iGaming Blog

🎰 Welcome to my series of posts on online casino metrics! 🎰 Today, we embark on an exciting journey through the world of gambling metrics, starting with two of the most crucial ones: GGR and NGR. 📊 Gross Gaming Revenue (GGR) What is it? GGR is a metric that shows the total revenue generated by a casino before deducting operating expenses and bonuses. It’s like a thermometer measuring player activity and the success of games. How to calculate it? The formula is simple:  GGR = Bet − Win Why is it important? A high GGR indicates significant player activity and successful gaming operations. The higher the GGR, the more opportunities there are for further growth and investment in platform enhancements. 📊 Net Gaming Revenue (NGR) What is it? NGR is a metric that takes into account not just winnings and bets, but also taxes, commissions, and bonuses. It’s a more precise tool for assessing the real profitability of a casino. How to calculate it? Here’s the formula:  NGR = GGR − Ta...

In the online casino industry, as in any business, it’s crucial to accurately assess the value of the company. Two commonly used methods for this are Discounted Cash Flow (DCF) and Discounted Debt Tax (DDT). Today, I’ll explain how these methods are applied in practice and how they can be used for strategic decision-making. Discounted Cash Flow (DCF) allows you to estimate the value of a casino based on expected cash flows, discounted to their present value. DCF Formula: DCF = CF_1 / (1 + r) + CF_2 / (1 + r)^2 + CF_3 / (1 + r)^3 + ... Where: - CF_t = expected cash flow in period t. - r = discount rate (12% in this example). Example of DCF Calculation: For an online casino with expected cash flows: - Year 1: $500,000 - Year 2: $700,000 - Year 3: $900,000 The present value of these cash flows totals $1,645,180. Discounted Debt Tax (DDT) accounts for tax savings from interest payments on debt. This model is particularly relevant for casinos that use borrowed capital to finance their opera...