Entering the iGaming market can be a daunting task, particularly when it comes to the financial investment required to get started. However, white label solution offers a cost-effective way to launch an online casino or sportsbook without the need for extensive capital or technical expertise. This article will explore the financial aspects of setting up a white label iGaming platform, breaking down the costs involved in setup, licensing, and ongoing maintenance, and explaining why this approach is favoured by many new entrants in the industry.

Understanding White Label Solution

White label solution in the iGaming industry refers to pre-packaged platforms provided by established companies that can be rebranded and launched under a new operator’s name. This model allows entrepreneurs to enter the market quickly and efficiently, leveraging the technology, licensing, and operational support provided by the white label provider.

Initial Setup Costs

The initial setup costs for a white label iGaming platform are significantly lower compared to building a custom platform from scratch. This is because white label solutions come with pre-built software, including a range of casino games, sportsbook offerings, and payment systems. The operator typically pays a one-time setup fee, which covers:

• Platform Licence Fee: This fee grants access to the software and infrastructure needed to operate the online casino or sportsbook. It's typically much lower than the cost of developing custom software.

• Customization Costs: While white label platforms are mostly ready-to-launch, operators can still customise the branding, including logos, colour schemes, and basic UI/UX elements. The extent of customization can vary, with some providers offering more flexibility than others.

Licensing Costs

One of the most significant advantages of white label solutions is that they often include licensing as part of the package. Acquiring a gaming licence independently can be a lengthy and expensive process, requiring compliance with the regulatory frameworks of different jurisdictions. With a white label solution, operators can bypass this hurdle, as the licensing is typically handled by the white label provider, who already holds the necessary approvals.

• Cost Savings: This can save operators tens of thousands of dollars and months of legal work. Moreover, the provider ensures ongoing compliance, which is crucial in the heavily regulated iGaming industry.

Ongoing Maintenance Costs

Operating an online casino or sportsbook requires continuous technical support, software updates, and security management. White label providers typically include these services in their package, which helps reduce ongoing operational costs. Key areas of maintenance include:

• Technical Support: White label providers offer 24/7 technical support, ensuring that the platform runs smoothly without requiring the operator to maintain an in-house IT team.

• Software Updates: Regular updates are necessary to keep the platform secure and up-to-date with the latest gaming trends and features. These are typically included in the white label agreement, saving additional costs.

• Payment Processing: White label solutions often include integrated payment processing systems, covering both fiat and cryptocurrency transactions. This removes the need to negotiate separate agreements with payment providers, which can be costly and time-consuming.

Revenue Sharing and Royalties

In addition to the initial and ongoing costs, most white label agreements include a revenue-sharing model where the operator pays a percentage of their profits to the white label provider. This model aligns the interests of both parties but also ensures that the operator only pays based on their earnings, making it a flexible and less risky financial commitment.

Why White Label Solution is Preferred

White label solutions are particularly attractive to new entrants in the iGaming market for several reasons:

Lower Capital Requirements: The reduced need for upfront capital makes it accessible to a broader range of entrepreneurs. Faster Time-to-Market: With the platform and licensing ready to go, operators can launch their business much faster than if they were building a custom solution. Ongoing Support: The included maintenance and support services reduce the need for an extensive in-house team, further lowering operational costs.

Conclusion

White label iGaming solution offers a cost-effective and efficient way to enter the competitive online gambling market. By minimising the initial investment and providing ongoing support, this solution allows operators to focus on branding and marketing, ensuring a quicker path to profitability. While there are ongoing costs involved, the overall financial commitment is generally lower and more manageable than alternative methods, making white label platforms a popular choice for new iGaming ventures.