White Label Casino as a Respectable Business
Online Casino Market invites you to get acquainted with the features and benefits of an iGaming franchise, as well as learn more about the financial side of the issue.
You can order a worthy gambling project with a wide range of equipment from our aggregator studio. Leave a request and get a free demo version of the product!
This concept is based on the fruitful collaboration between the parent iGaming company (franchisor) and the subsidiary brand (franchisee). The operator interacts with gamers and offers them gambling entertainment on its behalf.
The parent company provides a ready-to-launch product. The solution contains a catalogue of video entertainment, a system with administrative settings, financial instruments and other useful components.
The task of the manager is to come up with a name for the gaming site and promote it using solvent internet traffic.
The cost of software varies between $1,000 and $10,000. There are cheaper and more expensive products — it all depends on the reputation of the parent brand and the equipment of the internet platform.
The profitability of such a solution is calculated according to the following parameters:
Net gambling revenue of a subsidiary brand. The amount is defined as all the bets of gamers in the online casino minus their winnings.
As a rule, the franchisor "gives" the operator 60% of the GGR (sometimes more or less). The remaining 40% is a conditional rental fee for high-quality software.
Current gaming expenses include the payment of bonuses and incentive gifts, financing of one-time promotions, and interaction with affiliates.
In addition to marketing costs, the entrepreneur is responsible for covering the commission of payment systems and renting a domain
The net income of a businessman is calculated as the sum of GGR minus CGC.
It is important to understand that the franchisee operates as a separate legal entity, which entails the payment of income taxes. As a rule, the tariff rate fluctuates in the range of 2–20% depending on the jurisdiction
Subsidiary brands "give" to the parent providers about 40% of net gaming revenue every month. The percentage is fixed, but it may vary depending on the terms of the contract.
Let's look at what exactly the operator receives according to the scheme:
- Prestigious jurisdiction licence. The key advantage of the program is that the franchisee does not need to issue a permit on their own. Thanks to this, the entrepreneur saves tens of thousands of dollars and redirects them to the strategic development of the business. As a rule, the manager operates under a sublicence that was previously issued to the parent company.
- Gambling site hosting. The franchisor bears the cost of renting hosting — physical or cloud servers that store all information about the operation of the casino business. These are backup copies of financial and accounting documents, player data, technical teams and development scenarios.
- Gaming system. This is the basis of any iGaming project. The franchisor provides a powerful backend with a set of basic commands for managing gamer accounts and administering a gambling site.
- Entertaining content. The video game package includes slots, bingo, poker, lottery draws from Microgaming, NetEnt, Habanero, Evolution Gaming and other developers that everyone is talking about.
- Financial instruments. A good White Label casino is connected to at least five payment systems, including such international products as Visa and MasterCard. The parent company provides a multi-currency environment with support for payments by bank cards, electronic money, mobile and crypto transfers.
In addition to supplying a reliable casino platform with a rich “stuffing”, the franchisor takes on a number of tasks for the operational maintenance of the business. The parent brand is responsible for the maintenance of the players, accounting, consulting franchisees.
All this reduces the operator's current costs for paying wages, contributions to social funds, renting specialised software (for accounting, supporting multi-channel support).
The scheme is a win-win way to quickly enter the iGaming market. The search for a platform must be approached carefully in order to get a project with high profitability and growth prospects.
Consider the nuances of choosing a worthy program:
At the beginning of 2021, the total capitalisation of the iGaming market was divided into the following sectors:
- sports betting — 48%;
- online casino (slots, table and live games) — 24%;
- lottery draws — 10%;
- online poker — 8%;
- other gambling (bingo, keno, fantasy sports) — 10%.
Most investors pay attention to online casino and sports betting startups.
Do not limit yourself to a narrow list of products. Products such as e-sports, lotteries and bingo perfectly complement betting site franchises under the White Label agreement. Gaming administrators can integrate a betting line on a gambling website to attract additional traffic.
In the world, 70+ countries issue permits for online gambling, but not all of them allow sublicences (the main component of the scheme). In addition, the internationality of projects is important for operators, which can only be achieved with offshore zone licences.
Consider the permissions of which regulators will be in demand in 2022:
- Curacao. The most popular jurisdiction for White Label companies. It will take businessmen 2–3 weeks to obtain a sublicence. The Netherlands Overseas Territory offers a simplified business registration procedure and a loyal tax policy. The fiscal burden on business is 2% of net profit. Since 2018, Curacao has been issuing licences for bitcoin platforms.
- Malta. The local gambling regulator puts forward more stringent requirements for licensees, but the more valuable is the permission for gambling in this island nation. Having a Maltese licence is a sure signal to gamers and B2B partners that an operator can and should be trusted. The country has simplified taxation for iGaming companies (annual fee does not exceed 5% of net profit).
At the same time, it is very difficult to immediately cover a large number of sales markets. Gambling administrators need to maintain the high quality of entertainment services, respond in time to changes in legislation and, in general, compete with 4,000+ gambling companies.
It is much easier and more efficient to start working in two or three local markets and only eventually start investing in new regions. You need to decide on a particular business location even before buying a project.
Consider several promising iGaming markets:
- Northern Europe. Legislation in most countries (Sweden, Finland, Iceland, Norway) does not contain a direct ban on the operation of gambling sites with a .com domain name. All types of online gambling are allowed in the region — cards, lotteries, slots, bingo, bets. Gamers from Sweden are among the world's top three players with the highest lifetime value (LTV).
- Southeast Asia. In countries such as Cambodia, the Philippines, Malaysia, Vietnam, South Korea, there is a huge demand for live games. Gamblers like the live format of communication with dealers.
The popularisation of the iGaming project is the responsibility of the subsidiary. Moreover, in order for the ready-made gambling site to turn out stylish, and not faceless, it is necessary to invest in iGaming advertising.
The main expense items of the gambling operator:
- Creation of a unique brand. A businessman needs a modern gaming site with an up-to-date colour scheme. It is core to develop a recognisable corporate identity and follow it throughout the creation of all marketing products — from internet banners to slogans in advertising campaigns.
- Promotion on your own. Effective methods include SEO (popularisation in the top queries in search engines) and SMM (advertising through social networks — Facebook, Telegram, WhatsApp). High-quality internet traffic can be attracted thanks to casino chatbots in social messengers, but this option must be provided by the franchisor.
- Cooperation with affiliates. Private webmasters and partner companies place referral links on independent sites. For their work, affiliates receive a percentage of the profits or a fixed amount.
The promotion of an iGaming project is quite a costly business, so don't forget about free marketing tools. You can set up a CRM service for personal requests, activate the traffic delivery system, integrate Google Analytics and any other software for assessing the target audience.
Order a profitable start-up from Online Casino Market.
We offer flexible terms of cooperation, a complete set of video games, and a powerful backend with a wide range of settings.
Our firm cooperates with prestigious gambling regulators, including Malta and Curacao, and also promotes iGaming products in key markets. Just select the region you are interested in, and we will do the rest of the work for you.
- The strong points of such platforms include a quick entry into the market with optimisation of current costs, guarantees of payment of large winnings by the parent company.
- To start making money on the scheme, it is vital for an operator to decide on a licence and a business plan, and choose a region for distributing gambling content.
- The subsidiary is responsible for promoting its brand. This is the creation of a corporate identity for an iGaming site and its effective marketing promotion.
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