How NGR is calculated
NGR starts from GGR (the difference between the total wagered and the total paid out in prizes) and subtracts the costs directly tied to generating that revenue:
NGR = GGR − bonuses − affiliate commissions − payment fees − platform revenue share
A simplified example, with round numbers:
| Item | Amount |
|---|---|
| GGR for the month | R$ 100,000 |
| Bonuses granted | R$ 15,000 |
| Affiliate commissions | R$ 10,000 |
| Payment fees | R$ 5,000 |
| Platform revenue share | R$ 10,000 |
| NGR | R$ 60,000 |
In this example, R$ 40,000 of the GGR was consumed by costs directly tied to revenue, leaving R$ 60,000 of NGR — the figure that goes on to the calculation of taxes and general expenses before reaching the final margin.
Are GGR and NGR the same thing?
No. GGR shows the gross volume of the operation — the larger the base of active players and the total wagered, the higher the GGR. NGR, on the other hand, shows efficiency: a high GGR paired with a low NGR indicates that the operation is spending too much on bonuses, commissions, or fees to sustain that volume. It is NGR, not GGR, that comes closest to what the operator actually keeps before taxes.
Why NGR matters to the operator
NGR is the reference most used to assess the financial health of a betting operation, because it removes from the equation the costs that vary in proportion to revenue. In the white-label model, the platform's revenue share is usually calculated precisely on this kind of base, and NGR is also the starting point for estimating break-even: it must cover the fixed monthly costs, the taxes, and the acquisition cost amortized over the player's lifetime (LTV).
NGR and taxation in Brazil
In Brazil, since the regulation brought in by Law No. 14,790/2023, betting operations are subject to taxation on gaming revenue. Because the rate falls on that revenue and not on profit, the path from GGR to NGR to final margin is what determines whether the operation is sustainable — cutting the costs that erode NGR (poorly targeted bonuses, high payment fees, uncontrolled commissions) has a direct impact on the margin left after taxes.