Formula and example
Reinvestment rate = all rewards to the player / their GGR for the period x 100%A VIP player brought in €20,000 of GGR and received €3,000 in bonuses, cashback and gifts: reinvestment is 15%.
Reinvestment vs Bonus Rate
Bonus Rate counts only bonuses. Reinvestment is broader: it includes gifts, events, trips and other spending on the player. For VIPs the full figure matters more, because most of the attention they get is not bonuses.
How to use it
- Thresholds by segment: VIPs get a larger share, mass-market players a smaller one. The total stays within the budget set against total revenue.
- By manager: reinvestment for the portfolio of each VIP manager, next to its NGR.
- On theoretical revenue: in a month of big wins, a player's actual GGR drops. Also calculate reinvestment on theoretical revenue, so you do not punish the player for being lucky.
Common mistakes
- Counting only bonuses. Gifts and events stay outside the budget, and the VIP programme costs more than it seems.
- One rate for everyone. For a low-margin player, the same reinvestment share can push them into the red.