IFRS18 D.Labs: Gaming

Net gaming revenue, contribution and adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) are used extensively with boards, lenders and investors. Where such a measure is a subtotal of income and expenses used in public communications and conveying management's view of performance, it falls within the MPM requirements: a stated calculation, a reconciliation, and the tax and non-controlling interest effect of each reconciling item. Certain measures fall outside the definition, and judgement is required.

Where operating expenses are presented by function, as is common in the sector, quantitative analyses of specified natures: depreciation, amortisation, employee benefits, and impairment losses and reversals, are required in the notes. Systems may need adjustment to capture this.

Player incentives, jackpot contributions, affiliate and revenue-share arrangements, chargebacks, and platform and content costs may require separate presentation where their characteristics are dissimilar, and aggregated line items require informative labels.

Gaming duties are generally computed on gross amounts rather than taxable profit and fall outside IAS 12 Income Taxes, remaining within the operating category consistent with current practice. The question is whether duty warrants a separate line item and how it is labelled.

Exchange differences follow the category of the items that gave rise to them. A 2026 agenda decision addresses intragroup monetary items, relevant to multi-licence groups.