CalculatorUpdated May 2026

GGR to NGR Calculator: Net Gaming Revenue Breakdown

Walk an iGaming operator's revenue waterfall from total bets through gross gaming revenue down to net gaming revenue, with bonus, jackpot, gaming tax, and acquirer-fee deductions.

Adjust handle, hold rate, bonus cost, jackpot contribution, gaming tax, and acquirer MDR. The waterfall recomputes live and shows what percentage of your gross becomes net.

Your inputs

Revenue waterfall

Handle (total bets)€100,000,000
GGR (Handle × Hold)€4,000,000100%
− Bonus cost (% of GGR)-€800,00020%
After bonus cost€3,200,00080.0%
− Jackpot contribution (% of GGR)-€80,0002%
After jackpot contribution€3,120,00078.0%
− Gaming tax / GGR levy (%)-€840,00021%
After gaming tax€2,280,00057.0%
− Responsible gambling levy (%)-€20,0000.5%
After responsible-gambling levy€2,260,00056.5%
− Acquirer MDR (%)-€1,250,00031.3% % of GGR
NGR (net gaming revenue)€1,010,00025.3%
NGR margin on handle
1.01%
NGR as % of GGR
25.3%

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Methodology & sources

Standard iGaming revenue waterfall: Handle × Hold rate = GGR. GGR − Bonus cost − Jackpot contribution − Gaming tax − Responsible-gambling levy − Acquirer MDR = NGR.

Hold rate is the inverse of theoretical Return-to-Player. UKGC, MGA, and most EU regulators set RTP floors per game type (typically 90-95% for slots, 98%+ for blackjack, etc.). Sports betting has a margin/overround model; poker uses rake percentage capped per pot.

Bonus cost includes welcome bonuses, free spins, cashback, loyalty rewards, and reload bonuses. Realised cost (vs gross) is lower because of bonus abuse controls and unredeemed bonuses, but gross is the right figure for revenue planning.

Gaming tax / GGR levy is the regulator's share. UKGC 21% remote gaming duty, MGA 5% gaming tax + 0.5% Player Protection Levy, Italy 25.5% online casino, Curaçao 0%. Germany is the outlier: it taxes 5.3% of stakes (turnover, not GGR) — the calculator handles GGR-rate inputs, so for Germany you would model the equivalent effective rate on GGR (often 30-50% of GGR equivalent at typical hold).

Acquirer MDR (Merchant Discount Rate) is charged on deposit volume, not handle. We approximate deposit volume as a percentage of handle (default 25%, typical range 15-30% — depending on player return rate and bonus reuse). High-risk acquirers charge 4-6% MDR plus per-transaction fees plus rolling reserve. The calculator simplifies this to a single MDR figure.

What this calculator doesn't model: seasonal volatility (sports betting events spike volume 10-50×), payment processing chargebacks (different from MDR), affiliate commissions (often 25-50% of NGR per affiliate share), platform software fees, customer-support headcount, and player loyalty cashback that pays out cumulatively. Use the result as a top-line gross-to-net comparison, not an operating P&L.

Frequently asked questions

What's the difference between Handle, GGR, and NGR?
Handle is the total amount wagered by all players. GGR (Gross Gaming Revenue) is what stays with the operator after paying out winnings — Handle × Hold rate. NGR (Net Gaming Revenue) is GGR minus all the costs that come out before any operator profit: bonuses, jackpot contributions, gaming taxes, regulator levies, and acquirer fees. NGR is the closest line to "revenue available to fund the business."
What's a typical hold rate?
Slots typically run 3-6% (so 94-97% theoretical RTP). Sports betting around 6-9% margin. Poker rake about 5%. Live casino similar to slots. The hold rate is set by game design and regulation — UKGC, MGA, and most regulated markets cap RTP floors (e.g. UKGC slots minimum 90%).
Why does the gaming tax come off GGR, not handle?
Because regulators tax what the operator keeps, not what passes through. UKGC remote gaming duty, MGA gaming tax, Italy 25.5% — all calculated on GGR. The exception is Germany, which taxes 5.3% on stakes (handle), and a few outliers — these have very different economics and significantly compress NGR.
What MDR rate should I use?
High-risk merchant accounts (iGaming, adult, forex) typically run 4-6% MDR on card deposits, sometimes higher with rolling reserve and chargeback fees. Crypto deposit rails are cheaper (1-2%) but have other operational costs. For SEO/realistic mid-size operator modelling, 5% is a good default. The acquirer-fee line is one of the largest operational costs after gaming tax.
Why is my NGR margin so thin?
iGaming margins are notoriously thin once you stack the deductions. A typical UKGC-licensed operator at 4% hold, 20% bonus, 21% gaming tax, 5% MDR ends up with NGR around 1.5-2% of handle. That's the structural reason scale matters in this industry — fixed costs (compliance, audit, platform) need spreading over enough handle to leave margin.

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Disclaimer

This calculator is for informational purposes only. It does not constitute legal, tax, or financial advice. Licence fees, tax rates, and regulatory requirements change. You must consult a qualified advisor in each relevant jurisdiction before making any commercial or investment decision. GetBanked and BMC Strategic Inc accept no liability for decisions made on the basis of these calculations.