Acquisition economics

Player LTV & acquisition payback

Turn CAC, monthly NGR per player, churn and margin into lifetime value, the LTV:CAC ratio and how many months acquisition takes to pay back.

Inputs

CAC — cost to acquire a depositing player

Monthly NGR per active player

Average net gaming revenue an active player generates each month.

Monthly churn18%

Share of active players who stop depositing each month. Average lifetime ≈ 1 / churn.

Contribution margin on NGR55%

What is left of NGR after affiliate, content, payment and tax cost — the part that pays back CAC.

Horizon24 mo

Result

LTV:CAC

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Payback

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Avg. player lifetime—

LTV over horizon—

LTV over full lifetime—

Profit per player (horizon)—

Cumulative contribution per acquired player

CAC

A smooth-decay model: it assumes a constant monthly churn and a flat monthly NGR. Real cohorts spike early then flatten, high-rollers skew the average, and reactivation adds tail value. Use it to compare scenarios, not as a forecast.