Why tracking player LTV is important
Lifetime Value (LTV) - the player's projected contribution to revenue/margin over the entire life cycle. In gambling, LTV is a reference metric for marketing, product and risk management: it is used to decide how much you can pay for attraction (CAC), how to build bonuses, who and how to reanimate, where to increase retention and when to stop ineffective channels. The main thing is to count LTV at the cohort level, in relation to margin and take into account compliance/Responsible Gaming.
1) What gives a business LTV tracking
1. Budget and auctions: you understand how much you can pay for installation/registration/deposit without going into negative territory.
2. Channel optimization: see channels with high LTV: CAC and reallocate budgets.
3. Personalization and CRM: segments on the expected LTV receive different frequencies, offers and care.
4. Bonus policy: adjust vagers/cap/eligibility for the real economy, avoiding overspending.
5. Antifraud/risk: Distinguish "spikes" from toxic behavior, introduce limits and checks where it pays off.
6. Product solutions: see which features increase retention and monetization on a long, not just first deposit.
2) Base: LTV definitions and levels
LTV gross (GGR-LTV): cumulative Gross Gaming Revenue from the player.
Margin LTV (Net LTV): GGR − bonuses − payment fees − operating direct costs − returns/chargebacks.
Forecast LTV (pLTV): expected margin over N days/months horizon.
Recommendation: For marketing solutions, use Net LTV and compare it to full CAC, including bonus costs and fee providers.
3) How to count LTV correctly: Approaches
3. 1 Cohort approach (reliable classics)
Group players by activation/first deposit date (D0).
Build margin accumulation by day/week: D1, D7, D30, D90, D180, D365.
Compare cohorts by channel, GEO, creative, device.
3. 2 Prediction models (when there is little history or need faster)
Rolling medians/build-up curves: LTV tail approximation based on past cohorts.
Segment models: pLTV as a function of early signals - source/creative, time to ACC/deposit, session frequency, favorite verticals, re-deposit rate.
Surrogate metrics of early monetization: D7-LTV → multiplier to D90/D180 (if the shape of the curve is stable).
Important: any model should be audited and regularly retrained - seasonality and events change behavior.
4) Horizons and comparison rules
For media solutions in performance, D30/D60/D90 horizons are practical; strategic overviews - D180/D365.
Compare LTV and CAC on the same horizon and in the same definition (currency, margin, rate).
Consider the time value of money for long horizons (discounting) if the comparison comes with long payments.
5) Formulas and landmarks
Cohorts:- 'LTV _ N = Σ (Margin _ i to day N )/Number of players in the cohort'
- `ROMI_N = (LTV_N − CAC) / CAC`
- `LTV_N ≥ 1. 5 × CAC 'on short horizons (with risk/variability margin); target long horizon is' ≥3× 'for stability.
6) What makes up the margin in iGaming
GGR: bets − winnings (by providers and verticals).
Cons: bonuses (fact, not face value), payment commission, provider-fee, fraud/chargeback, cost of support (according to SLA).
Adjustments: returns, Responsible corrections (limits/self-limits), tax features by GEO.
7) How to use LTV in different functions
Marketing/UA
Source/Creative Bids = Function'pLTV _ D30' and 'CAC'.
Low LTV channel clipping: CAC, winner scaling.
CRM/Retention
The frequency and type of communications depend on pLTV and RG status.
Win-back and upsail - by segments with high return potential.
Bonus policy
Personal mouthguards/vagers based on segment and expected LTV (ethical, non-abusive).
Stop-loss on negative economy promo.
Product/UX
Prioritization of features affecting D7→D30 retention (onboarding, payment scenarios, assistance and FAQ, support speed).
Risk/Antifraud/Responsible
The logic of checks and limits takes into account value and risks: protection against toxic monetization, transparent ways of self-restraint.
8) Dashboards and report structure
Cohort showcase (by week):- 'cohort _ start, geo, source, campaign, device, size, players, LTV_D7/D30/D90/D180, CAC, LTV: CAC, payback_day, ARPPU, retention D1/D7/D30, player bonuses, payment fee, complaints/unsubscribes'
- LTV accumulation curves by channel.
- LTV confidence interval ladder by campaign.
- Heat map LTV: CAC by GEO × device.
- ROMI fact/plan, payback period.
9) Frequent mistakes and how to avoid them
Compare LTV with "stripped down" CAC. → Consider full CAC: media, creatives, bonus incentives, fee.
Mix horizons → LTV_D30 cannot be compared to full cycle CAC - either discount or match short horizons.
Average hospital temperature. → Cohorts only: date, channel, GEO, device, creative.
Fraud/Bonus Hunter Distortion → Filters and Markups in Data, Separate Cohorts
Ignoring Responsible. → LTV should not push for risky communication; limits and transparent terms are a priority.
Blinded to models. → Validation on holdout cohorts, recalculation every 2-4 weeks.
10) How to raise LTV ethically
1. Onboarding and help: understandable CUS/deposit steps, chat 24/7, FAQ at the question site.
2. Payment experience: local methods, withdrawal time ranges, status tracker.
3. Content and navigation: catalogs, collections, filters by mechanics/providers, pages "How it works."
4. Personalization: recommendations for interests (without pressure), notifications about changes in conditions/rules.
5. Responsible tools: time/deposit limits, self-exclusion, reminders.
6. Speed and stability: mobile Web Vitals, no failures in critical steps.
11) pLTV mini-technique from early signals (example)
Fichi D0-D3: time before KYC, depth of onboarding, source/creative, device, first sessions, did you try demo/guide, deposit method.
Model: gradient boosting/log regression with monotonic constraints on key factors (for interpretability).
Conclusion: pLTV_D30 as a scalar, bids and CRM frequencies - as a function of this value (with security thresholds and RG rules).
12) LTV Analytics Launch Checklist
- GEO GGR/Margin/Bonus/Fee definitions agreed
- Event set up: deposits/withdrawals/bonuses/commissions/chargebacks
- Cohort showcases and LTV accumulation curves plotted
- CAC is considered complete (media, creatives, bonuses, fee, agency)
- Dashboards by Channel/GEO/Device/Creative
- pLTV model validated in holdout cohorts
- Responsible/Limits Policy connected to CRM scripts
- Model/Metric Update Schedule (weekly/monthly)
13) 30/60/90 day implementation plan
0-30 days - foundation
Agree metrics/horizons; collect a showcase of D0→D90 cohorts.
Launch LTV/CAC/ROMI base dashboards; check the integrity of bonuses and fee.
Enter comparison rules and payback thresholds for the purchase.
31-60 days - forecast and decision-making
Train the first pLTV model on early features, implement in procurement/CRM.
Launch A/B with frequency/offer rules for pLTV segments (with RG control).
Enter a payback day report and reindex channel budgets.
61-90 days - maturity
Add discounting and D180/D365 to strategic reports.
Implement holdout groups to evaluate CRM increments and rebates.
Automate alerts: LTV drop: CAC, increase in the share of bonus hunters, GEO distortions.
14) Mini-FAQ
Does a long horizon need to be decided on an auction today?
A correct pLTV_D30 and a stable factor up to D90 are sufficient - with regular validation.
Is it possible to compare channels without taking into account bonuses?
No, it isn't. Bonuses are part of the cost of attraction and maintenance.
Why do different GEOs give different LTV curves?
Regulation, payments, behavioural patterns and taxes - only compare comparable cohorts.
LTV is the compass of the iGaming business. It helps you spend money where it pays off, build an honest bonus policy, develop the product, retain players and comply with Responsible Gaming. Count LTV on margin and cohorts, use short horizons for quick decisions and long horizons for strategy, connect pLTV to media and CRM, keep common comparison rules with CAC - and your decisions will become predictably more profitable and sustainable.