If you’ve considered starting an online casino business, you’ve probably heard the term ‘white label solution.’ For aspiring entrepreneurs and users who want to enter the gaming industry or just know more about how it works, understanding the features of white label platforms and the tools they provide can be extremely useful.
These tools not only clarify the functioning of a casino platform, but also streamline the process of launching and expanding a brand-new casino business. With this guide, Betcasinoscript wants to provide you with a comprehensive and detailed analysis of these solutions. We’ll cover how such platforms work, the associated costs, their pros and cons, and additional tips to keep in mind.
What Exactly is a White Label Casino Solution?
White labeling does’t pertain only to the iGaming industry: it is a prevalent concept among various industries.
Basically, white labeling allows a company to take a product or service and rebrand it as their own. This definition gives you a hint on what the companies that provide white labeling do: they offer a pre-made, pre-licensed, fully functional casino platform. The aspiring entrepreneur can rebrand the provided platform to use it as an independent business.
Both parties, the white label provider and the purchasing company, share the profits generated by the newly launched casino – but you should consider that fees and costs can change according to the agreement signed with the provider.
Now that we know what a white label solution is, let’s dive deeper into how it works.
How the White Label Casino Platform Work
If you’re planning to start a new online casino business, you should keep this mini step-by-step guide in mind, since B2B casino platform providers tend to follow the same process. Of course, details can change – especially those concerning costs – according to the provider, but this guide will offer you a comprehensive understanding of what you should expect when entering the iGaming industry via white labeling:
- Initial Purchase and Setup: your journey begins with purchasing the platform from a parent company. This initial phase might involve a setup fee, which gives you the license to use the company’s technology and services.
- Receiving the Essentials: once the initial transaction is complete and the deal signed, the parent company supplies a comprehensive package that includes everything needed to launch your own online casino. This package can differ based on the deal but generally involves:
- Licensing: such as MGA, Curacao eGaming, UKGC, etc., to operate legally.
- Web-Hosting: providing the digital space where your online casino will reside.
- Platform: the underlying technology that powers the casino.
- Casino games (e.g. slots, card and table games, live casino games, etc.)
- Game Library: includes various types of casino games like slots, card and table games, live casino games, and more.
- Financial Infrastructure: this comprises the payment processing system, fraud detection, and prevention mechanisms.
- Consultation Services: expert advice on how to optimize your online casino business.
- Back-End Management: the provider manages the back-end tasks. They take care of the tech side and make sure the casino works smoothly. Your deal might include extra help and services, but also in this case it depends on the type of agreement.
- Front-End Responsibilities: as the owner, you are in charge of the front-end aspects, which primarily involve marketing, branding, and customer acquisition. Your role is to attract users to the platform and engage them effectively. In some cases, the white label provider might help you with this by offering additional marketing services.
- Profit Sharing: the financial arrangement usually involves receiving a percentage of the overall profits generated by the new online casino. The remaining profit goes back to the white label platform supplier as part of the ongoing operational costs or as agreed in the contract. For instance, a white label provider might not ask you for an upfront commission, but a higher percentage of profits. As we mentioned, this always depends on the type of agreement.
White Label Casino Software in a Nutshell
In simple terms, white label means a new business gets an affordable ready-to-use product quickly. The provider gives all the services and gets more customers in return.
The Growth of Ready-to-Use Casino Platforms
Casinos have changed a lot over time. We went from big, flashy casinos you could walk into, to online ones you can visit from your computer or phone. But starting an online casino isn’t easy. There are many rules to follow and tech stuff to set up. That’s where ready-to-use casino platforms come in handy.
These platforms give people everything they need to start an online casino quickly. They have all the main features already set up. If you want to start a casino, you can pick one of these platforms and make it look and feel the way you want.
Many people, whether they’ve been in the casino business for a long time or are just starting, like using these platforms. They make things easier by taking care of the hard parts, like getting permission to run a casino or setting up ways for players to pay. This lets casino owners spend more time on things like promoting their casino and making sure players have a good time.
Table 1: Data on the evolution of the iGaming industry and white label solutions in recent years.
| STATISTIC | DATA |
|---|---|
| US mobile-based casino game spending growth | 16% rise, reaching over $4.8 billion |
| Revenue generated by Social Casino games during the Pandemic | Over $1 billion |
| Total growth value of social casino gaming by 2026 | $6.2 billion |
| Projected growth value of social casino gaming by 2026 | Over $7.5 billion |
| Market value of online gaming from 2011 to 2018 | Increased from $25 billion to $51 billion |
| Estimated cost to develop a white label casino game solution | Between $15,000 and $100,000 |
Who is Most Likely to Benefit from a White Label Casino Platform?
This type of business is best suited to those who do not have a large initial capital and don’t want to manage the several aspects and tasks related to maintaining an online casino – especially the legal ones.
A white label solution may be right for you if you:
- Are an entrepreneur
- Are new to the iGaming industry
- Do not have a lot of capital
- Do not want to go through the hassle of applying for, purchasing or maintaining a license
- Want to launch a business fast
- Not interested in spending a lot of time managing and maintaining casino operation
White Label Casino Cost
The cost of this type of casino gaming platform does vary from company to company. The costs of a white label casino typically depend on the products and services included in the package.
To give you a general idea of the cost to launch one of these platforms, it’s not uncommon for these solutions to range anywhere from $15,000 to $100,000. Beyond the initial startup costs, there may be other continual operation costs and service fees that may occur annually or more frequently, depending on the deal.
As previously mentioned, pricing varies from one company to the next. Therefore, the best way to find out exactly what costs you can anticipate in regard to initial investments and beyond, is to contact the company that interests you directly – and Betcasinoscript offers you more detailed information about different software providers.
With that said, launching a white label is still the cheapest option compared to launching a casino on your own.
White Label Casino Pros & Cons
There are both advantages of white label operation and disadvantages. Ultimately, whether or not it will be the most ideal choice for you will depend on your personal business goals, how much experience you have in the industry, and how much you want to be in control of the casino’s development and operation.
White Label Disadvantages
Minimum start-up capital
The initial setup cost and operation of a white label is cheaper than launching and operating a casino business from scratch.
Setup Costs Vary
The initial start-up costs may be lower than building your own business, but you aren’t likely to find a deal that is under $10,000.
Get a license without a hassle
You don’t have to go through the long and complex process of applying for a gambling license. You operate under the provider’s license or licenses. This is maybe one of the most appreciated aspects of white labeling.
Restricted selection of products and services
The supplier controls which products and services (games, payments, additional software) are included in the white label platform. Even if they have other content available, you might not have access to it.
Payment processing
A good white label solution provider handles all aspects of payments and payment processing for you. This includes risk management, fraud prevention and fraud detection.
Marketing restrictions
You may be in control of marketing, but the provider may still require you to adhere to certain strategies and promotional restrictions.
Avoid a lot of operational overhead
The successful operation of an online casino requires many elements from casino games software, payments, licensing, back end, front end and beyond. A white label supplier takes care of many of these aspects for you, delivering smoother operation.
Limited rights
You never fully own your online casino business and you will accept your limited rights to it from the start. You will need to share your profits and have to accept and implement any changes that the provider may make to its business model.
Quick setup and fast launch to market
Since white label platforms are pre-set and ready-to-go, setting up a brand and launching it often takes only a few weeks compared to the several months needed with non white label solutions.
High Competition
The iGaming industry is highly competitive, and white labeling services offering simpler solutions don’t reduce challenges. That’s why you should focus on branding, marketing, and customer retention to stand out.
White Label Casino Solutions vs Turnkey Solutions
White label online casino solutions are not the only way to enter the iGaming industry. There are other solutions that share some similarities with white labeling, but also target a different type of entrepreneur. Turnkey solutions are the alternative.
Both options have their own advantages, drawbacks, and customization levels, so knowing the differences is key if you’re looking to make an informed choice.
What are Turnkey Solutions?
Unlike white label casino solutions, turnkey solutions require a more hands-on approach.
Entrepreneurs opting for turnkey solutions will need to be actively involved in the customization and management of the platform. This includes the selection of games, integration of payment methods, and even the nitty-gritty of licensing and regulations.
Table 2: Comparing the features of white label and turnkey online casino solutions.
| ASPECT | WHITE LABEL | TURNKEY |
|---|---|---|
| DESCRIPTION | White labeling offers a quicker route to market with a pre-configured platform | Turnkey offers more control over various aspects of the casino |
| FEATURES | With white labeling you get:
|
With turnkey solutions you get a customizable platform that aligns with brand identity and target audience |
| BENEFITS | White labeling involves:
|
Turnkey solutions give:
|
| DRAWBACKS | White labeling might not offer extensive customization | Turnkey solutions require:
|
| IDEAL FOR | White labels are ideal for entrepreneurs seeking quick, cost-effective entry with minimal hassles | Turnkey casino solutions are ideal for entrepreneurs desiring more control, even with more time and resource investment |
Key Features of White Label Casino Solutions
White label solutions should have some key features – otherwise, they won’t be really helpful if you want to enter the iGaming industry smoothly:
- Extensive game library
- Secure payment gateways
- Customer support
- Licensing and compliance
Additional features can include marketing and analytics tools. Effective marketing is key to the success of any online casino – as we mentioned, it will play a pivotal role in such a competitive market.
White label casino solutions often include built-in marketing and analytics tools, allowing operators to track performance, user engagement, and other key metrics. These insights can be invaluable for fine-tuning marketing strategies and optimizing the platform for maximum profitability.
Tips to Keep in Mind
Should you decide that a white label casino makes the most sense for you, here are a few tips to remember to make sure that this is truly the business path that you would like to pursue:
- Setup fees do not come cheap – Even though it may be more cost-effective to start one of these casinos compared to building one from scratch, setup fees can still be tens of thousands of dollars. A casino is a business and businesses are expensive to own and operate, especially at the start.
- Find out what services and products are included – Remember, not all white label platforms are created equal. Discover exactly what will be included in the package being offered. Do not assume that a certain service or product will be made available to you simply because it is advertised on the company’s site. Ask if you need clarification and don’t be afraid to negotiate if need be.
- Make sure you know what your cut will be – As you know, you will only receive a percentage of the overall revenue that your white label business generates. Make sure you find out exactly what that percentage will be and what the terms and conditions are before you sign any agreement with the provider.
- Limited licensing – Although your platform will come licensed, depending on the gambling authority from where this license was obtained, your brand may not be able to legally operate in certain jurisdictions. Make sure you know precisely what markets you can target as this can help you better build your brand.
- You are in charge of marketing, even when the provider gives you additional tools – You need to be prepared to market your casino if you want to stand out.
- Make sure you choose a legitimate provider – Not all companies who offer online casino products and services, white label or otherwise, can be trusted. Make sure you only do business with a legal and reputable company.
Final Thoughts
Choosing a white label casino solution is a strategic move for those looking to establish or grow their presence in the online casino industry. This comprehensive solution handles key elements including game variety, secure payment gateways, and customer support.
By leveraging the expertise of experienced providers, business owners can focus on marketing and customer engagement. As any other type of business, also white label online casinos have their cons, and you should carefully evaluate what can be the best option for you.
