Gross Gaming Revenue (GGR) is a cornerstone metric in the dynamic world of the gaming industry, which includes online casinos, sports betting and various forms of gaming.
GGR represents the amount of money a gaming platform retains after paying out winnings to players, serving as a key indicator of financial performance for operators.
For businesses, investors, and regulators alike, GGR provides critical insights into the scale, activity, and stability of a gaming operation, making it an essential tool for assessing the health and potential of the industry.
Gross Gaming Revenue (GGR): The Basic Calculation
Gross Gaming Revenue (GGR) is defined as the difference between the total amount wagered by players and the total winnings distributed by the gaming operator.
The formula is straightforward: GGR = Total Bets (or Total Amount Wagered) – Total Wins (or Total Winnings Distributed).
For example, if players collectively wager $1 million and receive $800,000 in winnings, the GGR would be $200,000. This figure is akin to sales or revenue in traditional businesses, representing the money retained by the gaming platform after paying out winners. However, it’s important to note that GGR is not profit or earnings, as it does not account for operational costs or other expenses.
The Significance of GGR for the Gaming Industry
Gross Gaming Revenue (GGR) is a key indicator of player activity on a gaming platform. A high GGR reflects a large volume of bets, showing strong engagement from users. Operators rely on GGR to assess how well their games and betting options perform and to measure the overall size of their business.
GGR also allows for calculating the GGR margin, found by dividing GGR by the total amount wagered. A higher margin means the operator retains a larger share of the bets, pointing to efficient operations. Additionally, GGR data offers insights into the health and growth of the gaming market. For instance, the American Gaming Association’s report on the U.S. market highlights how rising GGR figures signal a robust and expanding industry.
Real Examples of GGR
Gross Gaming Revenue (GGR) is more than just a theoretical metric—it’s a tangible measure that reflects the financial heartbeat of the gaming industry across various markets and sectors. By examining real-world examples, we can see how GGR quantifies the revenue generated from player activity, offering a clear window into the scale and growth of regulated gambling markets. Below are three specific cases that illustrate GGR’s application in different contexts, drawn from reliable industry reports.
New York’s Dominant Sports Betting Market
New York has established itself as the leading sportsbook market in the United States. Despite not yet legalizing online casinos, the state’s sports betting sector has shown remarkable growth, with online handle reaching a record $23.94 billion in the 2024–2025 fiscal year—a significant 21.9% increase year-over-year.
This substantial betting activity translated into a Total Gross Gaming Revenue (GGR) of $2.14 billion for the New York sportsbook market in FY 2024–2025. The market share breakdown by operator reveals clear industry leaders:
- FanDuel: $969.8M
- DraftKings: $727.9M
- Caesars Sportsbook: $131.4M
- BetMGM: $121.4M
- Fanatics Sportsbook: $120.2M
- Rush Street Interactive: $39.9M
- ESPN Bet: $14.4M
- Bally Bet: $7.6M
- Resorts World Bet: $6.5M
This data underscores both the scale of the regulated sports betting market in New York and the competitive dynamics, with FanDuel and DraftKings capturing approximately 80% of the total GGR.
Netherlands Gambling Market Forecast (2024)
In the Netherlands, the regulated online gambling market has been gaining momentum since its legalization in October 2021. Forecasts for 2024 estimate a GGR of €800 million for the year. This figure represents the revenue retained by licensed operators after paying out player winnings, derived from total wagers placed across online casinos, sports betting, and other gambling formats.
The €800 million projection underscores the market’s steady growth, driven by increasing player participation and a strong regulatory framework that encourages legal operators to capture a significant share of the market. This GGR estimate highlights the Netherlands’ emergence as a key player in Europe’s online gaming landscape, with operators benefiting from a structured environment that balances player protection with revenue generation.
U.S. Sports Betting Revenue (2022)
The U.S. sports betting sector has seen explosive growth since the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), which opened the door for states to legalize betting. According to the American Gaming Association, sports betting in the U.S. generated $7.5 billion in GGR in 2022, nearly doubling the figure from 2021. This massive leap reflects the rapid expansion of legal sportsbooks, both online and retail, across states like New Jersey, Nevada, and Pennsylvania.
The $7.5 billion represents the amount retained by operators after paying out winnings to bettors, fueled by high-profile events like the NFL season, March Madness, and the Super Bowl. This example showcases how GGR captures the surging popularity of sports betting and its growing contribution to the broader gaming industry in the U.S.
Overall U.S. Gaming Revenue (2022)
Zooming out to the entire U.S. gaming industry, 2022 marked a historic milestone. The American Gaming Association reported that the combined GGR from all forms of legal gaming—casinos, sports betting, iGaming, and more—reached an unprecedented $60 billion.
This figure, a record high, encapsulates the revenue generated before accounting for operating expenses, covering everything from slot machines in Las Vegas to online poker in New Jersey. The breach of the $60 billion mark highlights the industry’s resilience and growth, even in the face of economic uncertainties.
It also reflects the increasing acceptance of regulated gambling as a mainstream entertainment option, with GGR serving as a critical metric for tracking the sector’s economic impact across diverse formats and regions.
These examples demonstrate GGR’s versatility as a tool for measuring revenue in the gaming industry. Whether it’s the projected €800 million in the Netherlands’ regulated online market, the $7.5 billion from U.S. sports betting, or the $60 billion across the entire U.S. gaming sector, GGR provides a consistent yardstick for comparing performance across geographies and gambling verticals.
By quantifying the money retained after payouts, it offers operators, investors, and regulators a clear view of market dynamics, helping them gauge the scale of player activity and the financial health of the industry.
GGR vs. Net Gaming Revenue (NGR): Understanding the Difference (Briefly)
While Gross Gaming Revenue (GGR) is a cornerstone metric in the gaming industry, it’s often compared to Net Gaming Revenue (NGR) to provide a clearer financial picture. GGR represents the total revenue retained by a gaming operator after paying out player winnings, calculated as the difference between total wagers and total payouts.
NGR, however, takes this a step further by subtracting various operating costs from GGR, such as player bonuses, payment processing fees, affiliate commissions, licensing fees, and taxes. Essentially, GGR captures the broad revenue stream, while NGR reflects the actual profit an operator takes home after covering these expenses. This distinction makes NGR a more precise measure of profitability, revealing how much money remains for reinvestment or distribution.
The Importance of GGR in Assessing the Gaming Market
Gross Gaming Revenue (GGR) remains a vital metric for understanding the gaming industry’s scale, player engagement, and revenue generation. It serves as a top-line indicator that helps operators evaluate the performance of their platforms, from game offerings to betting markets. For investors, GGR offers a glimpse into a company’s market presence and growth potential, while regulators rely on it to monitor industry trends and inform taxation policies, as seen in discussions around taxing total wagered amounts.
However, GGR is just one piece of the puzzle. To fully grasp an operator’s financial health and profitability, it must be considered alongside metrics like NGR, which accounts for operational costs. Together, these metrics provide a comprehensive view of the gaming market’s dynamics and its stakeholders’ success.