The Pros And Cons Of White Label Casinos

The Pros And Cons Of White Label Casinos

The white label casino is increasingly becoming ubiquitous with most casino operators going the white label route, instead of setting up new branches. Today, we will explain what the white label casino is all about and detail its sweet pros and hefty cons. Read on to know more!

The Pros And Cons Of White Label Casinos

Whitewashing matters!

So, what exactly is a white label casino? Well, the term “white label” is used about a product or service that is produced by one company and supplied to another. The company being supplied then markets the product as its own, with both sides sharing in the ensuing profit.

White label is one of the commonest online franchises. To lots of folks, they represent the ideal way of beginning a profitable online casino business with really low risks.

There are quite a few experienced developers in the online casino industry who commit to setting up the white label casino enterprise and then sell it off for a song to any interested third party. The third party is assigned the responsibility of marketing the casino brand, though the purchase might or not come with managerial support and the like.

It is often not possible for users of a platform to immediately recognise a white label casino for what it is, though that is not a bad thing.

White label, sweet fun

So, what are the pros and cons of a white label casino? Well, here they are the pros:

Pros

  • Efficient management support

Most white label casino solutions hand over not only the pre-built website but also offer such extras like payment processing options, security, customer support and the like. This makes such casinos easy to set up and maintain, apart from making the operations of the casino as smooth and speedy as possible.

  • Licensing made easy

Once a casino operator has bought a white label casino, he/she does not need to put in an application for a gambling license. Application for gambling licenses tends to be stressful, expensive and lengthy. Rather than going through such torture, the casino operator just makes use of the already existing license of the white label casinos.

  • Speedy set-up

With a white label casino, the foundation is already there. All that a casino operator needs is to brand and pretty it up a little. This enables the fastest possible online casino set up times that can be measured in a few weeks rather than months.

Cons

  • Lack of control

Despite paying good money to acquire a white label casino, the casino operators can only exercise limited control. This limited control often arises as a result of the licensing agreement, which might require a casino operator to process its payments through the white label solution providers. That can be irksome.

  • Hefty long term costs

Buying white label casinos might be very cheap in the short term, but that is another matter in the long term. The biggest con of white label casino is that their providers most often require the enforcement of revenue sharing formula from the online casino that purchased their software. This means that over time, the online casino that purchased a white label solution would be obliged to make hefty payments from its revenue stream. This could cause the casino to bleed to death, so to speak.

Conclusion

White label casino is becoming increasingly popular. They possess a lot of advantages to casino operators looking to get off to a running start. However, they do come with some hefty cons and knowing if these are worth is required.

Summary

Name: The Pros And Cons Of White Label Casinos
Author: Stanley Roberts
Published Date: 22/07/2019