NGR Calculation and Player Quality Scoring
Net gaming revenue is the number that determines whether an iGaming affiliate program is profitable. GGR tells you how much players lost in total; NGR tells you how much the operator actually kept after bonuses, payment fees, chargebacks, and taxes. Affiliates paid on RevShare receive a percentage of NGR -- which means the calculation methodology directly affects how much they earn.
The NGR Formula
NGR starts with gross gaming revenue -- total player losses (wagers minus wins) -- and subtracts all the costs of running the game. The result is the revenue base for RevShare commission calculations.
| Component | Direction | Typical Impact |
|---|---|---|
| Gross gaming revenue (GGR) | Positive | Total player losses |
| Bonus cost | Negative | 15--30% of GGR in competitive markets |
| Payment processing fees | Negative | 1--3% of deposit volume |
| Chargebacks | Negative | 0.1--1% of transaction volume |
| Jackpot contributions | Negative | 0.5--2% of GGR (jackpot games only) |
| Taxes (where applicable) | Negative | Varies by jurisdiction |
| Net gaming revenue (NGR) | Result | GGR minus all deductions |
Why Bonus Costs Dominate NGR Variance
In competitive markets like the UK, bonus costs can consume 25--35% of GGR. An affiliate sending players who claim large welcome bonuses and then withdraw creates negative NGR -- the operator loses money on acquisition even before counting the RevShare commission. This is the core problem the iGaming industry refers to as "bonus abuse."
Some operators apply a negative NGR carryover: if an affiliate's players generate negative NGR in one month (because bonuses exceeded GGR), that deficit carries forward into the next month before the affiliate earns RevShare. Others cap the negative at zero and reset monthly. Be explicit about your policy -- it is a frequent source of affiliate disputes.
Negative NGR carryover policies must be clearly documented in your affiliate terms. If a high-volume affiliate discovers their carryover months after signing up, you risk losing the relationship entirely. Publish the policy in plain language at onboarding, not buried in a terms appendix.
Player Quality Scoring Models
A player quality score aggregates multiple behavioral signals into a single number per affiliate. Operators use quality scores to identify which affiliates consistently send profitable players vs. which send high volumes of low-value traffic. The score becomes the basis for commission tier decisions and program reviews.
- Revenue yield score: NGR per player / average NGR per player across all affiliates. A score above 1.0 means the affiliate's players outperform the program average.
- Retention score: D90 retention rate relative to program average. Affiliates above average retention earn bonus RevShare in some program structures.
- Bonus utilization score: bonus cost as a percentage of GGR per affiliate. High bonus utilization indicates the affiliate attracts bonus-driven players.
- Chargeback score: chargebacks per 100 FTDs. Affiliates above 1.5 chargebacks per 100 FTDs warrant investigation.
- Composite quality score: weighted average of the above, adjusted quarterly.
Using Quality Scores in Commission Decisions
Quality scores translate directly into commission structure decisions. A top-quality affiliate (composite score 1.2+, D90 retention above average, minimal bonus abuse) earns a premium RevShare rate or a hybrid CPA/RevShare deal. A low-quality affiliate (score below 0.8, high bonus utilization) gets flagged for review or moved to a lower RevShare tier.
Run your first player quality report after 90 days of data per affiliate cohort. Affiliates need at least 50 FTDs before their quality score is statistically meaningful. Avoid making commission changes based on fewer FTDs -- small sample sizes produce misleading scores.
Key Takeaways
- NGR = GGR minus bonus costs, payment fees, chargebacks, and applicable taxes. It is the actual revenue base for RevShare calculations.
- Bonus costs are the largest variable in NGR -- affiliates sending bonus-driven players can generate negative NGR even at high FTD volumes.
- Negative NGR carryover policies must be documented clearly at onboarding to prevent disputes.
- Player quality scores combine revenue yield, D90 retention, bonus utilization, and chargeback rates into a per-affiliate assessment.
- Quality scores should only be acted on after 90+ days and 50+ FTDs per affiliate -- smaller samples produce unreliable signals.
Explore Further
Key terms and tools related to this lesson. Deepen your understanding and see how Track360 supports these concepts.
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.
Chargeback
A chargeback is a forced transaction reversal initiated by a customer's bank or payment provider, which can claw back revenue and reverse affiliate commissions already paid.
Casino Affiliate Tracking
Casino affiliate tracking is the process of attributing player registrations, deposits, and gaming activity to the affiliate who referred them, forming the basis for commission calculation.
Affiliate Manager
An affiliate manager is the operator-side role responsible for recruiting, onboarding, managing, and optimizing affiliate partnerships within a partner program.