In iGaming, everything is about numbers. Revenue is calculated by operators, commission by affiliates, and taxes by regulators. Over the years, the big headline figure has been Gross Gaming Revenue (GGR), which is the sum of stakes minus wins. However, the catch is that affiliates are not paid on GGR.
They are compensated on Net Gaming Revenue (NGR). And that changes everything.
So, what is net gaming revenue? It is simply the real profit that remained after calculating bonuses, fees, taxes, and operating costs on GGR. Not only is it a more realistic measure, but it is the basis on which affiliate payout models are developed. To the operators, it guarantees sustainability. To affiliates, it constitutes trust.
NGR can be simply calculated as:
Stakes - Player Winnings - Bonuses - Licensing Fee - Taxes - Processing Cost = NGR.
For example:
NGR = $1,000 – $600 – $150 – $50 – $25 = $175
That is what the operator really has left over, or what the affiliates are normally paid in commissions.
NGR, unlike GGR, considers the actual expenditure of a regulated operation, which appears healthy on paper. It shows the actual profitability of a brand in different regions and campaigns, which is a far more just benchmark for affiliate payouts.
The majority of affiliate relationships rely on revenue share agreements. Rather than paying a flat fee, affiliates receive a percentage of NGR- say 30%. In our previous example, the affiliate would get 30 percent of $175 ($52.50) and not 30 percent of the total GGR of $400.
It may sound smaller, but it is sustainable—and prevents operators from overpaying on high-bonus or high-tax months.
NGR also affects hybrid models (CPA + revenue share). Flat CPA deals are typically accompanied by provisions based on the activity of players and their NGR performance, ensuring that the operator is not incurring losses on players who are not profitable to sign up.
To operators, NGR-based payouts are financially viable. By including bonuses, payment processing, and compliance costs, brands have a chance to manage risk and yet reward affiliates.
Associates can quite easily feel cheated, though, when notified about the deductions in a straightforward manner. Absence of transparency creates conflicts, and in a competitive industry, this appeal of mistrust may lead affiliates to other brands or even competing affiliate networks.
Operators not properly defining deductions, such as fraud write-offs or chargebacks, risk losing their partners. Affiliates desire clarity: What is it that is deducted? When and why? This openness builds credibility and enhances relationships.
This is made possible by modern tools. Software such as Affnook automates deductions, offers real-time dashboards, and provides clear reporting. Affiliates can be fully aware of the computation of NGR, which minimizes controversy and enhances long-term loyalty.
All deductions must be spelled out in affiliate agreements by operators. Any ambiguity in relation to taxes, fraud, or bonus expenses is a quick road to discontented partners. Clarity in contracts makes relationships healthy.
This is where technology comes in. iGaming affiliate marketing software takes the hassle out of reporting, tracking player activity by region, and making sure that commissions based on NGR are done automatically without any manual errors.
In the brands that operate a system with affiliates, automation would save time and would also eliminate cases of trust. Knowledge of the meaning of net gaming revenue is not merely a technicality but the basis of long-term affiliate success. Although GGR gives a glitzy impression, it is NGR that influences fair payouts, sustainability, and regulatory market compliance.
Operators that focus on transparency, use NGR-based contracts, and invest in platforms such as Affnook will not only enhance their affiliate relationships but also expand more rapidly in many jurisdictions.
In the end, NGR isn’t just about numbers—it’s about building partnerships on fairness, clarity, and trust. And in iGaming, those are the currencies that last.
