundamentally different deals. On $30,000 GGR, the affiliate earns $9,000. If NGR after deductions is $20,000, that same 30% yields $6,000. The percentage looks identical, but the payout differs by 33%. Affiliates who do not understand this distinction cannot accurately evaluate whether a deal is competitive.
Many affiliate programs advertise RevShare percentages without specifying whether the base is GGR or NGR. Always confirm the revenue base and which deductions apply before evaluating a deal.
Revenue Model by Product Type
Different iGaming products generate revenue in structurally different ways. Slots rely on high volume and house edge. Sportsbooks depend on margin and betting volume. Live dealer games combine elements of both. Each product type creates a distinct revenue profile that shapes how affiliate deals should be structured.
| Product | Revenue Driver | Typical Margin | RevShare Base |
|---|---|---|---|
| Slots | House edge x volume | 3-8% per spin cycle | GGR or NGR |
| Table Games | House edge x hands | 1-5% per hand | Usually NGR |
| Sportsbook | Margin x betting volume | 5-12% per market | GGR (often called "net win") |
| Live Dealer | House edge x sessions | 2-5% | NGR with studio fee deductions |
Key Takeaways
- GGR equals total wagers minus total winnings -- the raw revenue before any costs
- NGR subtracts bonuses, fees, taxes, and platform costs from GGR before commission calculation
- A 30% RevShare on GGR pays significantly more than 30% on NGR -- always confirm the base
- Different game types generate different margin profiles, affecting affiliate earnings per player
- Understanding the revenue model is the foundation for evaluating any iGaming affiliate deal
Explore Further
Key terms and tools related to this lesson. Deepen your understanding and see how Track360 supports these concepts.
Commission Structure
A commission structure defines how affiliates and partners earn payouts, including the model type, rate, conditions, and calculation method used by an operator.
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.
Affiliate Manager
An affiliate manager is the operator-side role responsible for recruiting, onboarding, managing, and optimizing affiliate partnerships within a partner program.