What is ARPU and ARPPU?

ARPU (Average Revenue Per User) measures the average revenue generated per active user over a given period (day/week/month). It’s useful for comparing monetisation efficiency across brands, markets, channels, or products (casino vs sportsbook).

Typical formula:

ARPU = Total revenue in period / Number of active users in period

ARPPU (Average Revenue Per Paying User) focuses only on users who generated revenue (e.g., deposited and wagered), helping isolate monetisation among payers.

Typical formula:

ARPPU = Total revenue in period / Number of paying users in period

Notes for iGaming:

“Revenue” may mean GGR or NGR depending on reporting standards-always specify.
ARPU is influenced by retention, deposit frequency, average stake, and game mix.

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Related Terms

KPI (in iGaming)

A KPI (Key Performance Indicator) is a metric chosen to track progress towards a business goal. In iGaming, KPIs cover revenue, player acquisition, retention and operations.

NPS (Net Promoter Score)

NPS (Net Promoter Score) measures how likely players are to recommend a brand, based on one question rated from 0 to 10.

Conversion Funnel

A conversion funnel is the sequence of steps a visitor takes to become a depositing player, with the number of users counted at each step.

Player Segmentation

Player segmentation is dividing the player base into groups with similar characteristics, so that content, communication and support can be set up per group.

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