What is LTV (Lifetime Value) in iGaming?

LTV estimates the total value a player generates over their lifecycle with the operator. It supports decisions on how much you can spend to acquire users (CAC) and still remain profitable.

Common approaches in iGaming:

Revenue LTV (GGR or NGR-based): Sum of expected GGR/NGR over time
Contribution/Profit LTV: NGR minus variable costs (promotions, payment fees, game provider fees, etc.)

Simplified model example:

LTV = ARPU × Average customer lifetime (periods)
or
LTV = (Average NGR per user per month) × (Expected months retained)

Key drivers: retention, deposit frequency, average stake, game mix, promotion dependency, and churn.

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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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