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White Label Online Casino: Effective Business Plan from 2WinPower

Taking the first steps in the gambling business, many entrepreneurs are interested in White Label casino: what is it, how to launch a gambling start-up with minimal costs and get the maximum profit from it. 2WinPower team has collected comprehensive information about the White Label system. In this article, you will find out what is included in the White Label online casino package, as well as what advantages and disadvantages this program has.

The White Label format is a popular form of cooperation, known in almost all segments of the economy. The system comes from the United States and initially worked only in the music industry, but in just a few years has been applied in a variety of other business fields.

White Label online casino: what is in a package

Table of Contents:

1. What is White Label and How Does it Work

  1.1. White Label Service Package

  1.2. Allocation of Responsibilities Under the White Label Agreement

2. About the Monetary Side of this Case

3. Advantages of White Label Service

4. A Few Words about the Drawbacks of This System

5. Conclusion

What is White Label and How Does it Work

Internet business based on the White Label scheme is a practical and mutually beneficial format of cooperation between the operator and the “parent” service. In essence, it is the transfer of ownership of products and services (sale or lease) of the company to a second person. By entering into an affiliate agreement, the lessee receives the right not only to use the purchased product but also to promote and distribute it under his own brand.

Starting own gambling business on the basis of the White Label program, the customer enters into a contract with the lessor and gets access to a unique finished product, waiting for the launch and receiving the first visitors.

The scheme has a number of advantages and allows starting an online business with minimal time and financial losses (about the benefits of this choice we will tell you a bit later).

White Label Service Package

Own business in the format of White Label involves obtaining the following products and services:

  • Gambling license. The operator works under a sublicense, the holder of which is the “parent” resource.
  • Gaming platform and a set of administrative tools.
  • Games of chance and other entertainment content depending on the format of the future gambling project. The operator receives live casino software, mobile applications or betting products.
  • Hosting and server.
  • Integration of payment services. As a rule, these are systems that can work with different currencies.
  • Legal consultation and the advice of marketing experts.
  • Technical support of the project.

For the lessee, the above services are extremely important, since the main attention can be paid to attracting the audience and increasing traffic, and all the technical nuances and responsibility for legal registration remain under control of a more experienced partner.

Allocation of Responsibilities Under the White Label Agreement

Answering the question of how to open a White Label casino, it is impossible to ignore the fact that almost all the responsibility for the operation and technical support of the gaming platform is assumed by the lessor. Nevertheless, the duties of the entrepreneur also include a number of actions.

Areas of responsibility of the operator and the lessor in cooperation under the White Label program
The entrepreneur responsibilities Corporate parent responsibilities
Completing daily administrative responsibilities of the online platform Transfer of the gaming platform to complete or partial ownership
Marketing, advertising promotion of the project in order to attract customers Designer services (visual design of the casino website and development of an exclusive logo)
Promotions, implementation of loyalty programs in order to retain players Legal support (issuance of sublicense to the operator)
Control and payout of bonus programs, promotions and customer incentive systems Work on the financial infrastructure of the project (integration of payment services, transaction processing through the company’s own merchant accounts)
Organization of gambling in accordance with the internal policy of the corporate parent and the provisions of the sublicense Web hosting, customer base administration services
Ensuring operational communication of customers with the technical department Technical support of gaming platform (software maintenance, content updating, advising clients)

About the Monetary Side of this Case

The gambling industry is showing tremendous growth. Last year alone, the industry’s turnover increased by 4.3 billion euros, exceeding 44.1 billion euros. Therefore, the question of how to open a White Label online casino is more than relevant.

If to compare with the launch of your own, the White Label scheme looks more practical and profitable option. While starting from scratch, the operator will have to spend several hundred thousand dollars, while the conclusion of the partnership agreement costs a couple of dozen thousand dollars. At the same time, the future owner of the gaming platform is exempt from solving a lot of technical and legal issues, can use ready-made services and approved practices, as well as useful connections of the “patron”.

Advantages of White Label Service

Open White Label online casino: why it is a great choice

One of the main upsides of this choice is the ability to launch the project in a few days with minimal financial investment and technical work.

Operators receive a lot of benefits:

  1. Minimum time for starting. You can launch the project in two or three days, which are required for the visual design of the website and the development of your own brand.
  2. Minimal financial expenses. As a rule, the White Label scheme costs a tenth of the funds that would have to be spent on launching on your own.
  3. Reliability guarantee. The lessor is obliged to provide only quality and certified products from trusted suppliers.
  4. Legal work. The operator is able to offer his services legally and operates in accordance with the sublicense.
  5. Technical support. Each player can count on prompt assistance at any time of the day, and operator intervention is limited to the general control of the situation and administration of the project.
  6. No payouts on big wins. The lessor is responsible for paying out jackpots and other large winnings from his own funds. In turn, the operator is obliged to pay money for loyalty programs and promotions.
  7. Promotion of own brand. The lessee has the right to use a unique name. In the future, he can buy out the project or to break the contract at any time and switch to another form of business.

A Few Words about the Drawbacks of This System

White Label is recognized as the optimal form of work in the gambling market, that allows reducing the risk of financial losses many times. However, it is important not to overlook some of the peculiarities and disadvantages of the scheme.

The downsides include such features of the work:

  • Strict compliance with the terms and internal policy of the “parent” service. The operator has no right to make changes to the provided set of products (including adding language translations, expanding the range of games or connecting additional payment systems).
  • Restrictions in the promotion of the project. The lessor offers customer specific marketing strategies. The operator may either accept the scheme or refuse it.
  • Obligatory payment of interest. For the use of the product, a fixed fee is charged, the amount of which can be from 40 to 60% of the total revenue of the website.

Conclusion

2WinPower company is the best answer to the question of how to choose a White Label casino. We are ready to provide detailed information about the best solutions and undertake the issues of the contract creation, to be engaged in legal support of the project.

Do not want to be dependent on a large brand? There are other options for starting the business. Our team will assist in the creation of an exclusive start-up. Order a turnkey service, and we will implement your most creative ideas and dreams.

Become part of the 2WinPower family today and discover new development prospects.

Date of publication: 16/05/2019
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