Gambling businesses, investors, regulators and analysts use a shared vocabulary of metrics. The same terms are sometimes defined differently from company to company, so the first rule is: always check the definition. This article explains the most important KPIs and works through each with numbers. All figures are hypothetical and chosen for clarity.
Turnover, stakes and handle
Turnover (or total stakes) is the total amount wagered. In sports betting this is usually called handle. In casino, turnover counts every spin, so the same €100 can be “turned over” many times as a player re-stakes winnings.
Example: A player deposits €100 and makes 500 spins of €1 each, ending with €80. Turnover is €500, even though only €100 was deposited.
Turnover is useful for measuring activity, and it is the tax base in some markets — Germany taxes virtual slots at 5.3% of stakes — but it overstates the money the business actually keeps.
GGR — gross gaming revenue
GGR = stakes − winnings paid to players. It is the amount the operator retains from gambling before any costs. Most gambling taxes are levied on GGR (also called gross gaming yield, GGY, in Great Britain).
Casino example: In a month, players stake €2,000,000 on slots and receive €1,920,000 in winnings. GGR = €2,000,000 − €1,920,000 = €80,000.
For the player-side view of the same maths, see how house edge works.
Hold % (GGR margin)
Hold % = GGR ÷ stakes (or handle) × 100.
Casino: €80,000 ÷ €2,000,000 = 4%. That is consistent with an average slot RTP of 96% (100% − 96% = 4%). See RTP explained.
Sports betting example: Handle is $10,000,000 and winning bets are paid $9,100,000. GGR is $900,000, so hold = $900,000 ÷ $10,000,000 = 9%.
Sportsbook hold fluctuates with results. If favourites win heavily one month, hold can fall sharply; parlays (accumulators) tend to raise hold because their built-in margin compounds across legs. Analysts distinguish theoretical hold (based on the pricing margin) from actual hold (what happened).
NGR — net gaming revenue
NGR has several definitions. The most common:
NGR = GGR − bonus and promotional costs.
Some operators also deduct gambling taxes, payment fees or platform fees; affiliate contracts often specify their own NGR definition, which can deduct chargebacks and admin fees.
Continuing the casino example: GGR €80,000, bonus costs €12,000. NGR (after bonuses) = €68,000. If a 20% tax on GGR applies (€16,000) and the contract defines NGR after tax, NGR = €68,000 − €16,000 = €52,000.
The difference between €68,000 and €52,000 shows why the definition matters, especially for revenue-share affiliates.
Active players and ARPU
Active players is usually defined as players who placed at least one real-money bet in the period. ARPU (average revenue per user) is revenue divided by active players. Some businesses use ARPPU (per paying user) or ARPDAU (per daily active user).
2,000 active players generated NGR of €68,000 in the month. ARPU = €68,000 ÷ 2,000 = €34 per active player per month.
Averages hide distribution. In gambling, revenue is often concentrated: a small share of players can account for a large share of GGR. Regulators increasingly treat high concentration as a potential harm indicator. See responsible gambling obligations for operators.
Registrations, FTDs and conversion
- Registrations (sign-ups): new accounts created.
- FTD (first-time depositor): a new player making their first deposit. FTDs are the standard unit of acquisition.
- Conversion rate: FTDs ÷ registrations.
2,500 registrations produced 1,000 FTDs. Conversion = 1,000 ÷ 2,500 = 40%.
CPA — cost per acquisition
CPA = acquisition spend ÷ number of FTDs. In affiliate deals, CPA is also the fixed fee paid per qualifying FTD.
Marketing spend of €150,000 produced 1,000 FTDs. Blended CPA = €150.
Churn and retention
Churn rate = players lost in a period ÷ players at the start of the period. Retention = 1 − churn.
2,000 players were active in September; 600 of them did not play in October. Churn = 600 ÷ 2,000 = 30%; retention = 70%.
A simple rule of thumb: average customer lifetime ≈ 1 ÷ churn rate (in periods). With 30% monthly churn, average lifetime ≈ 3.3 months.
LTV — lifetime value
LTV estimates the total value a player generates over their relationship with the operator. A simple version:
LTV = monthly contribution per player × expected lifetime in months.
Contribution should be after variable costs (tax, supplier fees, payments, bonuses), not raw GGR.
ARPU is €34 a month. Variable costs (tax, game supplier fees, payments) absorb 50%, leaving a contribution of €17 per month. With monthly churn of 20%, expected lifetime is 1 ÷ 0.20 = 5 months. LTV = €17 × 5 = €85.
Compared with the €150 CPA above, each acquired player loses €65 on average. The business would need to raise retention, lower acquisition cost or increase contribution — or recognise that the market is uneconomic. Here is how retention changes the picture:
| Monthly churn | Expected lifetime | LTV at €17/month | LTV − CPA (€150) |
|---|---|---|---|
| 30% | 3.3 months | €57 | −€93 |
| 20% | 5 months | €85 | −€65 |
| 10% | 10 months | €170 | +€20 |
| 5% | 20 months | €340 | +€190 |
Real LTV models use cohorts, discount future cash flows and account for the fact that churn is usually highest in the first weeks.
Payback period
Payback = CPA ÷ monthly contribution per retained player (approximately, ignoring churn). With €150 CPA and €17 monthly contribution, payback takes nearly nine months of continued activity — longer than the expected lifetime at 20% churn, which confirms the negative unit economics.
Other metrics you will meet
- Deposits and withdrawals — gross cash flows; net deposits approximate cash GGR.
- Bonus cost as % of GGR — a common efficiency measure.
- Marketing spend as % of revenue.
- Sportsbook margin by sport or bet type.
- Live vs pre-match share of handle.
- Channelisation rate — share of a market’s gambling with licensed operators, used by regulators and policy-makers.
Using KPIs responsibly
KPIs describe commercial performance, but in gambling they also describe player behaviour. A rising ARPU can mean more engaged recreational players — or a few players losing more than they can afford. Responsible analysis pairs commercial KPIs with harm metrics such as limit uptake, self-exclusion rates and the share of revenue from players showing markers of harm. For definitions of other terms, see the iGaming glossary.
Frequently asked questions
Is GGR the same as profit?
No. GGR is revenue before bonuses, taxes, supplier fees, payment costs, marketing and overheads. Profit is what remains after all of those.
Why does hold % differ from the game's house edge?
House edge is theoretical over very large samples. Actual hold in any period varies with results, the mix of games or bets, and bonus play.
What is a good LTV to CPA ratio?
There is no universal benchmark. Businesses generally aim for lifetime contribution comfortably above acquisition cost, but the right margin depends on payback period, risk and capital.
Do regulators use these metrics?
Yes. Regulators publish GGR by product and market, and some examine revenue concentration and spending patterns as part of harm prevention supervision.