The cliche gambling is the hardest way to make easy money is not exclusive for players. Despite the gaming industry amassing record-breaking revenues over the years; regulations, taxes, and public opinion have become the tip of an iceberg of obstacles that only a few selected and well-established companies are able to sort.
Competition for worldwide customers is fierce, Those with better branding strategies are the ones making their share of the industry’s revenue and balancing it with operations can be tricky. For aspiring investors, white-label solutions have become a top choice to have a 100% working gaming operation that allows them to focus on the real business: attracting new customers.
While the term white label is usually associated with generic products in retail, in the gaming biz, white label gaming solutions are far from being labeled as such. But how different are they from the standard iGaming company? Let’s find out.
What is White Label?
White label gaming operations are no different from the standard casino, bingo hall, or sportsbook. They hold the same baking options, gaming interface and most importantly they hold a legitimate gaming license. The only difference is that white labels are pre-customized solutions by a company that creates the whole infrastructure and work in the technical details, and operation saving time, money, and stress in the long run in exchange for a cut of the revenues.
This allows the future operator to focus on the branding and marketing process instead of hurdling all the technical aspects of launching and upkeeping a gaming operation from scratch. Selecting and negotiating with game developers can be time-consuming, not to mention attending customer support.
The gaming solution provider offers a catalog for investors in the same fashion a building company provides the blueprints and designs for a family. You pick the games, banking, and jurisdiction (if allowed) and how operations will be managed or sourced, depending on if you are willing to hold or release control in that regard.
Considering that white label solutions are a proven formula (and we tend to stick to one) a concern that usually appears is how differentiated can be a solution from another. Solution providers are aware that customization is key for building an edge against other competitors and allow it to a certain degree. On good platforms, players can deposit with a credit card casino which is the most popular payment method in all countries. However, the gaming mixture will depend on the available providers they have signed, varying according to the new launches.
Putting license fees aside which can vary greatly from each jurisdiction; the cost of a white label solution will depend on the selected features the final operation will have. Like a house, the bigger you want it, the pricier it will be.
Usually, the offered gaming solution will come with a prefixed number of features that the client will adapt to its target market. Combining operations such as sportsbooks and casinos, and expanding or reducing the gaming option has its effect on the overall cost.
Finally, management of your new gaming operation has a fee, depending on how much the operative (and in some cases marketing) are delegated to the white label provider. These fees commonly are a share of the gross revenues, which can provide benefits for both as the better managed and promoted the gaming venture, better earnings will be perceived.
Probably the most attractive feature white label gaming solution offers, as license requirements and market opportunities vary from each jurisdiction. As a rule of thumb, the more prestigious the jurisdiction, the bigger markets become accessible, with increased processing length and costs.
Although White label providers can make the arrangements to obtain a license to its clients, they can also provide a direct sublicense under their responsibility. This will make the process of legitimizing the operation much easier but the responsibility will be shared; meaning that if one of the parties fails to comply with regulations, collaterals from penalties will be inflicted on both sides.
This makes the election process a critical one as white label providers can’t risk serving unscrupulous clients that can harm other clients by getting their license revoked. Clients themselves also need to contract a trusty provider that won’t compromise the whole business. Reputation is everything in the gaming industry.
- Proven business model. Investors don’t have to risk experimenting with what works and don’t for themselves, at least regarding operative concerns.
- Even being a proven formula it can be adapted to the client’s needs.
- Quick market entry. Putting operations into work can take an average of 6 weeks.
- Effective integration. even with separated service providers (games, banking) All the infrastructure components are tested to run smoothly minimizing service crashing risk.
- Operative Management included. future operators can delegate technical parts to the white label company and focus on promoting their business.
- Shared responsibility. failing to comply with regulations from one side will drag the other to face penalties.
- Limited differentiation. Operators need to focus on effective marketing strategies as the infrastructure and gaming offers are similar from one client to another.
- Operation dependant. All the Know-how of the gaming operator depends on the provider. making the switch to full independence a large barrier.
Opting for a white label gaming solution is a feasible investment to a quick step into the gaming industry. The initial cost will be higher but having professionals managing the technical issues will save larger costs in the long-term thanks to the effective integration of all its components.
Of course, there is no magic bullet to achieve success, and even the best solution is not expected of drawbacks. Having a clear vision of what it is pursued and working towards it will overcome any hardships from one of the toughest yet most exciting industries of all.