iGaming Glossary: A–Z of Gambling Industry Terms

This glossary defines terms used across the gambling industry and throughout we2bet.org’s business, regulation and guide sections. Definitions are deliberately short and general. Where a term has a specific legal meaning in a particular jurisdiction, the country profiles on the regulation hub give the detail. Worked examples of the main metrics are in gambling industry KPIs explained.

A

Accumulator

A single bet combining several selections, all of which must win for the bet to pay. Called a parlay in North America. Margins compound across legs, so accumulators typically carry a higher bookmaker margin than single bets.

Acquirer

The bank that processes card payments on behalf of a merchant such as a gambling operator. Acquirers onboard gambling merchants under enhanced risk controls.

Affiliate

A marketing partner that refers players to operators in exchange for commission. See iGaming affiliate regulation.

Affordability check

An assessment of whether a customer’s gambling spend is sustainable given their financial circumstances. Also called a financial risk check. See affordability and financial risk checks.

Aggregator

A B2B provider that gives operators access to many game studios through a single integration, often handling billing and reporting.

AML (anti-money laundering)

Laws, controls and processes designed to prevent criminal proceeds being laundered through gambling. See anti-money laundering in gambling.

ARPU

Average revenue per user: revenue divided by active players in a period.

Autoplay

A feature that plays spins automatically without each being triggered by the player. Banned or restricted in several regulated markets.

B

B2B

Business-to-business. Companies that supply operators rather than players, such as platforms, game studios and payment providers.

B2C

Business-to-consumer. Operators that offer gambling directly to players and hold the consumer-facing licence.

Black market

Gambling supplied to a market’s residents by operators without the required local licence. Also called the unlicensed or illegal market. See spotting unlicensed operators.

Bonus abuse

Exploiting promotions in ways the terms do not allow, for example by opening multiple accounts. Operators use fraud tools to detect it.

Bonus buy

A slot feature that lets players pay to enter a bonus round directly. Banned in some markets because of harm concerns.

C

Channelisation

The share of a market’s gambling activity that takes place with licensed operators. A key measure of a regulatory system’s effectiveness.

Chargeback

A card payment reversed by the issuing bank after the cardholder disputes it. High chargeback rates can lead to penalties or loss of payment processing.

Churn

The proportion of players who stop playing during a period. Retention is its inverse.

Closed loop

A payments rule requiring withdrawals to be returned to the method used for deposit where possible, to reduce money laundering risk.

Compliance contribution

A Malta Gaming Authority levy on B2C licensees calculated on gaming revenue, with minimums and caps.

Concession

A licence granted by the state for a fixed term, often in a limited number and sometimes for a fixed price, as in Italy.

Cooling-off period

A short break from gambling, usually from 24 hours to a few weeks, that a player can activate. Also called a time-out.

CPA

Cost per acquisition: marketing spend divided by new depositing players, or the fixed fee paid to an affiliate per qualifying depositor.

Cross-sell

Encouraging a customer of one product (such as sports betting) to try another (such as casino). Increasingly scrutinised by regulators.

D

Data vault

A secure repository, required in some markets, into which operators copy transaction and player data for regulator access.

Deposit limit

A cap on how much a player can deposit over a day, week or month. Mandatory to offer, and in some markets mandatory to set. See setting deposit, loss and time limits.

Duty of care

The obligation on operators to take reasonable steps to protect customers from gambling harm, used in regulatory and policy discussion.

E

EDD (enhanced due diligence)

Deeper customer checks applied to higher-risk customers, such as those depositing large sums or identified as politically exposed persons.

E-wallet

A digital wallet service used to deposit and withdraw funds without sharing card details directly with the operator.

F

Fit and proper

The regulatory test that owners, directors and key staff are honest, competent and financially sound.

Fixed odds

Betting where the payout is fixed at the time the bet is placed, as opposed to pool betting.

FTD

First-time depositor: a newly registered player who makes their first deposit. The standard unit of acquisition.

G

Gamification

Use of game-like features such as levels, missions and badges to drive engagement. Some regulators restrict it.

GGR (gross gaming revenue)

Stakes minus winnings paid to players. The industry’s core revenue measure and the most common tax base.

GGY (gross gambling yield)

The term used in Great Britain for broadly the same measure as GGR.

Geolocation

Technology that confirms a player’s physical location, mandatory in US states and Canadian provinces with online gambling.

Grey market

A market where online gambling is neither clearly licensed nor actively enforced against. Usage varies; regulators often prefer “unlicensed”.

H

Handle

The total amount wagered, especially in sports betting.

High-roller

A customer who stakes large amounts. High-value customers attract enhanced checks in regulated markets.

Hold %

GGR as a percentage of stakes or handle. In sports betting, hold varies with results and bet mix.

House edge

The built-in mathematical advantage a casino game holds over players, expressed as a percentage of stakes. See how house edge works.

Hub licence

A licence from a jurisdiction such as Malta, the Isle of Man, Gibraltar or Curaçao, used to serve players in markets without local licensing.

I

In-play betting

Betting on an event while it is in progress. Also called live betting. See sports betting risks and in-play betting.

Inducement

A bonus, free bet or other incentive to gamble. Advertising of inducements is restricted in several markets.

Integrity monitoring

Analysis of betting patterns to detect possible match-fixing or insider betting, often shared with sports bodies.

J

Jackpot

A large prize, sometimes fixed and sometimes progressive. Jackpot contributions are often a set percentage of each stake.

Jurisdiction

A territory with its own gambling laws, which may be a country, a state, a province or a self-governing territory.

K

Key function holder

An individual in a senior role who must be approved by, or notified to, the regulator.

KYC (know your customer)

Verification of a customer’s identity, age and, where required, address and source of funds. See KYC and identity checks.

L

Licensing hub

See hub licence.

Live casino

Table games streamed in real time from a studio with human dealers.

Loss limit

A cap on net losses a player can incur in a set period.

LTV (lifetime value)

The total contribution a player is expected to generate over their relationship with an operator.

M

Margin

The bookmaker’s built-in advantage on a market, also called the overround or vig. Also used loosely for hold or profit margin.

Markers of harm

Behavioural signals that a customer may be experiencing gambling harm, such as escalating deposits or chasing losses.

MCC (merchant category code)

A code used by card schemes to classify merchants. Gambling transactions carry a gambling code, which enables bank gambling blocks.

MLRO

Money Laundering Reporting Officer: the person responsible for AML controls and suspicious activity reporting.

Monopoly

A model in which a single, usually state-owned, operator holds exclusive rights to offer some or all gambling products.

N

Near miss

An outcome that appears close to a win. Studied as a design feature that can encourage continued play. See near-misses and game design.

NGR (net gaming revenue)

GGR minus bonuses, and sometimes taxes and other costs, depending on the definition.

O

Odds

The expression of a price, implying a probability, in fractional, decimal or American format. See understanding odds and probability.

Open banking

Regulated access to bank account data and payment initiation, used for deposits, withdrawals and affordability checks.

Open licensing

A regulatory model under which any operator meeting the requirements can obtain a licence.

Operator

A company offering gambling to consumers, usually the licence holder.

Overround

The amount by which the implied probabilities of all outcomes in a market exceed 100%, representing the bookmaker’s margin.

P

PAM (player account management)

The core operator platform that manages registration, wallets, limits, bonuses and reporting.

Parlay

North American term for an accumulator.

PEP (politically exposed person)

A person with a prominent public role, or their close associates, subject to enhanced AML checks.

Point of consumption

The principle that gambling is regulated and taxed where the player is located, not where the operator is based.

Pool betting

Betting where stakes are pooled and shared among winners after a deduction, as in the tote or football pools.

Prediction market

A market in which participants trade contracts on the outcome of future events. Its classification as gambling or financial trading is contested in several jurisdictions.

PSP (payment service provider)

A company that connects merchants to payment methods and acquirers.

Q

Qualifying deposit

The minimum deposit that triggers an affiliate CPA payment or a bonus, as defined in contract or promotion terms.

R

Rake

The commission a poker operator takes from each cash game pot or tournament entry.

Reality check

A pop-up reminder showing time played and, often, net spend. See reality checks and cooling-off periods.

Revenue share

A commission model paying affiliates a percentage of NGR from referred players.

RGS (remote game server)

The server, usually operated by a game studio or aggregator, that runs game logic and determines outcomes.

RNG (random number generator)

Software that produces the unpredictable results behind digital casino games. RNGs are tested and certified by approved laboratories.

Rolling reserve

A portion of a merchant’s processed funds held back by an acquirer for a period as security against chargebacks.

RTP (return to player)

The theoretical percentage of stakes a game pays back over a very large number of plays. See RTP explained.

S

Safer gambling

The term increasingly used in Great Britain and elsewhere for responsible gambling measures.

SAR (suspicious activity report)

A report filed with a national financial intelligence unit when money laundering is suspected.

Segregated funds

Player balances held separately from operator operating funds so they can be returned if the operator fails.

Self-exclusion

A voluntary arrangement in which a person bars themselves from gambling for a set period. See self-exclusion explained.

Skin

A branded site running on another company’s platform or licence.

Source of funds

Evidence of where money used for gambling comes from, such as salary or savings.

Source of wealth

Evidence of how a person accumulated their overall wealth, used in enhanced due diligence.

Stake

The amount wagered on a single bet or spin.

Stake limit

A legal maximum on the amount that can be wagered per spin or bet. See stake and deposit limits by law.

Sub-licence

A licence derived from a master licence. Historically associated with Curaçao’s former master licence system, now replaced by direct licensing.

Sweepstakes casino

A casino-style product using a dual-currency promotional model, mainly in the US. See sweepstakes and social casinos regulation.

T

Testing laboratory

An independent body approved by regulators to test and certify games, RNGs and platforms.

Turnkey

A packaged solution in which a supplier provides platform, games, payments and often operational services.

Turnover

Total amount staked over a period. In casino, the same funds can be turned over many times.

Turnover tax

A tax levied on stakes rather than on GGR, as with Germany’s tax on virtual slots and online poker.

U

UBO (ultimate beneficial owner)

The natural person who ultimately owns or controls a company. Regulators require UBOs to be disclosed and checked.

Unlicensed operator

An operator serving a market without the licence required there. See how to check if a gambling site is licensed.

V

Vertical

A product category, such as casino, sports betting, poker or bingo.

Vig (vigorish)

North American term for the bookmaker’s margin.

VIP scheme

A programme rewarding high-value customers. Subject to enhanced checks in regulated markets because of harm concerns.

Volatility

How widely a game’s outcomes vary. High-volatility slots pay less often but in larger amounts.

W

Wagering requirement

The number of times a bonus (and sometimes deposit) must be staked before winnings can be withdrawn. See understanding bonus terms and wagering requirements.

White label

An arrangement in which a brand operates on another company’s licence and platform, with the licence holder retaining regulatory responsibility.

Withdrawal reversal

A feature allowing a player to cancel a pending withdrawal and continue gambling. Restricted or banned in several markets.

X

xG (expected goals)

A football statistic estimating the quality of scoring chances, used widely in sports analytics and odds modelling.

Y

Yield

See GGY. Also used loosely for revenue per unit of activity.

Z

Zero-sum

A situation in which one party’s gain equals another’s loss. Player-versus-player games such as poker are close to zero-sum among players before the operator’s rake.