What Are the Advantages of Crypto iGaming Software text with the Lion Gaming logo
What are the Advantages of Crypto iGaming Software?
15 December, 2023
What are the Latest White Label Sports Betting Trends text with the Lion Gaming logo
What Are the Latest White Label Sports Betting Trends?
6 February, 2024

2 February, 2024

Master Your Metrics: Essential Sportsbook and Online Casino KPIs

In the dynamic and competitive world of online gaming, understanding your financial performance is crucial for success. Key performance indicators (KPIs) are the vital metrics that provide insight into your operation’s health and help you make informed decisions. This blog post delves into the essential sportsbook and online casino KPIs, empowering you to track progress, identify areas for improvement, and ultimately achieve your financial goals.

The power of KPIs

KPIs act as your financial compass, guiding you through the landscape of online gaming. By regularly monitoring and analyzing these sportsbook and online casino KPIs, you gain a clear understanding of how your operation is performing and where your strengths and weaknesses lie.

Essential KPIs for both online casinos and sportsbooks

Below is a list of some essential sportsbook and online casino KPIs that are relevant to both types of iGaming platforms. These KPIs should be diligently tracked in order to ensure your platform is operating as efficiently as possible. 

1. Player Lifetime Value (LTV)

LTV represents the total revenue a player is expected to generate throughout their relationship with your casino or sportsbook. A high LTV indicates that you are attracting and retaining valuable players.

LTV is calculated by multiplying Average Revenue per User (ARPU) by the average customer lifespan. For example, if the Average Revenue per User (ARPU) at your online casino is $500, and the Average Lifespan of a Player is estimated to be 24 months, the Player Lifetime Value would be: $500 × 24 = $12,000.

2. Customer Acquisition Cost (CAC)

CAC is the cost associated with acquiring a new player, including marketing and promotional expenses. A low CAC suggests that you are acquiring players efficiently, and is a key indicator of iGaming finance.

CAC is determined by dividing your total player acquisition cost (marketing and sales) by the number of new players in a specific period. For example, if the total cost associated with acquiring new players, including marketing and promotional expenses, at your online casino is $50,000, and during that period 500 new players were acquired, the Customer Acquisition Cost would be $50,000 / 500 = $100 per player. 

3. Gross Gaming Revenue (GGR)

GGR is the total amount of money wagered minus the winnings paid out to players. It reflects your overall financial health and the core income generated by your casino.

For example, if the total amount of money wagered at your online casino or sportsbook is $2,000,000, and the winnings paid out to players are $1,500,000, the Gross Gaming Revenue would be $2,000,000 – $1,500,000 = $500,000

4. Net Gaming Revenue (NGR)

NGR is the GGR minus bonuses, promotions, and other player incentives. This metric provides a clearer picture of your profitability after accounting for all player payouts.

For example, if the Gross Gaming Revenue (GGR) at your online casino is $500,000, and the total amount spent on bonuses, promotions, and other player incentives is $100,000, your Net Gaming Revenue would be $500,000 − $100,000 = $400,000. 

5. Return to Player (RTP)

RTP is the percentage of all wagered money that a slot or casino game will pay back to players over time. Maintaining a competitive RTP attracts players while ensuring sustainability.

RTP is calculated by dividing the total amount paid back to players by the total amount wagered, and expressing it as a percentage. For example, if the total amount wagered on a slot game or casino game at your online casino is $1,000,000, and the total amount paid back to players as winnings is $950,000, the Return to Player (RTP) would be $950,000 / $1,000,000 × 100 = 95%. 

6. Churn Rate

Churn rate measures the percentage of players who stop playing over a specific period. A low churn rate indicates that you are effectively retaining players.

Churn rate is determined by dividing the number of players who stopped playing during a specific time period by the total number of players at the beginning of that specific time period. The figure is then represented as a percentage. For example, if you started the month with 1,000 players and, by the end of the month, 100 players had stopped playing, the Churn Rate would be 100 / 1,000 × 100 = 10%.

Sportsbook-specific KPIs

In this section, we’ll outline the essential finance KPIs that are relevant specifically to sportsbooks. Again, these metrics should be followed closely to ensure your sportsbook is performing as it should. 

1. Handle

Handle represents the total amount of money wagered by players on sports events. A high handle indicates that your sportsbook is attracting a significant amount of betting activity.

For example, if the total amount of money wagered by players on sports events at your sportsbook is $5,000,000, that same figure would represent your Handle. 

2. Hold Percentage

Hold Percentage is the percentage of total wagers that the sportsbook retains as revenue. A healthy Hold Percentage is crucial for maintaining a profitable sportsbook operation.

Hold Percentage is calculated by dividing your revenue by the amount of total wagers, and expressing that number as a percentage. For example, if your sportsbook has a total monthly revenue of $50,000 and the total wagers placed amounts to $200,000, the Hold Percentage would be $50,000 / $200,000 x 100 = 25%. 

3. In-Play Betting Percentage

In-play betting percentage measures the share of bets placed on live sporting events. A high in-play betting percentage indicates the popularity of this feature and the need for a robust live betting platform.

In-Play Betting Percentage is calculated by dividing the total number of bets placed on live sporting events by the total number of bets and expressing it as a percentage. For example, if out of a total of 10,000 bets placed at your sportsbook, 1,000 bets were on live sporting events, the In-Play Betting Percentage would be 1,000 / 10,000 × 100 = 10%. 

4. Betting Margin

Betting Margin is the difference between the odds offered and the true probability of an event. A competitive Betting Margin attracts players while maintaining profitability.

Betting Margin is determined by subtracting total payouts paid from total wagers placed, and dividing that figure by total wagers placed. The figure is then represented as a percentage. For instance, if the total wagers at your sportsbook are $8,000,000, and the payouts to bettors amount to $6,000,000, the betting margin would be $8,000,000 – $6,000,000 x 100 = 25%. 

5. Number of Betting Markets

Offering a diverse range of betting markets across various sports attracts a wider audience and provides bettors with more options. Your Number of Betting Markets is simply how many markets are being offered through your sportsbook. 

6. Bet Slip Conversion Rate

Bet slip conversion rate measures the percentage of users who add bets to their bet slip and proceed to place those bets. A high bet slip conversion rate indicates a user-friendly interface and appealing betting options.

Bet Slip Conversion Rate is determined by dividing the number of users who proceeded to place bets after adding them to their bet slip by the total number of users who added bets to a bet slip, and representing that number as a percentage. For example, if out of 1,000 users who added bets to their bet slip, 800 proceeded to place those bets, the Bet Slip Conversion Rate would be 800 / 1,000 × 100 = 80%.

7. Time-to-Settle Bets

Time-to-settle bets is the average time it takes for your sportsbook to settle bets after the conclusion of an event. Faster settlements enhance user satisfaction and trust.

For example, if the total time taken to settle all bets after various events is 20 hours, and during this time, 2,000 bets were settled, the Time-To-Settle Bets would be 20 / 2,000 = 0.01 hours per bet. 

8. Mobile Betting Percentage

Mobile betting percentage reflects the importance of a responsive and mobile-friendly platform for your sportsbook. A high mobile betting percentage indicates the need to prioritize mobile optimization.

Mobile Betting Percentage is calculated by determining the percentage of total bets placed through mobile devices relative to the overall number of bets. For example, if 3,000 bets were placed via mobile devices out of a total of 10,000 bets, the Mobile Betting Percentage would be 3,000 / 10,000 × 100 = 30%. 

Taking action

By actively monitoring and analyzing these critical sportsbook and online casino KPIs, you can gain valuable insights into your online casino or sportsbook’s performance. Use this knowledge to:

  • Optimize marketing campaigns: Target high-value players and improve acquisition efficiency.
  • Enhance player engagement: Develop targeted promotions and personalize the gaming experience.
  • Manage risk effectively: Monitor player behavior and adjust risk management strategies as needed.
  • Make strategic decisions: Analyze data to inform your investment and expansion plans.
  • Benchmark against competitors: Identify areas for improvement and strive for industry leadership

Unlocking deeper insights

The Lion Gaming Finance Playbook provides a comprehensive resource for delving deeper into the world of iGaming finance. This valuable guide offers:

  • Detailed analysis of key KPIs: Each sportsbook or online casino KPI is thoroughly explained, including its definition, importance, calculation method, industry benchmarks, and actionable strategies for improvement.
  • Advanced financial modeling: Learn how to build financial models for evaluating investment opportunities, forecasting financial performance, and optimizing your operations.
  • Expert guidance: Gain insights from industry experts and learn best practices for maximizing profitability and achieving sustainable growth.
  • Case studies: Real-world examples illustrate how successful operators have utilized iGaming finance KPIs to drive their business success.

By downloading the full Ultimate iGaming Operator Finance Playbook, you will gain access to a wealth of knowledge and practical tools to empower you to:

  • Fine-tune your financial management: Optimize your operations for maximum profitability.
  • Maximize player lifetime value: Develop strategies to attract, engage, and retain high-value players.
  • Gain a competitive edge: Benchmark against industry standards and identify areas for differentiation.
  • Make informed decisions: Navigate the dynamic iGaming landscape with confidence.
  • Unlock your full potential: Achieve your financial goals and build a thriving online gaming business.

Ready to take your iGaming operations to the next level? Download the Lion Gaming Finance Playbook today and unlock the secrets to financial success.

Let's Get Started

Fill out the form below and a member of our team will reach out to you within 24 hours.
VP of Operations
c.lewis@liongaming.io

Christine Lewis

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Let's trade

Drop us your email please.

We want to show Phil from payments that this will actually convert.

    Let's trade

    Drop us your email please.

    We want to show Phil from payments that this will actually convert.

      Our address
      Lion Gaming Group Inc.
      855 2 St SW #3500
      Calgary, AB
      T2P 4K1 Canada