NGR (net gaming revenue) is the base for RevShare. The programme starts from gross revenue (GGR) and deducts the costs listed in its terms. The longer the list of deductions, the smaller the base, so the same rate brings less money.
What is usually deducted
- bonuses and promotions given to players;
- gambling taxes and licence fees;
- payment costs and chargebacks;
- an admin fee, as a percentage of revenue;
- jackpot contributions and game provider costs.
Example. GGR is 10,000 EUR. Bonuses 2,000 EUR, tax 1,000 EUR, an admin fee of 15% of GGR, that is 1,500 EUR. NGR is 5,500 EUR. At a 30% rate commission is 1,650 EUR, not 3,000 EUR.
Closed and open lists
A closed list names every deduction and nothing else is taken off. An open list leaves room for “other costs” or says “such as”. With an open list the affiliate cannot recalculate NGR from the reports alone.