What is NGR?
NGR stands for Net Gaming Revenue, which is defined as the gross bets total, less the payout from any transaction with a visitor, or in which a visitor is credited, less returns, bonuses and charge backs. Net Gaming Revenue is the basic profit of a casino, gambling establishment or online casino which is collected at the end of any financial month.
Net Gaming Revenue is seen as one of the most important figures by casinos and gaming establishments, allowing them to track their profit and loss, as well as key figures such as total payouts from winnings and total expenditure from offering new players welcome bonuses or no deposit bonuses.
The Net Gaming Revenue of a casino or gaming establishment will also be calculated minus any goods and services taxes, which is the tax which may be levied on all gaming supplies made by the casino operator.
Casinos’ Net Gaming Revenue is considered the biggest indicator of how the establishment is performing. For example, a recent report by the New Jersey Division of Gaming Enforcement has shown in 2016 that casinos in Atlantic City have collectively experienced a revenue increase for the first time in over 10 years.
Many of the large casinos have experienced some decrease in their Net Gaming Revenue in recent years, which has been put down to the increasing popularity of online gaming websites and the huge number of these online casinos which are now available to players. Online gaming websites have reported large increases in their revenue, which – for example, in New Jersey – saw an increase of over 32% in 2016, taking the total profit from $148.9 million in 2015 to $196.7 million one year later.
In some places, such as in the case of the Victoria Gate Super Casino in Leeds, England, casinos are required to pay a percentage of their Net Gaming Revenue to the city council.