There are a number of terms used within the gambling industry that are different to those terms commonly used when describing other industries. Even within the gambling industry, terms may vary depending on which sector of the industry is being described, for example, a land based casino operator might use different terminology from a lottery operator.
Kindred uses the following key terms to describe its business.
Amount of bets placed on sporting events and games.
LESS Pay Outs
Total amount paid out to customers.
LESS Free Bets
Free Bets are bonuses granted or earned in connection with customer acquisition
EQUALS Gross Winnings Revenue
Gross winnings revenue on Sports betting is defined as the net gain or loss from bets placed. Within Casino & Games the Group defines GWR as the net gain from bets placed and Poker GWR reflects the net income (“rake”) earned from poker games completed. GWR across all products is reported net of the cost of promotional bonuses.
LESS Cost of Sales
Cost of sales includes betting duties, marketing, revenue share and other cost of sales.
EQUALS Gross Profit
Gross Profit provides a reflection of what gambling companies receive as net income, from which both their fixed and semi-variable-operating costs must be met.