Quick answer
An NGR waterfall starts with the contractually defined gross amount, subtracts only deductions allowed by that agreement, and shows the resulting commissionable base. The useful question is not whether a deduction is common; it is whether its basis, timing and evidence match your terms. Build the bridge before applying the revenue-share percentage.
Affiliate finance managers checking why a revenue-share statement differs from expectations.
Start with the agreement rather than an industry formula
NGR is a label whose practical meaning depends on the agreement. Two programs may use the same abbreviation and subtract different items or calculate charges on different bases. Copying a formula from a presentation into the finance workbook can therefore produce a plausible total that has no contractual relevance.
SISU's public terms define an administration fee and address product aggregation. bet365's terms separately enumerate deductible costs. These are examples of variation, not a combined list of items every operator may subtract. Our recommended first step is a contract dictionary: source measure, deduction name, formula, applicable product, effective date and reference to the relevant clause. Flag anything that has no written basis.
References: SISU Partners — Terms and Conditions; bet365 Partners — Terms and Conditions
Define the starting figure and signs
Ask whether the gross input already reflects player winnings, returned stakes or settled results. If winnings are already netted from gross gaming revenue, subtracting them again understates the base. Define positive and negative signs explicitly, especially for refunds and corrections imported from different systems. Test one known record before processing a full month.
Record the accounting period, settlement convention and reporting currency beside the starting total. An event settled after midnight can fall into different periods across systems. A currency conversion can also create a mismatch even when every original transaction agrees. Neither difference should be fixed by inserting a balancing “other” deduction that obscures the real cause of the variance.
Show a synthetic deduction bridge
Synthetic example: the agreed gross revenue is €20,000. The illustrative agreement permits €2,000 of promotional costs, €1,000 of payment costs and €3,000 of applicable duty in this period. The commissionable NGR is therefore €14,000. At a synthetic 30% share, commission before other contractual adjustments is €4,200. These figures are invented, not program terms or expected performance.
If a further €500 administration charge appears, the task is to establish whether it is authorized and already included in another line. Where valid and additional, it reduces this example's commission by €150. Where duplicated or unsupported, the reviewer should raise an exception instead of quietly accepting a lower total. Percentage arithmetic comes after deduction validation.
| Synthetic waterfall | Amount | Running base |
|---|---|---|
| Gross revenue | €20,000 | €20,000 |
| Promotional costs | −€2,000 | €18,000 |
| Payment costs | −€1,000 | €17,000 |
| Applicable duty | −€3,000 | €14,000 |
| 30% share | €4,200 | Commission |
Check the base of percentage deductions
A fee described as ten percent is incomplete until its base is specified. Ten percent of gross revenue differs from ten percent of revenue after promotions; the order matters when the formula is sequential. Write each percentage as a complete expression and preserve the intermediate value. Never infer the basis from whichever interpretation recreates the statement.
For each line, request the relevant aggregate ledger or calculation evidence, subject to access restrictions. Ask whether a fee represents an actual cost, an agreed allocation or a fixed commercial charge. The distinction helps explain changes between months. It does not itself decide whether a charge is allowed; that remains a question for the agreement and the responsible contractual reviewer.
Control product pools and retrospective adjustments
Separate sportsbook, casino and other products until the pooling rule is established. A negative result in one product can change the combined base if the agreement aggregates products. If calculations are separate, the same presentation would misstate commission. Keep carryover outside the current-period deduction bridge until you know whether it is measured in revenue or commission units.
Show retrospective changes as dated adjustments referencing their original periods. Do not replace a historical export and lose the audit trail. A correction can be valid while still requiring explanation to the affiliate. The workbook should distinguish an error correction, a late source event, a contractual adjustment and a change in commercial terms, because those require different follow-up actions.
Close the waterfall with an evidence register
Our editorial recommendation is to give every deduction an owner, a contract reference and an evidence location. Finance validates totals, the commercial owner confirms the applicable terms, and technical operations investigates source mismatches. A single owner should approve the final bridge so unresolved questions cannot disappear between teams.
Publish the starting amount, each deduction, eligible NGR, rate and commission in the partner-facing explanation where the agreement and permissions allow it. Keep customer-level information restricted. Review the dictionary when a market, product or contract changes, not merely at year end. The aim is a reproducible calculation that another authorized reviewer can follow without relying on the original spreadsheet author's memory.
Working template
| Control or input | Value or evidence | Responsible owner |
|---|---|---|
| Starting measure and period | — | Finance |
| Promotion deduction and clause | — | Commercial |
| Payment costs and evidence | — | Finance |
| Tax or duty basis | — | Finance |
| Administration charge and base | — | Finance |
Frequently asked questions
Are all NGR deductions standard?
No. Public programs illustrate different definitions and fee structures. Use the applicable agreement and written amendments. A cost being common elsewhere does not prove it belongs in your commission calculation.
Can I use deposits as gross revenue?
Not unless the agreed model explicitly uses that measure. Deposits are cash movements; gross gaming revenue is a different measure. Confirm the report dictionary before building the deduction bridge.
Where should carryover appear?
Show it separately from current-period deductions and state its units. Apply the agreement’s pooling and carryover rules after establishing the current-period base, unless the written formula explicitly requires another sequence.
Sources and scope
Sources checked September 22, 2026. Numerical examples are illustrative unless explicitly identified otherwise.
- SISU Partners — Terms and Conditions — An example of defined deductions and aggregation across products. Checked September 22, 2026.
- bet365 Partners — Terms and Conditions — Program-specific commission structure and payment terms; not universal affiliate rules. Checked September 22, 2026.
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