NGR is calculated differently in casinos and sportsbooks, and non-transparent deductions can consume up to 30-50% of an affiliate’s revenue. N1 Partners experts explain how NGR calculations work.

What Is NGR?

NGR (Net Gaming Revenue) is the net revenue a casino or sportsbook earns from players referred by an affiliate after all expenses have been deducted, including winnings, bonuses, taxes, payment processing fees, and administrative fees. When an affiliate works on a RevShare basis, their commission = NGR × RS percentage.

NGR Formula:

NGR = GGR - (bonuses + taxes + payment processing fees + provider fees + administrative fees)

GGR (Gross Gaming Revenue) = total bets - total winnings

When an administrative fee is deducted from GGR before bonuses, the commission will be lower than when it is deducted afterward. It is important to ask your manager exactly where the admin fee is deducted.

N1 Partners is a reliable affiliate program and direct advertiser that has offered leading brands and high commissions for more than 8 years. N1 Partners has no hidden fees, and its NGR calculation is fully transparent.

How NGR Is Calculated in Casino Affiliate Programs

In casinos, NGR is calculated using the formula above. The deductions include bonuses based on their effective rather than nominal cost, payment processing fees, provider fees, taxes, and an administrative fee.

Calculation Example:

GGR = (Bets €5,000 - Winnings €4,400) = €600

NGR = GGR €600 - (bonuses €60 + taxes €120 + payment processing fees €24 + provider fees €90) = €306

RevShare 35% = €107.10

N1 Partners managers provide affiliates with complete information about the products in a portfolio of more than 14 brands, including casinos with high LTV, strong conversion rates, and Reg2Dep.

How NGR Is Calculated in Sports Betting Affiliate Programs

In sportsbooks, NGR calculation is more complex because of the specifics of sports betting. The basis is net hold, which is the sportsbook’s net profit from bets. Costs for odds feed providers and risk management may be structured differently. Payouts are made only on settled outcomes to avoid reversals when events are canceled.

Sports Betting Calculation Formula

GGR = total amount wagered - winnings paid out on settled events

The deductions include bonuses such as free bets and insurance, payment processing fees, odds feed and risk management fees, taxes, and administrative fees.

In sports betting, GGR is more volatile than in casinos. A large player win on a single event can make NGR negative for the month.

N1 Partners works with CPA, RevShare, Hybrid, and Spend Model arrangements. For sports betting, the Spend Model, which pays commission on turnover, is beneficial because it does not depend on the volatility of player wins and losses. Top affiliates can access CPA commissions of up to €700 and RevShare of up to 55%.

LTV, Retention, and the NGR/GGR Ratio

In addition to NGR, operators track several related metrics that affect revenue:

The NGR/GGR ratio shows how much gross revenue is converted into net profit. On average, NGR accounts for 30-60% of GGR. A low ratio below 30% indicates inefficiency.

LTV is the total NGR a player generates throughout their entire period of activity. In online casinos, the average player LTV is $300-$1,200, while players from affiliate traffic have an LTV that is 10-20% higher.

Retention shows how long players remain active. High retention is critical for RevShare. N1 Partners provides data-driven support through daily analytics and expert recommendations, helping affiliates improve their strategies effectively.

NGR calculation is the foundation of revenue under the RevShare model. NGR is calculated differently in casinos and sports betting: casinos use GGR and standard deductions, while sports betting uses net hold and settled outcomes.

Top N1 Partners affiliates can access individual terms and flexible payment schedules upon request and with manager approval. Join N1 Partners and work with transparent NGR calculations.