GGY stands for Gross Gambling Yield, which is formed once the casino pays out the money won by the players. It implies the deduction of winning bets from the total amount of stakes and other fees in the game. GGY doesn't include the costs of other services, such as the hotel or bar in land-based casinos or online tech support. The amount paid to the player as compensation is also not included in GGY.
Revenue Share is a model of an affiliate program, where the partners receive a share of the profit they brought to the customer. For example, the affiliate attracts gamblers to online casino and receives a percentage of their losses.
Revenue Share GGY indicates a part of the casino's income, which is divided between shareholders, affiliates and the third parties that collaborated with the casino. This is one of the key characteristics used to determine the profitability of the gambling resource, as well as its tax rate.
It is also important to distinguish such terms as Revenue Share GGY and Proprietary GGY. Proprietary GGY also refers to the gross gambling yield received by the casino.
It is deducted from the total casino income, and it includes all the bets lost by players. It also involves the percentage of insurance and entrance fees often used in poker. To put it simply, Proprietary GGY is a percentage of the direct casino profits.
The most important thing about Proprietary GGY is that it is not available to shareholders as part of the revenue agreement.
Difference between Revenue Share GGY and Proprietary GGY
The main difference between Revenue Share GGY and Proprietary GGY is that the first term involves the amount of the gross casino yield, which is necessarily divided between the partners and shareholders, while the second refers to the income that belongs only to the casino owner.