GGR Deductions

GGR deductions are the specific cost categories that operators subtract from Gross Gaming Revenue (GGR) to arrive at Net Gaming Revenue (NGR). Since most iGaming affiliate programs calculate RevShare commissions on NGR rather than GGR, the types and amounts of deductions directly determine how much affiliates actually earn. Understanding what gets deducted and whether those deductions are fair is one of the most important factors in evaluating an affiliate program.

Common GGR deductions include payment processing fees (typically 2-5% of deposits), gaming tax obligations (varies by jurisdiction, from 0% in Curacao to 21% under UKGC), game provider royalties (10-15% of GGR for third-party content), bonus costs (deposit matches, free spins, cashback), chargeback losses, platform licensing fees, and sometimes a general administrative fee. Each deduction reduces the NGR base on which RevShare commissions are calculated.

The fairness of GGR deductions is a persistent tension in iGaming affiliate marketing. Operators who load excessive deductions onto the NGR calculation effectively reduce their RevShare rate below the headline percentage. An operator offering 40% RevShare with aggressive deductions may pay less than one offering 30% RevShare with minimal deductions. Sophisticated affiliates compare revenue share deductions across programs to identify the true effective commission rate.

Transparency in deduction reporting is a key indicator of program quality. Operators who provide itemized deduction breakdowns in their affiliate dashboard earn greater affiliate trust than those who report only the final NGR figure. Clear deduction visibility also simplifies revenue reconciliation and reduces disputes during the payout cycle.