Owners of popular information resources providing the latest news of gambling are frequently thinking about opening their own online casinos. In this case, White Label seems to be a perfect solution for aspiring entrepreneurs, as it brings an opportunity of becoming an affiliate or an owner of a gambling house right away. In this review Slotegrator will explain in greater detail about its White Label projects, their advantages and prospects. We have also answered some of the questions that might occur in the mind of a beginner online casino operator at the initial stage of operation.

Article summary

  1. What is White Label
  2. From an owner of a popular information resource to a White Label casino operator
  3. Benefits
  4. Things aspiring White Label operators should know
  5. Special features of White Lable casinos
  6. Conclusion

What is White Label

White Label casinos are provided only by major gambling enterprises. White Label already encompasses a ready-to-use set of gambling features that includes the following components:

  • A gambling license that officially permits operation on the gambling market;
  • Gambling software and hardware;
  • Gaming content;
  • Сustomer support systems.

Such a project can be launched absolutely legally in a relatively short time at minimum expense.

While purchasing a White Label solution acquirers obtain a ready-to-use product, so that the only thing that newly established operators have to do is to promote their gambling resource by the means of different marketing tools. White Label projects are hosted on separate domains that are exclusively designed for them only and are usually complemented by a unique logo. Operators of such gambling houses are advertising their websites to players, introduce their own bonus policies, create special offers and promo campaigns, as well as organize tournaments and draws for prizes.

In addition to the said above, operators are not involved in such complex matters as software development, financial calculations, licensing, tax reporting, as well as customer support. By providing its clients with a White Label solution, the so called “parent casino” undertakes all the important matters mentioned above.

From an owner of a popular information resource to a White Label casino operator

Every entrepreneur is highly interested in successful promotion and development of business, so to speak, from the bottom to the top. Affiliates are involved in online casino partnership programs and frequently make use of thematic websites where they allocate external links in order to attract and retain more clients.

If a random user follows such a link, registers at an online casino and starts gambling, a certain percentage from gamblers’ losses are automatically transferred to its affiliates. So, when owners of such an information resource come up with an idea of running their own gambling business, White Label seems to be a right option.

Traditionally, individual gambling projects require sustainable amounts of money for software development and licensing. Usually affiliates do not have enough money to start the business right away.

Though the whole idea seems appealing, as year by year gambling markets show signs of steady growth. And the gradual shift from affiliate business to online casino ownership only confirms this tendency. In its recent survey among affiliates the iGB (iGamingBusiness) research group discovered that more than one third of respondents are considering the possibility of becoming an operator in the near future, while around 11% of them are already completing documents to become operators.

The following pie chart demonstrates the number of affiliates willing to become operators in the near future:

Number of affiliates willing to become operators in the near future

Benefits

White Label is very beneficial both for “parent casinos” and affiliates. “Parent casinos” obtain their monthly commission in a form of a revenue share from the operating surplus of the affiliate. Those affiliates that are well aware of the principles of operation of the gambling market are very effective in elaborating efficient marketing strategies enabling them to establish a good rapport with their target audiences and working with target traffic, which means that they are potentially able to run and manage their own project.

Things aspiring White Label operators should know

White Label implies both purchasing online casino infrastructure itself and monthly payments in a form of revenue share. The initial price varies from $15 to $20 thousand and includes royalties – a certain percentage out of the revenue which is around 40%. Moreover, experts from Slotegrator take into account a couple of factors that should be considered by aspiring operators in order for them to create a successful project.

Bonuses and fund withdrawal seem more important for players than innovations and gimmicks

This statement is both justified and not at the same time. And here is an explanation why. Having made a little bit of research of current gambling blogs, thematic groups and forums where gamblers exchange their opinions, it becomes clear that online casino users do not expect much from the product itself. The most frequently discussed things on forums include bonuses and payoffs. Nobody actually discusses special features of the webpage or its extraordinary functions. But that doesn’t mean that design is not important. However, perception of design is a very superficial thing that can only tell whether users like the website or not.

Read also: Drawings in casinos: Operators’ tips on how to attract new customers

Establishment of a quality brand is of paramount importance

It’s not a secret that a nicely elaborated brand evokes necessary associations. It should stand out due to its unique features, thoroughly correspond to gambling themes and have something in common with its domain name. Uniqueness of the brand is sometimes called brand authenticity and is the cornerstone of brand recognizability that differs it from the rest of competitors.

Though creation of an ideal brand is a pricey process. That’s why White Label operators usually make use of bright and eye-catching colors in their logo designs, frequently making use of the color gamma that instantly resembles somehow the color palette used by the “parent casino”. Actually, it’s an effective approach that in future won’t cause problems with copyright and at the same time will create proper associations that will give users pointers to the necessary website.

Singularity of design is secondary. Traffic conversion above all

According to the statistical data, the majority of online casino players are quite promiscuous and are not demanding at all, as long as many of them have up to 10 accounts on different gaming resources. A big number of users just switch from one online casino to another, constantly looking for “free money”. Basically, they test out different gambling platforms and having not found things they need, proceed further. Those who stop at a proper website usually stay there unless they:

  • Spend all the given money;
  • Lose too frequently;
  • Face problems with the service.

That’s why before purchasing a White Label project an aspiring operator should have a good source of traffic conversion. If an operator has big volumes of traffic, singularity and uniqueness of design becomes a matter of secondary concern. Big volumes of traffic guarantee success even within standard designs.

Read also: How to attract quality traffic to online casino website

Costs associated with marketing promotion

In contrast to affiliate programs designed to promote other brands, White Label enables to promote your own brand. An effective marketing strategy has a 100% success ratio. Though marketing, without a doubt, is a pretty costly thing, particularly when it comes to payment of royalties. Though in the given case these expenditures should be viewed as investments, because in the long term, your online casino will be successfully developing and on the base of already popular brand you will have a possibility of creation a brand new independent project that will be familiar to the whole customer base.

First of all, aspiring operators should conduct a thorough research regarding activities of their competitors. This will give a more clear idea of the current market. In light of this you may develop new strategies and offer your gamblers something extraordinary and fresh, so that they won’t miss a chance to gamble particularly in your online casino.

Read also: Analysis of competative online casino sites: Core indicators

It is also necessary to organize certain tournaments in order to attract new audiences and retain already existing customers. By owning a White Label casino operators gain full freedom to create their own bonus programs and tournaments. One should get the maximum use out of such possibilities. Experience has shown that after online casino is launched, it is very important to invest almost a half of projected budget into effective marketing campaigns. Retrenching of budget isn’t a good option in this case.

Attitude towards clients

While shaping their own business lines of online casino management, some operators choose aggressive policies towards gamblers, while some opt for more loyal ones.

Aggressive strategies rest upon using all the possible and impossible methods of customer attraction neglecting all reputation matters. If in past successful affiliates had a lot of sources of traffic, then, having turned into an operator, they would be also able to use their past insight for further customer attraction. This is the core of this marketing strategy, so that nobody really cares about the customers themselves, as the main matter of concern is the volume of traffic.

Loyal strategies towards clients are based on establishing a good rapport with gamblers that directly affects the reputation of the gambling house. A lot attention is paid to keeping the loyalty of already established players and to effective collaboration with dissatisfied customers.

In this case, operators apply more effort to attracting of new customers and retaining of the old ones. Quality customer support plays a very important role, as well as availability of bonus programs.

Usually customer service platforms for White Label projects are already provided by the “parent casino”. That’s why before choosing a certain provider aspiring operators should make a research regarding all the necessary information they can get on forums and track customer feedback. Such measures will give a better understanding of problems that gamblers face on different gambling platforms and whether they can be solved or not.

Read also: Important things for online casino customers

Expenses on bonuses and payoffs

Payment of bonuses and wins seems to be a costly thing for any online casino. Such payments are also known as reimbursement. Following the policy of good customer support, it is important to bear in mind that the more money you give away, the more clients you get in return. That’s why you should establish such kind of relationship with your clients that will potentially make them win more and gamble more particularly on your webpage. In order to reach such goals many online casinos grant loyalty points, prizes and organize gambling tournaments for their customers. These are effective tools in establishing long-standing relationships with gamblers that eventually help to retain them, enhance their loyalty and make profits.

On the average, after reimbursement casino is left with 3% out of total revenue. In other words, within each $100 loss gamblers are reimbursed with $97. The remaining $3 make up the revenue of the online casino, which also implies that casino has to pay out royalties to the “parent casino”, as well as incur expenses on bonuses and ongoing processes. Thus, 1% out of each 100$ is allotted to gamblers in a form of a bonus.

RTP – casino revenue

It is common knowledge that online casinos usually get their main revenues from slots as particularly this type of entertainment is the most popular among the majority of online gamblers. Chances to win are usually predetermined by RTP which is the rate of player’s return. In such a manner, if the RTP of a slot accounts for 95%, then the revenue of a gambling house makes up around 5%. In other words, in the long run the rate of player’s return accounts for 95%, while online casinos get only 5% out of each bet. As a result, 5% make up a certain form of a fee that casino players pay for gambling in this particular casino for each available spin. For instance, if there were 10 spins for 10$ each, a player won’t win anything and will only lose all his/her money. In this case, casino gets only $5 and the remaining sum of money will be stored in the money pool to be eventually paid to luckier gamblers. The trick is quite easy: slots with higher RTP rates pay out more frequently, though only insignificant sums of money, while slots with lower RTP rates pay out more sustainable wins, however less frequently. It is very unlikely that in a new online casino gamblers will place high stakes, that’s why financially it’s more profitable for the newly opened gambling platform to make players gamble longer but at low stakes.

Special features of White Lable casinos

If we are going to compare the possibilities of White Label operators and owners of individual casino projects, it will be possible to figure out advantages and disadvantages of both types of businesses.

Features

White Label

Individual projects

A turnkey license for running a gambling business online

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-

Full package of iGaming content

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-

Integrated payment systems

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-

Integrated customer support service

+

-

Significant time expenditures and financial expenses on the launch

-

+

Needs for staff

-

+

Experience in marketing, traffic management

+

+

Legal issues

-

+

Possibilities of promotion of your own business

+/-

+

Conclusion

To sum up, experts from Slotegrator are unanimous in their opinions that White Label is an ideal solution for those who are able to run gambling projects and are willing to open their own online casino project in a very short time. It’s an amazing opportunity for aspiring operators to focus on promotion of their own gambling resource and establishing their own brand.

Having purchased a turnkey White Label casino at Slotegrator, operators get all the advantages that turnkey solutions may offer complemented by consultations of experts specializing in online gambling projects and quality customer support.