What is ‘Revenue Share GGY’?
‘Revenue share GGY’ refers to the proportion of the Gross Gambling Yield which is shared between contracted parties, such as shareholders and partner companies. It is separate from the Proprietary GGY retained by the operator and not subject to any share agreement. Gross Gambling Yield is the value of all bets taken minus the cost of all bets paid out, prior to expenses or taxes being paid.
‘Revenue Share GGY’ Explained
If a casino company reports on their ‘revenue share GGY’, they mean the portion of revenue which was split between shareholders and other interested parties, of which the casino itself also retains a stake. It is one of the key financial statistics used to determine if a casino is profitable, and also to establish how much tax is owed.
Revenue share GGY relates to the ‘gross gambling yield’ of the business – the income made from bets across all games after the cost of winning bets to the player has been subtracted. In places where gambling is taxed, such as the United States, gamblers also need to be aware of their gross gambling yield – the amount retained in bets after the cost of gambling is subtracted. This figure must be reported to the relevant tax authorities, and gamblers will be liable to pay a portion of their winnings in duties.
GGY can be expressed in a number of terms. Two of the most common are ‘proprietary GGY’ – the figure held by the casino after paid winnings are accounted for – and ‘revenue share GGY’, which means the part of the take which is bound contractually to be split with the shareholders and other interested parties. Revenue share GGY can also be expressed in terms of the overall industry, as part of the income to a national economy which comes from the gambling sector.