Running into some confusion with our monthly reports. Our platform shows GGR at around €340K last month, but when I calculate what we actually kept after bonuses, provider fees, and payment processing costs, we're sitting at maybe €28K. Is this normal? The discrepancy seems massive and I'm wondering if I'm calculating NGR wrong or if our promotional spend is just destroying margins. Anyone dealt with this before?
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Yeah that's pretty typical actually, especially if you're running aggressive welcome bonuses. GGR is just wagers minus payouts - it doesn't account for ANY of your actual operating costs. Your NGR is what matters for real profitability. What's your bonus abuse rate looking like? Because if you're seeing lots of low-quality traffic that's just bonus hunting, that'll tank your NGR even if GGR looks healthy on paper. Also factor in chargebacks - those come out of NGR too.
I think you might be confusing GGR with RTP? See this mistake all the time. RTP is the theoretical payout percentage set by the game provider (like 96%), but GGR is the actual money you kept from all bets after paying winners. They're related but NOT the same thing. Your GGR can fluctuate month to month even with fixed RTP games depending on player luck. If someone hits a massive progressive, your GGR tanks that month but your RTP hasn't changed.
Hold on, €340K GGR down to €28K NGR is only about 8% margin. That's actually on the lower end but not disaster territory if you're scaling. What jurisdiction are you licensed in? Because tax structures vary wildly - Curacao vs MGA makes a huge difference in what eats into your NGR. Also are you counting payment provider fees correctly? Some operators forget to include withdrawal fees and currency conversion losses which can be another 3-4% right there.