What’s a White Label Casino (and Should You Care)?

If online casino gaming is your thing, there’s a question you’ve probably pondered on more than one occasion:

Could I run my own successful online casino?

Of course, the keyword here is ‘successful’. In a technical sense, pretty much anyone wishing to do so could set up and launch their own web casino these days. A cheap hosting package and a bog-standard template being all that’s needed to set the wheels in motion.

The problem being that with such ferocious competition, this half-baked approach is also a recipe for disaster. But this doesn’t mean that successful casino ownership is out of the equation for all but the biggest brands and established businesses.

For entrepreneurial types genuinely interested in setting up a casino business, there’s always the option of a white label project.

What Are ‘White Label’ Casinos?

The term ‘white label’ has been thrown around online since 2001, when a business by the name of Ukphoneshop.com came up with a novel idea. 

As a clever business expansion method, they provided other companies with the opportunity to create a re-branded version of the original website to sell their products. Each product sale paying a commission to Ukphoneshop.com, with the rest going to the owner of the rebranded site.

Since then, the white label business model has been adopted by hundreds of online brands, businesses and industries worldwide. One of the most prevalent being the online casino industry.

How Does the White Label Model Work?

In a working example, an existing casino by the name of CasinoXYZ offers a white label scheme. You sign up for the scheme, launch an edited version of CasinoXYZ under any name you want and brand it as you wish. You take full control of operating the new casino, using the software, gaming assets and so on provided by CasinoXYZ. At the end of each month or quarter, the revenues generated are split between you and CasinoXYZ at the rate agreed upon entering the deal.

In essence, therefore, a white label casino business model is a type of affiliate program. The difference being that you’ll typically receive far more assistance with the initial setup and launch of your business – white label casino solutions usually incorporate:

  • Gambling licences and permits
  • Software and gaming assets
  • Complete website hosting
  • Payment processing platforms
  • Marketing and advertising
  • Expert support and legal advice

Obtaining a gambling license alone can be a time consuming and expensive process. In fact, it’s the combination of delays and initial setup costs that rule many entrepreneurs out of the equation entirely. At least, when it comes to setting up a brand-new casino from scratch.

On the surface, it appears to be something of a no-brainer. Nevertheless, there are various advantages and disadvantages to the white label business model that need to be considered. Not to mention, the fact that terms, conditions and the and support you can expect to receive vary enormously from one provider to the next.

The Advantages of White Label Casino Businesses

If you’re serious about going ahead with a white label casino business, you stand to access a variety of perks and advantages. A few examples of which include the following:

  • Speed and Simplicity.  Setting up and launching a white label casino is quick and easy, often requiring no more than a few weeks to set the wheels in motion from scratch.
  • Tried and Tested.  Assuming the scheme’s provider is already successful, you have something of a blueprint to follow to ensure your own success.
  • Cost Effectiveness.  Irrespective of initial setup costs, it’s exponentially more affordable to launch and run a white label casino than to build and operate your own brand from scratch.
  • Expert Advice. It’s in the best interests of the service provider to ensure your success. As a result, you can expect plenty of expert advice and support along the way.
  • Accessibility.  You don’t need to necessarily have a great deal of business or online casino acumen to operate a successful white label casino business.

The Disadvantages of White Label Casino Businesses

On the flipside of the coin, there are certain drawbacks to white label casino business operations that must be considered. Whether or not they augment the benefits listed above is for you to decide:

  • Setup Costs.  Every service provider establishes its own setup costs and administration fees, though you’re unlikely to find a deal available for less than £10,000.
  • Limited Rights.  To a degree, you will never fully own your online casino business and accept limited rights from the start. Whatever changes the service provider makes to its business model, you simply have to accept and implement them accordingly.
  • Marketing restrictions.  You may also find that the service provider imposes certain marketing and promotional restrictions, in accordance with its primary promotional strategy.
  • Competition.  The biggest challenge when running a white label casino business is that of standing out from the crowd. It’s not enough to simply offer a carbon copy of any other casino already up and running.

Is White Label the Solution for You?

As you can see, it’s a pretty balanced picture of advantages and disadvantages.  For the ambitious entrepreneur, white label casino solutions can be worth their weight in gold. Nevertheless, expecting an easy ride at any point in the process is a guaranteed recipe for disaster.

While it’s possible to start and run an online casino business with little to no experience, it isn’t recommended. If you’re serious about going into business, it’s a good idea to first question your general business acumen and experience to date. Not to mention, whether or not you can comfortably put up the kind of cash needed to get things started in the first place.

Still, if you’re confident you can get the job done and need a more affordable entry-point to the world of professional web casino operations, this could be it.  Just be sure to examine each and every term and condition attached to the white label program, before going ahead and signing up.

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