NGR and GGR? Despite being in its early stage, non GamStop casinos are showing high growth rates.
Furthermore, the market, according to experts, has great potential.
Nowadays, the gap is wide between the two types. While British casinos offer limited bonuses or no bonuses at all, casinos without GamStop offer their players excellent welcome offers that include the first three or five deposits and their value can exceed five thousand euros!
In addition, online casinos without GamStop offer their players huge game libraries with a great variety. On the other hand, UK casino game libraries have a limited number of games developed only from British game creators as they cannot cooperate with non British game studios.
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Not to mention offering big players offers, crypto support, tournaments and sweepstakes. Due to all these competitive edges that non GamStop casinos have over British gambling sites, entrepreneurs see that there are more and more chances to launch their own non GamStop casinos.
Many players know that the house always wins and there is no way to break or even reduce this advantage. “House” is all service providers that have signed up to offer you games including:
- Game content creators
- Payment methods
- Legal advisors
- Licensing agency
By deciding to start their own online gambling sites, many investors focus only on the players' total deposits and winnings. However, there are other indicators to analyze the performance of a gambling enterprise. Therefore, for the success of your project, it is important to understand the difference between these KPIs, the purpose of each of them, as well as make an in-depth analysis.
Table of contents
How Does a Casino Measure Its Winnings?
You might think that the casino measures its winnings by subtracting the players' total deposits from their total losses. However, this is not very accurate. Casinos without GamStop are based on money related Key Performance Indicators (KPIs) that cover GGR and NGR.
As with any other business, gaming companies use KPIs.
KPIs give powerful insights about a company's performance level and can be used to compare a company's performance at any periods in its history, or be used against other companies as well. Of course, the CEO eye does not leave the GGR index, which measures casino net profits over a certain period.
NGR and GGR
What Is the GGR?
Simply put, GGR is the overall concept of gaming revenue which refers to all the money raised through players' bets (minus the players' bonuses and winnings).
Game revenue is known also as ‘Gross Game Profit'. If you are running a sports betting site without GamStop, you know that the higher the profit, the better because this means that you have a bigger net worth!
From a purely economic point of view, total gaming revenue provides a reflection of the real economic value added by the gaming industry. That is, it gives an insight into the extent to which casinos contribute to the overall economy of a region/ country.
Online you will find plenty of news and reviews that celebrate the gaming industry's contribution to the overall economy of the country/ region. For example, the non GamStop gambling industry is the main source of income in Gibraltar, Malta, Cyprus and Curaçao.
What Is the NGR?
NGR is the net profit that goes into a company's account after deducting:
- Operating expenses
- Maintenance fees
- Equipment cost
- Employee wages
- Player earnings
To provide an accurate calculation, the NGR is calculated at the end of each month.
Every business in any industry does this to keep itself out of the vagaries of the market and seize every available investment chance.
For example, when Macau casinos noticed that the volume of the NGR was taking a downward curve at the beginning of 2020, they laid off part of the workforce and reduced the working hours to reduce losses.
If you take a look at the NGR of many land based casinos, you will find that it has been declining since 2015 until now, for the following reasons:
Although land based casinos have always been ranted about their advanced protection systems, scammers still use advanced tricks to deceive casinos and get illegal profits.
Competition From Non GamStop Casinos
Little by little online casinos without GamStop have eaten the dinner of land based casinos. Back in the day, players preferred Macau and Las Vegas casinos because they offered them an exciting gaming experience. However, Evolution Gaming took them off the lead thanks to the great live gaming solutions that they offer in all casinos without GamStop.
Even the jackpot slots are now offered by online casinos with more prizes than their Vegas counterparts! Add to this the economic problems that reduced tourism and encouraged gamblers more and more to enjoy their favorite online games.
While casinos without GamStop benefit from zero taxes, land based casinos pay more than 50% of their net profit NGR in taxes.
How Do Non GamStop Casinos Increase Their NGR?
Non GamStop casinos are an innovative invention. So, they are able to achieve all their goals in modern ways. To increase their winnings, casinos without GamStop achieve on the following plans:
- Since game companies have the freedom to operate from anywhere, they establish their companies in countries that offer them low taxes.
- One company launches several casinos and sports betting sites on the web. This way they are getting more profit while they have paid the license fee once, they have also bought the game content once and also they have not hired more people. If you notice, you will find that every gaming company has at least 3 to 15 gambling sites.
- If the transaction fee is high (for some payment methods) they forward them to the players.
- Tempt players to bet on games with a high house edge.