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Running a gaming business is a profitable type of entrepreneurial activity. According to statistics, in just 10 years of development of the casino industry, the volume of its income has increased by more than 3 times.
According to the report of the H2 Gambling Capital independent consulting agency, in 2018, the turnover of the international gaming niche exceeded €44.1 billion, and by the end of 2022, the sector is expected to grow to €56.8 billion per year. At the same time, the share of the white market is about 58.1%, and this indicator will also increase.
Smart Money experts offer an overview of the White Label cooperation format. From us, you can also order turnkey gambling start-ups of any type.
If a couple of years ago, such an option as a development from scratch was considered the only way to enter the market, today, entrepreneurs can use a wide range of other strategies.
To launch a casino independently is the most expensive opportunity, which requires huge investments in the initial stages and a large amount of specific knowledge.
When starting a project from scratch, future operators will have to deal with the following aspects:
Beginning businessmen must be prepared for significant time expenditures and investments. As a rule, it takes 6 months to launch a gambling project from scratch: the acquisition of a licence alone takes from 2 weeks to 4–6 months. Besides, it takes some time to create and choose the design of the site, as well as organise other workflows.
If we talk about expenses, it is worth mentioning that the amount of initial investment should be at least $500,000. The exact sum of money depends on the requirements of the chosen jurisdiction, the cost of programmers' services, the commission that must be paid to software vendors, as well as the package of user settings provided on the platform. An additional expense item is the creation of a promotion program. Be prepared for the fact that about half of the total budget will go to high-quality advertising for a new gambling project.
So what if operators do not have much time and money? Let us consider one of the alternatives.
It is an affiliate program that allows entrepreneurs to enter the market with a new iGaming solution much faster. The main idea of the system is that business owners receive a product (with a unique design and an exclusive logo), which can be launched immediately.
Among the top 6 advantages of a White Label platform, we can name:
By concluding an agreement with a supplier company, operators save their time at almost all stages of project implementation (from buying a licence and developing a unique design to maintaining the site).
Business owners receive already set payment services with the ability to process all monetary transactions. As for the parent company, it is responsible for the level of security and confidentiality.
Entry fees are much lower than the cost of an independent launch of a gaming site. Entrepreneurs are obliged to transfer to the supplier company a strictly defined percentage of income, which is specified in the contract. The rest of the funds can be spent on advertising and promotion of their products.
By ordering a ready-made solution, businessmen can promote their proprietary solutions and the enterprise itself. The unique name and design remain the operators’ property even after the expiration of the contract with the parent firm.
The supplier company undertakes to provide a ready-made project with a well-functioning customer service system and perform all functions to resolve technical and legal issues.
Another advantage of the White Label program is that large payments to gamblers are considered the responsibility of the parent company. All beginning entrepreneurs need to do is cover promotional offers and bonuses.
Compared to an independent project launch, the affiliate program is much more beneficial:
Main evaluation criteria | Independent launch | White Label casino |
Time required to enter the market | – | + |
Legal issues | – | + |
Initial expenses | High | Low |
Requirements for operators | High | Low |
Financial project management | + | + |
Technical support | – | + |
Risks of having to pay out big wins | + | – |
Overall risk level | High | Low |
Although there are several significant benefits, the White Label option also has some disadvantages. For example, operators commit themselves to higher revenue-sharing fees.
The casino’s interest is calculated to cover the costs of licensing, technical support, and other aspects of project maintenance. Therefore, the main goal of business owners is to constantly expand the audience, attracting as many new regular customers as possible.
The decision to launch a gaming site under this scheme is the best choice for entrepreneurs with a limited budget. When minimising the costs, you get a complete set of products and an opportunity to promote your unique brand. This is definitely the best way to enter the iGaming niche for those who do not have sufficient working experience.
The Smart Money studio offers its clients the most reliable casino solutions at affordable prices.
From us, you can order such in-demand products and services as:
Order a professional consultation from Smart Money managers and launch an online casino in a matter of time.
Do you still have any questions? Ask an expert
manager@sm-pay.com
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