ARPU

ARPU (Average Revenue Per User) is total revenue in a period divided by the number of active users in that period — in iGaming, typically monthly GGR or NGR divided by monthly active players.

The formula is trivial; the definitions inside it are not. Operators must fix two choices and hold them constant:

• Revenue basis — GGR gives a gross view; NGR-based ARPU reflects bonus and tax load and is the better commercial signal;
• "Active" definition — any logged-in player, any bettor, or any depositor; each yields a different denominator and a different number.

ARPU is most useful comparatively: trending it per market, per acquisition channel and per cohort exposes where growth is coming from — more players, or more value per player. Because ARPU averages across everyone, it hides the concentration typical of gambling revenue; pairing it with ARPPU and VIP-segment reporting shows the real shape of the business.

Why it matters: ARPU is a standard line in board reporting, market entry models and platform business cases. Multiplied out with retention, it feeds LTV — the number that decides how much you can afford to pay for a player.