When operating an iGaming platform, each operator needs to conduct a comprehensive and in-depth assessment of the progress of its gaming business model. This is a meticulous and systematic process that requires operators to actively explore and absorb a variety of information in order to make informed and thoughtful decisions. In this process, key performance indicators (KPIs) play a vital role. They are a key tool to help operator owners judge whether their company's business strategy is correct. These performance indicators are real-time and can provide immediate feedback, allowing operators to accurately understand how effective their company's operations are and where they need improvement. Therefore, KPI is not only an important tool to evaluate the company's current status but also an important reference to provide guidance for the company's future development. By having an in-depth understanding of some key gaming platform KPIs, and by conducting in-depth and detailed analysis of them, you can better improve and enhance your business level, thereby making your gaming platform more successful and efficient.

That's why companies use key performance indicators (KPIs) to measure the health of their business. Just like any other business, there is no one-size-fits-all formula for success in an iGaming operation. KPIs provide a series of metrics to continuously track these indicators, adjust your business model, and evaluate the impact of your business strategies on iGaming operations.

iGaming KPIs include GGR, NGR, average revenue per user, NGR deposit amount, betting deposit amount, user lifetime value, and customer churn rate. These can provide you with a way to measure the progress of your plan and guide your next strategy. for reference and help.

The editor of TC-Gaming will give some examples here, which are more commonly used KPIs in betting platforms.

What is Gross Gambling Revenue (GGR)?

Gambling gross profit = total bet amount - total payout amount, is a key indicator to measure the gambling business and is a direct indicator to measure the revenue capability of your gambling platform business. Therefore, GGR is also a core indicator that reflects the profitability of a gambling game. Shows how much a betting platform has won, or how much a bettor has lost, over a specific time period.

For example, if a player bets a total of US$3 million throughout the year and wins a total of US$2.5 million, the betting platform's GGR for the year would be US$500,000, but this figure does not include sign-up bonuses and what is returned on top-ups.

GGR = AB, where A is the total amount of all bets made by the player and B is the total amount of all payments made to the player.

However, there could be multiple reasons for the decline in GGR if you don’t know which factors affect the performance of your gambling platform.

if you don’t know which factors affect the performance of your gambling platform.

There are several possibilities here:

1. The more players register with deposits or play tournaments, or other rewards are given away.

2. The bonuses awarded as rewards exceed the standard limits.

3. The cost for new players is getting higher and higher.

The use of top-up bonuses such as tournaments, jackpots, free spins, and bonuses can all increase the conversion of new players, but it is important to note that clearly defined limits and well-thought-out terms and conditions are necessary to prevent cheating.

What is Net Gambling Revenue (NGR)?

Net Gambling Revenue usually refers to the gross gambling profit GGR after deducting the cost of bonuses given to gamblers, commissions paid to payment system providers and paid to game providers, as well as other commissions, usage fees, photo fees, and profit after taxes:

Gambling net profit = total bet amount - total payout amount - Bonus cost.

Net gaming profit is the core KPI of gaming companies and the only key indicator to measure the profitability of the entire gaming platform business. In the annual work plan of gaming companies, NGR is usually used as a North Star-like indicator to guide and require each department to take this as its goal, break it down into various work indicators according to the department's work focus, and formulate specific work plans.

NGR = ABCD, where A is the total amount of all bets made by the player, B is the sum of all payments made to the player, C is the sum of all winnings received by the player, and D is the sum of all taxes.

NGR provides a quick and succinct summary of how iGaming is performing. The numbers shown by NGR are more in-depth than GGR, taking into account a wider range of costs.

GGR and NGR are both very commonly used KPIs, and not just at the gaming industry level. It is also used in other types of businesses or in the national, regional, and global gaming industry.

Betting Deposit

Of the total amount players deposited, how much did they bet? This won't do much for your balance sheet if it's just a top-up; bettors should put their money into gambling instead.

NGR and Deposits

NGR to deposit ratio represents the percentage of player deposits converted into gaming revenue. Ultimately, only a small percentage of turnover will be converted into NGR, so bettors should bet as much as possible. This way you can measure how much players bet.

Give players rewards, activate gambling members, and allow them to recharge and bet after they have an account. In a way, this is similar to e-commerce sites trying to figure out why shoppers put items in their carts and then abandon them before checking out.

If players make deposits but don’t follow up and place bets, the problem may be with your betting game product. It could be that your gambling portfolio doesn’t have enough new or attractive games for players to play.

Conversion

From marketing, advertising, and operations to the duration of user loyalty, these KPIs are used to see how users interact with your betting platform. The conversion rate compares the number of users targeted to the number of users who successfully completed some action or goal.

For example, the number of people who viewed an ad compared to the number of people who clicked on it, or the number of people who received a marketing email compared to the number of people who clicked on an ad. Breaking down this process allows you to find weak links in your marketing chain.

Conversion KPI: Visitor to registration

Out of all the potential new players who visit your betting platform website, how many sign up for an account? Looking at your conversion rate at this stage can assess whether you need to improve your marketing campaign to attract visitors to your betting site.

Conversion KPI: Registration to First Time Deposit (FTD)

As the name suggests, First Time Deposit (FTD) refers to the first deposit action taken by a gambling player after registration. This metric primarily reflects the platform's ability to convert new users. It focuses on the conversion rate from account registration to first deposit and the deposit amount. By optimizing product design, marketing strategies, and other methods, these two metrics can be improved, significantly enhancing the platform's ability to convert new users. Deposit rates directly impact the effectiveness of advertising campaigns and promotional investments.

User retention and churn rates

In the iGaming industry, two important indicators are retention rate and churn rate. Retention is usually measured over a specific period of time, for example, once a user becomes a top-up player, how long is the average time they stay on your betting platform? This time period can be 3 months, 6 months, or even 12 months. By tracking average retention rates over these time periods, we can understand how often players return to your gambling platform before leaving.

But each region and country's market has its own characteristics. Players around the world have their own gaming and sportsbook preferences, have their own budgets, and respond differently to marketing offers. Therefore, retention rates may vary around the world.

On the other hand, churn rate refers to the proportion of bettors who leave your betting platform. This is an equally important metric because it helps us understand how many players stopped using our platform over a certain period of time. By analyzing the customer churn rate and tracking the time players stay on the platform, we can not only design or improve user retention strategies but also check for potential abuse of user rewards, such as: brushing turnover, etc.

While there is no one-size-fits-all, always-effective way to solve the problem of user churn, we can glean some important information from user retention and churn rates. For example, a high churn rate may indicate that players are dissatisfied with our platform, that our competitors are performing better, that we do not have an adequate variety of games to meet player needs, or that there are other problems.

As a result, successful iGaming platforms typically analyze large amounts of user data and track player interactions with the site. This data includes player behavior such as the amount and frequency of their deposits, etc. We can use these analytics to design and implement strategies to reduce customer churn. This is important because it is cheaper to retain an existing player than to find a new one. Therefore, all successful betting platforms strive to convert one-time visitors into loyal long-term players.

Average session length of bettor users

This metric measures the average time players spend per session on your platform.

Generally speaking, the longer the average session time, the better. This is because the longer players stay on the platform, the more engaged they are in the game, potentially generating more revenue. If the average session length starts to drop, this may be a sign that you need to take action, such as introducing new games, implementing new marketing strategies, or updating and optimizing existing games to increase player engagement.

Additionally, average session length can be cross-referenced with user preferences to find out which types of games attract players to longer gaming sessions. This information is valuable in determining which game types are more popular with players and which game types should be prioritized in future game development and marketing strategies.

Overall, by monitoring and analyzing average session length, you can better understand your players' behavioral patterns and how they interact with your platform, allowing you to develop more effective strategies to increase player satisfaction increase their engagement, and ultimately increase the revenue of the betting platform.

Marketing cost per customer

Cost per acquisition (CPA) is the average amount of money it takes to acquire a new user. This is a very critical metric that helps you measure the effectiveness of your marketing strategy. To ensure that your marketing efforts are not only worth your time but also your budget, it’s important to track their performance and perform in-depth analysis. By analyzing CPA in detail, you can get a clear picture of how much money is required on average to be successful.

There are several different ways to generate traffic for iGaming, each with its own unique benefits and challenges. Search Engine Optimization (SEO) is a very common and effective way for iGaming to attract new visitors. This requires a deep understanding of keywords, website architecture, and content optimization, but if done well, it can bring steady traffic over the long term.

Paid advertising and link buying are two ways for iGaming to improve its image, especially in some gambling markets where gambling advertising is strictly restricted. These two methods can help iGaming stand out in a highly competitive market.

However, in the current market environment, there is one form of advertising that is rapidly emerging, and that is affiliate advertising. Affiliate partners such as bloggers and streamers redirect their traffic to gaming platforms, which not only helps attract new users but also increases brand awareness and credibility

Average revenue per user (ARPU)

Average revenue per user (ARPU) is an important business metric that indicates how much revenue each player brings to a company during a specific time period, or how much loss a player may have caused. Calculating ARPU is relatively straightforward by dividing a betting platform’s total revenue over a given time period (usually a month or year) by the number of active bettors during the same time period. This calculation will show how much revenue each player generates for the company on average. This data is extremely important to the company because it can help the company understand its profitability and determine future development strategies and marketing directions.

Customer Lifetime ValueLife Time Value (CLV)

Customer Lifetime Value (CLV) is an extremely important metric that measures the total revenue generated by players during their stay on your betting platform. To accurately calculate CLV, you need to multiply your monthly average revenue per user (ARPU) by the average player’s lifetime on the platform.

When you cross-reference customer lifetime value by player segmentation, you’ll be able to see which specific demographics are likely to provide the greatest value to your betting platform. With an in-depth analysis of historical CLV, you can better predict future CLV, helping you plan your retention strategy more precisely.

To fully assess whether your marketing strategy is effective, you can compare customer lifetime value (CLV) to cost per customer acquisition (CPA). Compare the cost of acquiring a new betting user to the value that the user brings to you; you cannot invest more in attracting players than they spend on slots or sports betting.

Since the size of your CLV is directly dependent on ARPU and player retention, if you notice that your CLV seems to be declining, you should take a closer look at how much your players are spending and how long they are spending on your platform.

In order to develop your growth strategy and come up with new solutions, it is crucial to track, break down, and analyze data related to player behavior. The iGaming Key Performance Indicators (KPIs) detailed above provide iGaming platform operators with the various lenses they need to look at in order to gain a clear understanding of how their business is functioning so they can make informed decisions.

A simple and straightforward way to calculate Customer Lifetime Value (CLV) is by multiplying each player's Net Gaming Revenue (NGR) by their lifetime in months.

Net Revenue / Deposit Ratio

A low ratio may indicate a high number of winning players or other underlying factors. Conversely, a high ratio could suggest that players' spending levels exceed the usual patterns, which may require further adjustments or follow-ups by the operations team.

Betting / Deposit Ratio

This ratio indicates how frequently players use each deposit to place bets. A higher value suggests that players take longer to lose their funds, while a lower value may indicate that players are losing money more quickly. If this ratio significantly deviates from the standard deviation, it could signal potential issues with the game, requiring further inspection and adjustments.

Withdrawal / Betting Ratio

This ratio provides a reliable method for predicting the expected real losses from gaming activities. By analyzing this ratio, the operations team can better forecast and manage the financial stability of the gambling platform, ensuring both a positive player experience and the platform’s sustainable operation.

Summary

Running a betting platform is a challenging task and great returns can only be expected if the betting business is properly managed. A key part of effective management is a careful analysis of accurate information in order to make informed decisions.

TC-Gaming has accumulated 16 years of experience in the white label iGaming industry. As a well-established white label iGaming company, our business covers Vietnam, Cambodia, Thailand, Myanmar, Malaysia, India, Indonesia, Brazil, Japan, South Korea, China, and other overseas countries. country, providing multilingual services and system conversion. With our profound accumulation in the iGaming market, we have a deep understanding and analysis of the iGaming market.

With a highly skilled R&D team and passionate pre-sales and after-sales teams, we not only provide templates specially designed for iGaming to cater to the tastes of local gambling players but also support multi-language to meet the needs of different overseas packages. TC-Gaming White Label iGaming has always adhered to the concept of all-around technology and services to provide support to all white label iGaming customers. We adhere to the principle of credibility first and technology as the support, continue to improve to meet customer needs and work hand in hand with customers to create and build success.