Every online casino needs benchmarks to measure progress. Key performance indicators (KPIs) reveal what’s working and what isn’t. Here are crucial KPIs to analyze and enhance your casino business.

Successful businesses rely on data for decisions. Ignoring data can lead you astray, sometimes without realizing it until it’s too late.

KPIs help gauge business health. While there’s no one-size-fits-all approach, knowing which markers to track can guide you. They reveal if you need to adjust bonuses, enhance VIP rewards, or reduce acquisition costs.

Continue reading to learn how to use these KPIs to evaluate your online casino’s performance effectively.

What are KPIs, and how do you use them?

A KPI, or key performance indicator, is a measurable metric used to track business performance over time. KPIs are essential in business analytics for monitoring progress.

For instance, if your company earned $120,000 in GGR last quarter and aims for a 3% increase, your KPI for the next quarter is $123,600. If midway through the quarter you have $61,800 in gaming revenue, you’re on track.

Setting a KPI is just the start; achieving it requires a strategic action plan. To boost sales by 10%, you might need increased marketing efforts. Consider offering more bonuses, enhancing your loyalty program, conducting an SEO audit, or re-engaging churned players.

What is GGR?

Gross gaming revenue, or GGR, is a measure of all the money generated by player losses in a certain time period. It’s calculated by subtracting player winnings from the total amount wagered.

Here’s the formula: GGR = A — B

Where:

A = total amount wagered

B = total amount paid out

Gross gaming revenue (GGR) represents the total money transferred from players to the casino during gameplay. It does not include payouts such as bonuses and solely measures player losses over a specific period.

For instance, if BigBet Casino had total player wagers of $37 million and player winnings of $23 million in 2022, their GGR would be $14 million.

Aggregators can significantly benefit casino operations. When dealing directly with game providers, casinos usually share a portion of their monthly GGR. Even a small revenue share, like 5%, can quickly add up if multiple contracts are involved.

Aggregators offer a streamlined solution: one contract and a single fee for access to thousands of games from various providers. This can simplify operations and potentially reduce costs.

A decline in GGR can stem from various factors, often unclear initially. Key strategies include attracting more players and boosting spending among current ones. Promotions such as tournaments, jackpots, free spins, and bonuses can drive engagement. However, it’s crucial to have well-defined terms and conditions to avoid misuse of bonuses.

What is NGR?

Net gaming revenue (NGR) accounts for more factors than gross gaming revenue (GGR). NGR is calculated by subtracting bonuses, chargebacks, commissions to payment system provider. Royalties to game content providers, licensing fees, and taxes from GGR. This metric provides a comprehensive view of an online casino’s. Performance and is widely used in the industry.

NGR offers a deeper insight into a casino’s financial health compared to GGR by including additional costs.

The formula for NGR is: NGR = A — B — C — D

Where:

• A = Total amount wagered
• B = Total amount paid out
• C = Total bonuses paid to players
• D = Total taxes paid on gaming revenue

For example, if BigBet Casino had $14 million in GGR, with $2 million in bonuses and $1.4 million in taxes, the NGR would be $10.6 million.

GGR vs. NGR

Gross gaming revenue (GGR) measures a casino’s winnings, while net gaming revenue (NGR) includes more expenses. GGR, or gross gaming yield (GGY) in the UK, is used for taxation and payments to platform providers and game developers.

Both GGR and NGR are commonly used KPIs at various levels. GGR is tracked nationally, regionally, and globally, and for specific products like live dealer games or sports betting.

Regulatory bodies, such as the UK Gambling Commission, monitor the industry’s growth by compiling GGR from licensed casinos. The European Gaming and Betting Association tracks the gambling industry’s size within the EU. Data analysis firms measure the GGR of specific products.

NGR, however, is typically a small fraction of turnover—about 2%—reflecting the total amount wagered by players during a given period.

Other Markers

KPIs alone aren’t enough to fully understand your business’s status. Most iGaming brands don’t include them in year-end reports. Instead, you’ll see «Revenue» at the top of an income statement, followed by «Gaming duties» and «Other costs of sales,» leading to Gross Profit and additional details.

A broader view of the business involves many factors—operating costs, other expenses, asset depreciation, employee salaries, and more. For a comprehensive introduction to financial statements for online casinos, refer to detailed resources on this topic.

Money-Related KPIs

These KPIs provide a clear view of your balance sheet. GGR and NGR are just the start of the KPIs online casinos use to track performance.

Bets-to-Deposits

This KPI measures how much of the total deposits are wagered. Deposits alone don’t impact the balance sheet; players need to place bets.

NGR-to-Deposits

NGR-to-deposits indicates the percentage of player deposits converted into casino revenue. Only a small percentage of turnover becomes NGR, so maximizing bets is crucial. This KPI helps gauge how much of their deposits players are wagering.

Analyzing NGR-to-deposits and bets-to-deposits shows how well you incentivize players to place bets after depositing. It’s akin to an e-commerce site analyzing why shoppers abandon carts.

If players deposit but don’t bet, the issue may be your game selection. A lack of appealing or new titles might be deterring them.

People-Related KPIs

These KPIs range from marketing effectiveness to player loyalty duration and measure user interaction with your platform.

Conversions

The conversion rate compares potential users who could perform a target action to those who do.

For instance, the number of people receiving a call-to-action (CTA) email versus those who click it is analyzed. This analysis over many campaigns can refine your email strategies, keeping effective methods and dropping the ineffective.

Understanding the customer journey helps identify weaknesses. Track a player’s path from first noticing your brand, such as seeing an ad, to becoming a loyal VIP.

Visitors to Signups, Signups to Deposits, Retention and Churn Rate.

Retention and Churn Rate

How long do players stay after depositing? Measure retention over periods like three, six, and twelve months to understand player loyalty.

Markets vary globally, with different game preferences and responses to promotions.

Churn rate analysis helps improve retention strategies and detect potential bonus abuse. High churn immediately after fulfilling rollover requirements may indicate bonus hunters. If prevalent, reevaluating your bonus tactics might be necessary.

There’s no single solution to decline in retention, signaling potential issues. High churn might reflect player dissatisfaction, competitive pressures, or an inadequate game selection.

Casinos often maintain comprehensive stats on player interactions. Analyzing behaviors such as deposit frequencies and amounts. This data helps in devising strategies to reduce churn.

Turning casual visitors into loyal players is key. VIP programs are effective, rewarding consistent, substantial deposits with perks and personalized service, increasing mutual value over time.

Other retention strategies include introducing and highlighting new games on the main page and engaging players with promotions like tournaments. Additionally, casinos enhance communication through SMS marketing, keeping players informed and engaged.