IBO · Glossary

iGaming metrics glossary

The numbers of an online gambling business in plain words: what each one means, its formula and an example with invented figures.

• Active playersActive players are the distinct players who placed at least one real-money bet in the period.
• ARPUARPU is revenue of the period divided by the number of active players in it.
• Average betAverage bet is turnover divided by the number of bets placed.
• Bonus costBonus cost is the value of bonuses players turned into real money or that the operator counts as a cost of the period.
• Budget utilizationBudget utilization is the share of a cost budget already used by the actual spend.
• CACCAC is what it costs to acquire one paying customer, counting all acquisition spend: media, affiliates, SEO and bonuses for new players when they are counted there.
• ChargebacksA chargeback is a card payment reversed by the cardholder’s bank, with the money and a fee taken back from the operator.
• Churn rateChurn rate is the share of last period’s active players who are not active this period.
• CM1CM1 is NGR minus the variable costs of serving players, such as payment processing, game provider fees and platform fees.
• CM2CM2 is CM1 minus marketing: what the business earns from its players after the cost of acquiring and keeping them.
• CohortA cohort is a group of players who started in the same period, followed over time to compare their value and retention.
• Contribution marginContribution margin is revenue minus the costs that grow with it, before fixed costs.
• Cost per FTDCost per FTD is the marketing spend of the period divided by the FTD it brought.
• CPA dealA CPA deal pays a partner a fixed amount for each qualified new depositor it brings.
• DepositsDeposits are the money players pay into their accounts in the period.
• EBITEBIT is the operating result of the month: CM2 minus fixed costs such as salaries, rent and software.
• FTDAn FTD is a player who makes a first deposit in the period; it is the main unit of acquisition in iGaming.
• Gaming taxGaming tax is the duty a licensing state charges on gambling revenue, most often a percentage of GGR.
• GGRGGR is the amount players stake minus the amount they win back: what the operator keeps from the games before bonuses, taxes and costs.
• Hold %Hold % is the share of stakes the operator keeps as GGR.
• Jackpot contributionA jackpot contribution is the part of each stake that funds a progressive jackpot.
• LTVLTV is the revenue (or margin) a player brings over their whole life as a customer.
• Monthly closeThe monthly close is the routine that makes a month’s figures final: every department enters and approves its fact, the checks pass and the month is locked.
• Monthly minimumA monthly minimum is the least a client pays in a month, even when the share of revenue comes to less.
• Net depositsNet deposits are deposits minus withdrawals: the cash players left with the operator in the period.
• NGRNGR is GGR after the deductions that come straight off gaming revenue: bonuses given to players and gaming taxes, plus other deductions the operator counts there.
• Partner feesPartner fees are what a game provider pays an aggregator for distributing its games, usually a share of the GGR they make.
• Payback periodThe payback period is how long it takes for the profit of a business to return the money invested in it.
• Payment processing costsPayment processing costs are what payment providers charge to move deposits and withdrawals.
• Plan vs factPlan vs fact compares what was planned for a period with what actually happened, in money and in percent.
• Real money bonus costReal money bonus cost is the part of bonus cost that left the business as withdrawable cash rather than as play value.
• Reg→FTDReg→FTD is the share of registrations that make a first deposit.
• Retention rateRetention rate is the share of players from a starting group who are still active after a given time.
• Revenue shareRevenue share is a deal where a partner is paid a percentage of the revenue it brings, for as long as the deal runs.
• RoyaltyRoyalty is the share of the GGR its games make that a game provider is paid by the aggregator or operator.
• RTPRTP is the share of stakes a game pays back to players over the long run; the rest is the theoretical hold.
• Sportsbook marginSportsbook margin is the share of the sports handle the operator keeps after settled bets are paid.
• Tiered rev shareA tiered rev share changes the rate with volume: each band of revenue has its own percentage.
• TurnoverTurnover is the total amount staked by players in a period, counting every bet including bets of winnings.
• W/D ratioThe W/D ratio is withdrawals as a share of deposits.
• Wagering requirementA wagering requirement is how many times a bonus must be staked before it turns into withdrawable money.
• WithdrawalsWithdrawals are the money paid out to players from their accounts in the period.