What is ‘Gross Gambling Yield’?
‘Gross Gambling Yield’ or GGY is a figure representing the income of the casino minus its payouts. For the player, it represents the amount held from gambling minus the amount spent on bets. The GGY figures are important when calculating tax for the operator or the player, depending on the laws surrounding hold.
‘Gross Gambling Yield’ Explained
Gross Gambling Yield, or GGY, is a basic look at what comes in and goes out of the casino – that is, the profits that are made directly from the bets, once payouts are accounted for. Gross gambling yield does not take into consideration the costs of the business – staff wages, restaurant and bar stock, advertising and similar expenses. It is the total of all money paid to the casino by players as bets, minus the payout made to those players as winnings. In many nations, the GGY figure is where taxes are paid, though expense allowances are made in other areas relating to profit and income tax for directors.
In nations where gambling winnings or ‘earnings’ are taxed, such as the United States, players will also need to know their own gross gambling yield, or overall profit. For players, the figure is slightly different. It represents the total of all winnings, minus the spend made to achieve those winnings. As long as this is a positive number, the player will be subject to taxes on that figure.
Gross gambling yield also appears when talking about the national economy – gambling is often responsible for a large chunk of a country’s income, especially in nations like the US and the UK where gambling is a national hobby. The nation’s entire spending on gambling, minus the payouts from gambling, make a value which is known as the national GGY. In 2015 for example, the UK’s gross gambling yield was calculated at £12.6 billion.