What is the difference between gross gaming revenue and net profit for operators?

• A. GGR is total wagers minus winnings; net profit subtracts operating costs and expenses.
• B. GGR equals net profit.
• C. GGR is profit after taxes.
• D. GGR is the same as revenue.

Answer: (A)

Gross gaming revenue is the operator’s take from gaming activities, before most costs are subtracted. It’s calculated as total wagers (the money players bet) minus the winnings paid back to players. This amount represents the “house win” from all gaming activity.

Net profit, on the other hand, is what’s left after all operating costs and expenses are subtracted from that GGR. That includes staff, facility costs, marketing, licenses, taxes, technology, and other overhead. Because those costs reduce what remains, net profit is smaller than GGR.

So the best description is that GGR equals wagers minus winnings, while net profit subtracts operating costs and expenses from that GGR. The other statements mix up where costs and taxes fit in or equate GGR with overall revenue or profit after taxes.