A Complete Guide to White Label Casinos

If you’ve been playing online casino games for a while now or have friends who are into the gambling market, then you certainly must have heard of White Label Casinos somehow or the other. 

So, ever wondered what is a white label casino? And why is it the talk of the casino town these days?

The obvious reason – Money! But there’s much beyond this.

What is a White Label Casino?

Before you understand about white labelling in the perspective of casinos, let me start with a short explanation of the idea itself.

 According to Wikipedia:

“A white label product or service is a service or product that’s produced by a company (the producer) that other companies (or the marketers) rebrand to make it appear as if they had made it.”

It wasn’t too long when opening a new online casino from scratch was nothing short of a challenge for a lot of entrepreneurs. From the utter instability to the countrywide regulations, repetitive negotiations with online software providers and massive capital investments needed, the task seemed almost next to impossible.

There wasn’t a simple or quick solution to this.

But not until white label casinos came into the picture.

Here’s my version of defining a white label casino:

A white label online casino is a ready to use and pre-made solution, which generally requires an extremely affordable investment in the initial level. You buy it from a good provider and rebrand it to suit your business needs before launching it.

The concept of a white label casino is that you’re basically renting a casino from any third-party service who gives all the operational and technological infrastructure that goes behind, while you completely focus on 3 crucial front-end aspects:

  • Marketing
  • Branding
  • Customer Acquisition

Believe it or not, in online gambling, White Label is one of the most optimal solutions for start-up entrepreneurs.

How do White Label Casinos Operate?

white label casinos

The collaboration conditions of operating a white label casino are favourable and simple. 

  • An experienced and skilled team of a well-known operator will develop a turn-key online casino and give it to a small brand like you who’s promoting it.
  • And for doing this, the young brand (or you) get a decent percentage from the profits gained. No wonder they are in the limelight now.
  • But before you can take a share from the total profits, you might have to give some cash up front, which is usually known as the setup fee.
  • Basically, a white label casino solution is a cheaper and an easier alternative to independent (conventional) online casinos.
  • Once the provider delivers the ready-to-be-used casino product to you, all that’s left for you to work on is branding. And further, launch it, and start attracting players.

Features of a White Label Casino

When it comes to white label casinos, there are a few features to keep in mind, which include: 

1. License

Undeniably, casinos are one of the primary hotspots for all kinds of organised crimes and illegal activities. Therefore, to operate one, it is mandatory for you to have a license.

And I know the sheer amount of work that goes into getting that goddamn license! It’s very strict and you have to take every step carefully. And it almost takes 3 – 6 months to get a gambling license too.

Happily, with a white label solution, the 3rd party takes care of the entire licensing aspect. 

2. Software

There’s no responsibility on you to develop the back-end games and stuff because the casino’s technology and gaming part is something that the third-party will take care of. You should only worry about bringing more players.

3. Payments

Again, this is something that the company will handle but you can decide as to what you want.

Facilities to make deposits and withdrawals at online casinos should be flexible, accommodating various payment modes and if possible, cryptocurrencies too.

4. Legal Service

Even though this will be taken care of under licensing, there are also certain ongoing legal compliances, which have to be established regularly. And even this will be taken care of by the company who provides the white label solution.

Top 6 Advantages of White Label Casinos

Considering the growing online gambling industry and the sophistication of software providers, setting up your own white label casino is a lot easier and faster than before. Let me justify this with a few benefits that this concept offers.

 

  • Minimal capital for the start-up: The most nerve-racking and annoying part for any small business is the beginning. But with white labels, you have an opportunity to have your own online portal without investing much or applying for big loans. The cost is very minimal.
  • A quick start: If you had ever tried to launch an independent casino, you’ll know what it is like. The development takes multiple iterations as well as corrections. Also, the process can take more than 1 year. But with the help of a reputed White Label casino provider, you can get your casino business started within a few weeks.
  • Packed with some economic perks: The cost to set up a White Label casino is a lot less than it would cost for an independent online. You can save a lot of money and use it wisely for promoting the project.
  • Highly convenient: When you start your own casino, you’ve a hell lot of things to take care of. There’s license, payment systems, deals with the suppliers, etc. And you’ll have to supervise every little thing at every single stage. 
  • Assembled with top-quality software: Generally, renowned online software providers will never work with projects that haven’t been tested (especially start-ups). Since white label casinos come packed with top-quality software, there won’t be any issue.
  • Dedicated customer service: With a White Label model, the operator’s parent company takes this responsibility and guarantees top-notch customer service to their players. 

3 Disadvantages of White Label Casinos

No matter how valuable a coin is, it has 2 sides. And this applies to everything in this world. So, white label online casinos are no exception. While there are multiple benefits, there are certain drawbacks to.  

  • Fixed gaming platform settings: One of the main drawbacks of white label casinos is that it’s pre-made. So, this means that you get a finished product that already has all settings implemented. And if there’s something that you want to tweak, bad luck! You can’t. If there’s someone who can fiddle it, it’s only the developer.
  • Restriction on the selection: Be it online casino games, software, payment systems, the provider is 100% responsible for selecting most details. But the cooperation terms might vary from one supplier to the other. While some suppliers offer more freedom to their operators, others may not.
  • Limitations on promoting the product: I totally get it why. Obviously, it is a gambling product and there are still many stereotypes revolving around it. So, there are higher chances for you to listen to your provider’s advice while executing the marketing plan. Even worse, you might have to be fully under their control. 

Things to Keep in Mind while Starting your own White Label Casino

So, before you think of taking that plunge into setting up your own white label casino, there’s one more thing that I want you to know first – especially if you feel that it’s still risky or you don’t want to be under the control of the provider or whatever.

The option is called affiliate casino offers, a model where you sign-up as an affiliate. This means that you are now a part of their business and can take a decent share whenever you send a new player to the respective online casino to register and play.

Personally, I would suggest you to explore this option first, as it’s a sensible step to take before diving deeper with your own casino. 

However, if you’ve already tried them and for some reasons, are firm to take on the white label route, then there are a few things I want you to be aware so that there are no disappointments later:

1. There’s a setup fee involved

Most white label casinos (in fact, a majority of them) will charge a setup fee from you in the beginning. Though they aren’t as high as setting an independent casino from scratch, they still are fairly hefty.

And when you think of the amount of functionality you’re accessing through white labelling; it is natural that there’ll be some kind of fee attached to access it. 

2. You’ll only get a part of the revenue

With the standard white label casino setup, you’ll only get a slice of the total revenue generated. So, before you pull the trigger, you have to be extremely clear of the percentage you’re going to get and under what terms & conditions.

3. Scope of products/services provided

Clarity is important here. The accurate range of services comprising your white label casino differs significantly from one provider to the other. There’s always room for negotiation as to exactly what is included and what isn’t. Therefore, explore your options carefully before you start.

4. License or legal problems

One of the major perks of white labelling is that you’re outsourcing all the possible problems related to the legality and licensing to someone else. So the natural consequence of this is that you’ll have to be 100% sure that your developer is legitimate. 

White Label Casino: Is it your Cup of Tea?

1. Well, you got to be “different”

Think out of the box, be different – you might be hearing this all the time but in the casino business, if you do this, it can take you to great heights.

And since my friend tried things differently, it won him a good amount of loyalty from players. 

However, being in this industry, I also get to hear stories of other websites who are totally unremarkable and yet are killing it. I know what that feels like!

So, if a product isn’t a big deal, why would a typical white label perform so well? Well, my answer is traffic conversion.

Turns out that a big percentage of players are promiscuous. Therefore, they’ll typically have either 10 or more accounts with several operators.

Players look for free money all the time. Trust me on this because I’m obsessed with casino games and I do this all the time. I test a lot of casinos and if they don’t give me what I’m looking for, I move on.

Personally, I’ll stay at a casino until I:

  • Lose often
  • Run out of cash
  • Have a bad experience from the customer support 

2. Think of players’ retention

In this digital age, customer acquisition is very expensive, and you know it. But if you’re a prosperous affiliate, who already has a copious amount of traffic, you don’t have to think of player’s retention much.

You can just send some traffic to your white label portal and rock it. But I strongly feel that the major part of retention lies in enhanced bonus management and better customer services. 

3. Do some math and know your numbers  

Let’s assume that a player’s return is about 3% on average. So, if I gamble with $100, I should get $97 back, right?

But as an operator, I only have $3 to pay to affiliates, white label provider’s fee, game provider’s fees, operating overheads, and bonus of course.

For that $100 wager, you may be able to give a bonus that’s worth 1% (about 33% of your profit margin), which leaves you with a remaining $2 for everything else.

But if your wager requirements are around 35x-40x the rollover, you’ll be able to receive your bonus amount back. But players win and besides giving that amount, as an operator, you’ll still have to pay fees for turnover to the game provider. 

My Final Words…

If you look closely, there’s a good balance of benefits and drawbacks here. If you’re a determined entrepreneur, white labelling is certainly worth the weight of gold. Nonetheless, expecting a relaxed ride in the process is a surefire formula for disaster.

Though it is possible to start and handle an online casino business without much experience, it’s something not recommended.

It’s business and you need to be serious. First, question your business wisdom and experience until date. Then, see if you can put up the amount of money required to get things started.

Even then, if you’re 100% confident that you can get things done, then know this is it! But make sure to scrutinise each term & condition associated with the white label agreement, before signing up.

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