Games and product

iGaming: how the online gambling industry works

iGaming (online gambling) is the industry of gambling over the internet: casino, sports betting, poker and lotteries. Operators accept players under a licence, B2B companies supply them with platforms, games and payments, and revenue is measured by GGR and NGR.

Yevhen SychovOctober 2026

How the market works

The main verticals are online casino (slots, live casino, crash games), sports betting, poker and lotteries. Companies in the market fall into three groups:

  • B2C, the operator: a casino or sportsbook brand. It accepts players and money under a licence and runs marketing, CRM and VIP.
  • B2B, the suppliers: platforms, game providers, aggregators, payment providers (PSPs), KYC services and CRM systems. They provide the operator with technology, games and payments.
  • Partners: affiliates and media buyers bring in players on CPA or RevShare.

How revenue is calculated

NGR = GGR minus bonus cost minus taxesFor example, players bet €1,000,000 and won €960,000: GGR is €40,000. Bonuses cost €6,000 and tax was €4,000: NGR is €30,000.

GGR is bets minus winnings, while NGR shows what is left after bonuses and taxes. The operator then pays game providers, the platform, PSPs and partners, and many of them take a percentage of GGR or NGR. Bonuses are measured as a share of GGR: that is Bonus Rate.

Licences

An operator works under a licence: a local one in a market with its own regulation, or an international one valid in several countries, except restricted ones. In return, it meets the requirements: KYC and AML, responsible gambling, certified games, geo-blocking. In a number of markets, B2B suppliers need their own licence too.

Operator teams

  • Product: the site, lobby, cashier and player account.
  • CRM and retention: segments, trigger flows, bonuses and what they cost.
  • VIP: personal managers for the most valuable players.
  • Support: answering players and, in a strong team, selling as well. More in the breakdown Support that sells.
  • Payments: PSPs, deposit approval rate, withdrawal speed.
  • Compliance: KYC, AML, responsible gambling, licence requirements.
  • Marketing and partners: brand, traffic, affiliate management.

Common mistakes

  • Measuring the business by deposits. A deposit that went back to the player as a withdrawal is not revenue. Players, channels and offers are compared by NGR.
  • Buying retention with bonuses. Fast withdrawals and clear rules keep players better than bonuses do, and a bonus without cost control eats into GGR.
  • Leaving compliance to the legal team. Self-excluded players, players with limits and players showing risk markers get no promotions. CRM, VIP and marketing have to watch this every day.
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