Formula and example
The rate depends on the provider, the market, volume and game type: for live casino it is usually higher than for slots. The markup is charged by the aggregator if the games are connected through it.
What base it is charged on
The key question in the contract is not the percentage but the base. The provider often calculates GGR on all bets, including bets with bonus money, while the casino may count only real-money bets in its own report. How free spins are counted is also fixed in the contract. For example, €1,000,000 was bet on the provider's games, €200,000 of it with bonus money, with a 4% hold. On all bets, GGR is €40,000 and a 12% fee is €4,800; on real-money bets, it is €32,000 and €3,840: a difference of €960 a month.
Also check whether a month's negative GGR carries over to the next one. Without a carry-over, the operator pays the fee in positive months and absorbs the negative ones itself.
The fee and a game's revenue
Compare games not by GGR but by contribution margin: what is left after the fee and bonus cost.
Common mistakes
- Reading the rate, not the base. The same 12% on all bets or on real money only produces different payments.
- Comparing games by GGR. In the example, slot B brings in €1,900 more than slot A despite its lower GGR.
- Cutting the lobby by fee at launch. Until there are statistics, games are chosen by availability in the market and player interest. Fees are compared once there is volume.