Choose the revenue base: Choose the revenue base in the affiliate contract before configuring a RevShare deal. GGR is wagers minus winnings; NGR subtracts only the costs the agreement names, such as bonuses, chargebacks and processing fees. At a 30% rate in the example below, the same player activity pays €12,000 on GGR or €8,910 on NGR. The right choice depends on bonus exposure, cost attribution and whether the affiliate can audit every deduction.
This guide addresses the commercial choice between GGR and NGR. For a fuller explanation of the accounting definitions, see the NGR versus GGR reference. The decision here is which base the operator and affiliate can price, configure and reconcile consistently.
What the same 30% deal pays on each base
GGR equals player wagers minus player winnings. In this example, €1,000,000 in wagers and €960,000 in winnings produce €40,000 GGR. The contract’s NGR definition then deducts €8,000 in bonuses, €1,500 in chargebacks and €800 in processing fees, leaving €29,700. The difference in affiliate commission is €3,090. Taxes are excluded from this example; a real agreement must say whether they are deductible.
| Line | GGR deal | NGR deal |
|---|---|---|
| Wagers less winnings | €40,000 | €40,000 |
| Bonuses | Not deducted | −€8,000 |
| Chargebacks | Not deducted | −€1,500 |
| Processing fees | Not deducted | −€800 |
| Commission base | €40,000 | €29,700 |
| 30% RevShare | €12,000 | €8,910 |
When a GGR deal is workable
GGR is straightforward for an affiliate to reproduce from wagers and winnings. It can suit a program with limited bonus spending and predictable payment losses, or a relationship where the operator deliberately absorbs those costs in exchange for a simpler commission offer. The operator still needs to model bonus, chargeback and payment exposure separately; those costs do not disappear because they are outside the commission formula.
If an offer uses a substantial welcome bonus or attracts high chargeback costs, the operator can owe commission on GGR while the net value of the cohort is much lower. Compare expected affiliate payout with the same cohort’s contribution margin before agreeing to the rate. The bonus-abuse controls are relevant when bonus behavior affects the economics, but a suspicious signal requires review rather than automatic accusation.
When an NGR deal is workable
NGR passes specified cost categories into the commission calculation. It is useful when bonus costs or payment losses vary materially by player or market, provided those deductions can be attributed to the correct player and shown to the affiliate. “NGR” alone is not a complete contract term. Define each deductible cost, its event date, currency conversion rule, tax treatment, correction window and the level at which negative balances are carried.
A deduction pool spread across unrelated players can charge an affiliate for costs their referrals did not generate. Test the platform with a player who uses a bonus and one who does not. Both should show the correct event-level deduction and resulting commission. The affiliate statement should expose enough of the calculation to resolve a dispute without asking finance to reconstruct it by hand.
The conditional cap option
An operator can offer a GGR-based percentage subject to a defined NGR cap. That keeps the ordinary statement simple while limiting payout when deductible costs are unusually high. It also creates a second calculation. State the cap formula, whether it applies per player or cohort, what happens when NGR is zero or negative, and show a worked example in the agreement. If the platform cannot calculate and display both bases, the clause is likely to create disputes.
Decide negative carryover separately
Negative carryover determines whether a negative balance offsets future positive NGR. It does not follow automatically from choosing NGR. The contract should state whether carryover applies, the period and unit of calculation, any reset date, and what happens when an affiliate leaves. See the negative carryover policy guide for the detailed alternatives.
A contract and platform test before signing
| Decision | What to put in writing or test |
|---|---|
| Revenue base | GGR, NGR or a conditional formula; include one worked statement. |
| Deductions | List bonus types, chargebacks, fees and taxes that count; assign each to a player and period. |
| Corrections | Define when a reversal changes an approved or paid statement and how the adjustment appears. |
| Negative balance | Specify carryover, reset and account-closure treatment. |
| Reporting | Export player events and deduction lines that reproduce the affiliate total. |
Run the example above through the platform with a bonus reversal, a late chargeback and a player with no bonus. Compare the event ledger, affiliate view and finance export. A contract term that cannot be reproduced in those records is not ready for live traffic. For other deal structures, see the CPA, RevShare and hybrid comparison; the recruitment playbook covers how to present terms to prospective partners.
FAQ
What is the difference between GGR and NGR for commission?
GGR is wagers minus winnings. NGR starts from GGR and subtracts only the cost categories the affiliate agreement defines. Applying the same RevShare rate to each can produce different payouts.
Is NGR always better for an operator?
No. NGR can reflect variable costs more closely, but it requires reliable player-level deductions and a transparent statement. A simpler GGR deal may be workable when costs are controlled and priced into the rate.
Can taxes be deducted from NGR?
Only if the relevant agreement and applicable rules permit the deduction. Name the tax or levy, the market, the allocation method and the period in the contract.
Does choosing NGR mean negative carryover applies?
No. Carryover is a separate policy. The agreement must specify whether a negative balance offsets future positive periods and when it resets.
What should an operator ask to see in a platform demo?
Ask the vendor to reproduce one player’s wager, win, bonus, chargeback and fee events in the affiliate statement and finance export, including a later correction.
