How the calculation works
Under revenue share, the provider does not charge a fixed amount for using the platform: it charges a slice of the revenue generated. The percentage is set in the contract and applied to a calculation base — and it is that base, more than the percentage itself, that determines how much the operator actually pays.
| Calculation base | What goes into the equation | Effect on the operator |
|---|---|---|
| On GGR | Total wagered minus prizes paid | The operator pays before deducting bonuses, affiliates, and payment fees — higher cost |
| On NGR | GGR minus bonuses, affiliate commissions, payment fees | The operator pays on what actually remained — lower cost |
An example: with a GGR of R$ 100,000 in the month and R$ 30,000 in bonuses, commissions, and fees, the NGR is R$ 70,000. A 20% revenue share on GGR costs R$ 20,000; the same 20% on NGR costs R$ 14,000. The percentage is identical — the R$ 6,000 difference comes solely from the base.
Revenue share or fixed fee
The two models shift the risk to opposite sides. Under revenue share, the provider only earns when the operation earns, which lowers the operator's cost in weak months and during the launch period, when there is no player base yet. In exchange, the cost grows alongside the operation's success and never goes away.
With a fixed fee, the cost is predictable and does not rise with growth — but it applies in full even when revenue is low, which weighs precisely on the most fragile phase of the business. Early-stage operations, with unpredictable revenue, tend to benefit from revenue share; mature operations, with high and stable volume, usually find the fixed fee more economical.
There are also hybrid models, with a minimum monthly fee plus a percentage, or with a tapering percentage that falls as revenue rises.
What to check before signing
Three points define the real cost of the contract and are frequently absent from the initial commercial proposal:
- Calculation base — whether the percentage falls on GGR or NGR, and exactly which deductions are accepted in the NGR.
- Monthly floor — whether the contract sets a minimum amount charged regardless of the month's revenue.
- Costs outside revenue share — payment gateway fees, setup, specific game providers, and add-on services that may be charged separately.
In the Brazilian market, regulated by Law No. 14,790/2023 and supervised by the SPA/Ministry of Finance, taxation falls on gaming revenue. That makes defining the calculation base even more relevant: the operator needs to know precisely what leaves revenue as tax and what leaves as revenue share before projecting the operation's margin.