Deposits are funding movements, not the same thing as gambling revenue.
An NGR number is only comparable when its deduction rules are explicit.
Reconcile the same product, period, currency and transaction population.
Definitions from the British regulator are labelled as such. The numerical example and reconciliation workflow are IGW³ illustrations, not financial statements, tax advice or a universal definition of NGR.
Illustrative revenue bridge
| Line | Calculation | Amount |
|---|---|---|
| Settled stakes | Given | €100,000 |
| Settled payouts | Given | €96,000 |
| Gross revenue | 100,000 − 96,000 | €4,000 |
| Agreed example deductions | 800 + 300 + 400 | €1,500 |
| Example contractual NGR | 4,000 − 1,500 | €2,500 |
A regulatory return, tax computation and commercial revenue-share invoice may require different adjustments. Preserve a separate documented bridge for each.
Start with the regulatory definition you actually report
The British Gambling Commission defines gross gambling yield using A + B − C: stakes, plus other directly connected amounts excluding VAT, less prizes or winnings. Its guidance also specifies how cash-equivalent bonuses and cashback are treated. Do not substitute an internal dashboard formula for that reporting definition. Another jurisdiction or a supplier revenue-share contract may use a different basis.
Keep the money journey separate from the revenue calculation
A deposit adds funds to an account. A stake commits funds to a wager. A settled winning payout credits the outcome. A withdrawal moves available funds out. One deposited amount can be wagered repeatedly, so turnover can exceed deposits without implying that more cash entered the business. Build separate reconciliations for customer balances, game settlement and bank or processor settlement. A chart labelled revenue should not silently switch between these populations.
Read the worked example as a definition, not a benchmark
For the fictional cash-only period below, all wagers are settled in the same currency, there are no other gaming receipts, and payouts include returned stake where applicable. Stakes of €100,000 less payouts of €96,000 produce €4,000 gross gaming revenue on that simplified basis. The observed margin is 4%. This is arithmetic on an invented dataset, not a recommended margin, expected return or claim about any operator.
Write the NGR bridge before negotiating the percentage
In this example the parties have explicitly agreed to deduct €800 of promotional cost, €300 of payment cost and €400 of other contractually permitted adjustments from that €4,000. The resulting €2,500 is called NGR only under this illustrative agreement. Changing the permitted deductions changes the base even if the revenue-share percentage stays the same. Ask how negative periods, carry-forward, jackpots, taxes, fraud losses and corrections are treated rather than assuming they are all included or excluded.
Is the deduction recognised when granted, used, settled or invoiced?
Can the same cost appear in more than one deduction line?
Make the reconciliation reproducible
Save the period start and end, timezone, currency conversion rule, game identifiers, wager status and extraction time alongside the calculation. Connect each adjustment to a transaction or documented allocation. Keep cancelled, refunded and unsettled wagers identifiable. When finance and a supplier disagree, first compare the underlying population and cut-off, then the treatment of each item; debating only the final percentage hides the cause.
Use a monthly control pack
Our suggested pack contains a transaction extract, opening-to-closing player-balance bridge, processor settlement reconciliation, deduction schedule and a signed exceptions list. Give every unresolved difference an owner and a next review date. Report gross revenue, each deduction and the resulting contractual base separately. A buyer should be able to trace one sampled invoice amount back to its supporting wager and adjustment records without a new spreadsheet reconstruction.
Sources and scope
Definitions from the British regulator are labelled as such. The numerical example and reconciliation workflow are IGW³ illustrations, not financial statements, tax advice or a universal definition of NGR. Sources reviewed 2026-10-18; check the linked originals for later changes.
Gambling Commission — GGY calculation and bonus treatmentCompare the same requirements across suppliers and record evidence, tests and unresolved gaps. The editable workbook starts with no supplier results or approvals.
Get the free supplier evaluation worksheetThis educational guide is independent, free to access and designed as a practical starting point. Regulatory and legal requirements should always be confirmed with the relevant authority and qualified advisers.
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