What is ‘Proprietary GGY’?
‘Proprietary GGY’ is the share of GGY – Gross Gambling Yield – which is retained by the individual casino operator as a monetary balance and which therefore has no bearing on revenue share agreements. The gross gambling yield itself is the balance when the wins paid out by an operator are subtracted from the total amount of stakes retained plus fees held for games. Proprietary gross gambling yield is the casino’s portion of the direct profits from gambling.
‘Proprietary GGY’ Explained
When a casino refers to its gross gambling yield or GGY, it means the amount which is held after wins are subtracted from the total gains through players. This amount includes all stakes put up by players at the establishment, and also any applicable game fees which are directly related to the game. For example, the collection and the buy-in fee typically found in casino poker games will count towards GGY totals. Gross gambling yield is worked out by subtracting all winning bets paid from the total amount of bets taken and fees collected.
This overall figure is the amount on which gaming duty must be paid. It is also the figure most commonly reported by casino businesses as profit. Earnings by the casino for other services, such as hotel and bar takings, do not count toward gross gambling yield. Amounts paid to the player as loyalty comps are also excluded from GGY calculations. The ‘proprietary GGY’ is a little different – this is the portion of the GGY take which is retained by the casino operator as profit, and which is therefore not available to shareholders as part of their revenue agreement. This fraction of the GGY is essentially the casino’s main income, held by the operator or board as income from their business.