Revenue and metrics

Contribution margin: what is left after variable costs

Contribution margin (contribution profit) is NGR minus the variable costs that grow with play: game provider fees, payment fees and affiliate payouts. It shows how much the casino really keeps from a player, segment or offer.

Yevhen SychovOctober 2026

Formula and example

Contribution margin = NGR minus game provider fees, payment fees and affiliate payoutsFor example, a segment's monthly NGR is €7,000, and fees and payouts come to €3,600: the contribution margin is €3,400.
Segment for the monthAmount
GGR€10,000
Bonuses that became real money, and gaming taxminus €3,000
NGR€7,000
Game provider fees, 10% of GGRminus €1,000
Payment fees, 2% of €25,000 in depositsminus €500
RevShare to the affiliate, 30% of NGRminus €2,100
Contribution margin€3,400

Bonuses and gaming taxes are already deducted in NGR. If your NGR does not deduct taxes, deduct them here, but only once.

How to use it

  • Segments and sources: at the same NGR, an affiliate player leaves the casino less than a player who came on their own: part of it goes to RevShare.
  • Games and offers: an offer in games with a high provider fee, such as live casino, leaves less money at the same GGR.
  • Campaign effect: contribution margin per player in the offer group minus the same figure in the control group. The bonus cost is already deducted in NGR.

Common mistakes

  • Judging by GGR. A segment with high GGR but expensive fees and RevShare can leave less than a modest segment without them.
  • Deducting twice. Taxes or fees that are already in NGR under your definition are not deducted a second time.
  • Adding fixed costs. Salaries, the office and the fixed platform fee do not grow with play. They are covered from the total contribution margin, not split across players, otherwise the segment comparison gets distorted.
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