White Label Casino: The Most Efficient Work Format in 2022
Is it possible to open a gaming site or bookmaker's office in a few days without investing thousands of dollars? With the 2WinPower studio, your dream of owning a gambling project will become a reality.
Our experts will explain how the business model works, its main advantages and what to pay attention to when choosing a supplier.
General Information about the White Label Program
The business scheme was first used in the American music industry in the late 80s. US sound studios released vinyl records without a logo, allowing sellers to put their brands on the product.
The program quickly gained popularity in other commercial spheres, including finance, IT, industry, and the entertainment market.
The White Label model has been used in the online segment since 2001. Representatives of the iGaming industry and related markets quickly appreciated the benefits of such cooperation.
How the Business Model Works
A White Label casino is a full-fledged platform with a set of content, analytical tools, payment programs and other operational services for conducting business. The seller company provides partners with a gambling project under certain conditions.
To start a wagering White Label business, an operator needs to perform several actions:
- Search for a supplier. Many intermediaries on the market offer different conditions. We advise choosing well-established companies with many years of experience.
- Conclusion of the contract. The agreement specifies all working points, including the list of provided software, the range of game content, the size of the commission for using the service, and the obligations of the parties.
- Site design. An operator receives a ready-to-run business. To launch it, all that remains is to design the platform in a corporate style and create a unique logo with a brand.
- Promotion program. To develop and popularise the project, an operator needs to attract traffic. Investors can use the provider's built-in marketing services or create separate strategies.
Responsibilities of the Parties
The White Label program clearly divides duties between participants. Almost all administrative and technical issues remain the responsibility of the supplier company. The buyer is accountable for a steady flow of traffic.
| Parent brand responsibilities | |
| Gaming platform | The supplier gives its partner a ready-to-use digital system with open access to back-end settings, analytics programs and other administrative services |
| Content | It is often difficult for novice providers to conclude an agreement with rating developers. The parent company undertakes to supply up-to-date gaming content. Entrepreneurs have 2 options for cooperation, namely:
|
| Web portal | The White Label project includes a site with a well-developed structure, administrative modules, gaming accounts, etc. An operator receives a ready-made platform, which needs to be supplemented only with a unique logo and brand |
| Legal support | An investor does not need to independently register a company, open bank accounts and buy a work permit. All legal preparation of the project remains the responsibility of the seller. A manager can start with a sublicenсe and rely on operational assistance in case of any controversial issues with partners, banks and clients |
| Technical support | The supplier is responsible for the system’s performance. The seller's duties include:
|
| Financial guarantees | A White Label casino supplier is responsible for the commercial side of the project. The parent brand provides payment processing through its merchant accounts and ensures protection against large financial costs. The contract must include a clause on the remuneration of large prize funds and jackpots by the selling company. The partner deals only with closing current accounts and marketing expenses |
| Interaction with the client base | The parent brand takes care of all the technical parts of working with users, namely:
|
| Operator responsibilities | |
| General administration | The partner fulfils day-to-day managerial tasks the major of which are:
|
| Marketing | The main task of an operator is to attract maximum traffic to the gaming platform. A White Label casino partner can work with advertising strategies and tools offered by the parent brand, or develop their action plan |
| Customer retention | The operator's duties include holding promotions and other events aimed at maintaining the interest of the target audience. It can be:
|
| Feedback | An operator must provide users with reliable report channels for interacting with the support service and promptly resolve typical issues (for example, update the F.A.Q. section on the site). In some cases, the parent brand takes over the full support of gamblers |
The White Label business model for a casino can be described as follows: an operator promotes a personal brand and forms a client base, while a seller company deals with the legal, organisational and technical issues of the project.
Benefits of Buying a White Label Casino
The scheme helps significantly reduce the initial costs of business organisations and enter the market in record time.
The benefits of the program are the following:
Business Launch Time
An operator can start work directly on the day of signing the contract. The platform comes ready to run with all the necessary administrative tools. All that is required from the buyer is to develop the site design, logo and brand.
Minimum Starting Capital
Some programs do not require an initial contribution from the investor. The commission for using the gaming platform should be charged from future profits. Even if the seller asks for a guaranteed payment to remove unscrupulous customers, it will cost about 1–10,000 dollars, which is almost 10 times cheaper than developing a business from scratch.
Comprehensive Support
The supplier company assumes responsibility for the operation of all gaming system components, including communication with customers and supporting the entrepreneur in business matters.
The seller's duties include:
- prompt response to changes in the legal field;
- guarantee of the project compliance with the requirements of local and international regulators;
- providing advice on start-up administration issues;
- quality control of gambling equipment and compliance with the rules of fair play;
- overseeing the financial side of the business;
- resolving disputes with customers of the institution, and others.
Commercial Risk Protection
The White Label casino seller provides comprehensive financial support for the project and:
- offers access to verified payment systems;
- processes transactions through its merchant accounts;
- controls the transparency of operations;
- pays out large prize pools and jackpots.
The Participation Cost in the White Label Program
The final price of an iGaming project depends on several factors:
- Legal status. Regarding the type of licence, an operator can work in the local market or enter the international level.
- Content range. The platform will support software from only one supplier or contain a large selection of offers from different producers.
- Administrative functionality. The final price of a business is affected by the number of built-in operational tools: payment modules, analytical systems, CRM programs, etc.
- Additional services. The seller can offer a manager the installation of security systems, the creation of a mobile application, assistance with the development of corporate identity and site design, accounting services, and more.
There are 2 ways to initiate work with the White Label program:
- Start without investment. An operator enters into an agreement without prepayment and undertakes to deduct commissions for the use of software from future profits.
- Purchase with a deposit. This is a more common scheme that protects the seller from dishonest customers and guarantees an operator an adequate relationship with the supplier. The amount of the contribution varies from 1 to 15,000 dollars, depending on the financial policy of the parent brand.
White Label Casino Profits
After deducting administration fees and winning bets, the net revenue of the relevant gambling business will be approximately 40–60% of the total income.
From the amount received, an operator additionally deducts:
- bonus program payments;
- commissions of financial systems;
- advertising costs;
- tax rates.
The profitability of the project depends on the quality and effectiveness of the marketing strategy. The main task of a White Label casino operator is to attract maximum traffic to the platform and create optimal conditions for customers to visit it regularly.
The Main Things about Buying an Online White Label Casino
This business program is one of the most convenient, cost-effective and safe solutions for novice entrepreneurs.
- According to the White Label scheme, you can launch a casino in a couple of days. The gaming platform may be used immediately after the conclusion of the contract. To start a business, an entrepreneur only needs to design a site in a corporate style and develop a unique brand.
- Together with the casino platform, an operator receives comprehensive legal and technical support. A parent brand is responsible for the administrative components of the system. It quickly eliminates failures, controls the financial part and resolves disputes with clients.
- A White Label casino is a legitimate business that complies with international legal standards. Having bought a ready-made gaming platform, an operator can work under the sublicence of the seller. This approach significantly saves time and money on buying a certificate and guarantees the investor comprehensive legal protection and access to regulated markets.
The latest market innovations are available in our branded catalogue:
- live casinos;
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Our team will bring to life a gambling project of any complexity.
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