White Label vs Turnkey: which iGaming Platform to go for?


White Label vs Turnkey: which iGaming Platform to go for?

Which one offers better solutions for your online casino’s key components such as software and licensing, White Label platform or Turnkey platform?

The iGaming industry is quite sizable, and it is growing day-by-day. Quite a few people have ambitions of entering it every year, yet only a small portion succeed. A big part of this is how challenging sorting out some key components, such as games, auxiliary software and licensing can be. However, there are plenty of solutions that can massively help start-up operators with these important aspects, with the most prominent ones being iGaming platforms and their offered solutions. Developed by specialized B2B providers, the two most popular types of platforms are the White Label and the Turnkey, with each one delivering a completely different experience. But what is a white label solution, and how does it differ from a turnkey platform anyway?

Table Of Contents

What is a White Label iGaming platform?

A White Label platform is a specially developed solution that is designed to take care of almost all aspects of an iGaming operation. A service like this will typically have minimal upkeep for the operator, it will be ready to go, waiting to get a logo and a brand name assigned. That’s where the name White Label comes from. These solutions are usually the easiest way to start a new online gambling and/or betting brand, no matter if it’s your first or your tenth.

If a White Label platform does most of the work, what are the responsibilities of the operator?

The operator’s responsibilities will vary depending on the platform developer. Some developers may need the operator’s input on some variables, while others may not require much additional work. Generally, though, the only thing an operator has to do is take care of the branding. Everything from the brand name and logos to various marketing activities such as affiliate management. An operator will be tasked with creating advertisements and running marketing campaigns to acquire new players. Having an established brand as a company or as an influencer will usually net a stronger performance and better results. The platform developer will be handling everything else.

What is the difference between a White Label platform and a Turnkey platform?

turnkey platform

A turnkey casino platform is a custom-built solution that integrates iGaming content into a single user interface, providing software and technical assistance while giving the operator complete control over its business.

Turnkey platforms take a longer time to set up since operators must source everything but the games themselves, such as obtaining a gambling license and dealing with payment solutions. White Label platforms, on the other hand, allow online casinos to operate under the provider’s license, enabling them to enter the industry considerably faster without having to worry about reporting to regulators.

Turnkey platforms do present some advantages, such as a higher level of customizability as compared to White Label, where most aspects must be agreed upon with the supplier. There is no better or worse here; each online casino needs a specific platform that meets its requirements to operate effectively. Let’s go further into the advantages and disadvantages of each platform to see which is better suited for you and your business.

Advantages of a Turnkey solution

Customizability and Expandability

A Turnkey platform will allow a much greater degree of personalization than a White Label service. Typically the former enables an operator to utilize the payment providers, player retention services, and other important casino modules of their choosing, apart from the games. This also allows for a much higher degree of fine-tuning of the various important variables throughout an iGaming website, such as promos and withdrawal limits. Moreover, Turnkey Platforms make adding additional software down the line much easier, enabling operators to continuously expand their offerings in a way that perfectly caters to their audience. This has the added benefit of allowing iGaming businesses to integrate sports wagering services relatively seamlessly, giving Turnkey Platforms a sizable edge over their White Label counterparts.

Potential to have a richer offering

With the ability to customize the entirety of the platform outside of the games, a Turnkey software solution can enable an operator to gather a much bigger catalog of features. It will also allow an operator to deliver a much more feature-rich experience. Additionally, adding or removing baked-in products from a turnkey platform will be easier, as each product won’t be set up to share data and work with a number of different services.

Cost

Cost is one of the larger advantages of turnkey gambling platforms, as turnkey platforms will usually not only cost less, but they will also typically involve a one-time payment, as opposed to a subscription. These savings will be especially noticeable in the long term, as the monthly fees compound to large numbers.

Disadvantages of a Turnkey solution

Involvement

A Turnkey gambling platform, while offering quick and easy integration of content, will require a lot of effort to set up a final operation. This matters especially if the operator has a smaller team and budget, as integrating all the required services that an online casino needs will take a lot of time, speaking of which…

Time

Closely related to the previous weakness, the time required to complete and finalize a gambling business is significant. Larger operators may not see this as too big of a disadvantage, but for smaller teams, this might be the biggest one, as they are typically running with tighter budgets and cannot afford to wait a longer period to see a return on their investment.

Technical Knowledge

Advanced technical expertise is quite important with a turnkey software platform. It will be required for all sorts of tasks during the integration process and for maintenance. This will require a small team of programmers, who are always in high demand, making it even trickier. Furthermore, the operator will also need a decent amount of technical knowledge to find compatible software packages to combine with their turnkey casino platform, which is another challenge in itself, and conveniently the next point we are going to cover.

Compatible Software

Closely related to the previous disadvantage, finding compatible software that will play nicely with the games from a turnkey platform can be quite tricky. Some game developers may have built-in integrations with a number of auxiliary providers, but because of how big the industry has gotten in the past few years, it is a rare occurrence to land a perfect pairing with all casino systems.


Advantages of a White Label solution

Licensing

Licensing is a major upside of a White Label platform. Utilizing a White Label gambling solution, an operator doesn’t need to worry about licensing, as the platform developer takes care of that for them. White Label platform providers typically hold master licenses that can be expanded to include their associates, vastly reducing the time required and the complexity of deploying an online casino or betting business in a new jurisdiction. Most renowned casino software providers have a collection of different licenses that would take an operator months to obtain. Additionally, this system allows operators to save time by not having to report to numerous gambling regulators, as they only have to do so to their platform’s developer, who then deals with all the appropriate government agencies.

Features

A White Label casino solution, as the name suggests, offers a much more feature-rich experience. One of the most useful features that turnkey platforms usually don’t provide is automation. A lot of White Label solution developers include excellent automation tools in their products. However, that doesn’t mean that with a Turnkey solution an operator cannot gather the same features, though some White Label platform developers work closely with the creators of various modules to produce special integrations between different systems in their platform that are exclusive to them. An operator using a Turnkey service still could recreate solutions like those, although it will be quite an undertaking. Consequently, that’s another point where White Label software solutions shine.

Ease

Being one of the most important aspects for operators with smaller teams, this one is pretty self-explanatory. White Label solutions, in the vast majority of cases, do not require any technical expertise or much work to set up. They will not require programming knowledge or the time required to integrate multiple services with each other. All of this makes for a very quick set-up process, which just so happens to be the next advantage of White Label platforms that we are going to look at.

Speed

Speed, being one of the biggest downsides of Turnkey platforms, is one of the most prominent upsides of White Label solutions. With the latter, an operator can get their business running in days, if not hours. Getting up and running quickly is of utmost importance for start-ups, as mentioned before because they will generally not have deep enough pockets to keep investing into their businesses with no results for a period. For larger companies, this won’t matter as much, although getting immediate results is still a nice luxury.

Disadvantages of a White Label solution

Customizability

Customizability is something that is more difficult to achieve with an all-in-one solution. While it is possible to request the removal of some features from some platform developers, it is pretty rare. Consequently, adding features is even more difficult to achieve as there are even fewer developers offering such services. A Turnkey platform, although still somewhat limited, on average will allow endless personalization of the features outside of the content. Although, the idea of removing, adding or changing products from a media-only platform is much more prominent and easy to accomplish.

Cost

One of the biggest cons of a White Label platform is the cost. Having someone else go through the process of a functional iGaming business that needs a logo and some branding will not be cheap, although it is important to remember that the majority of the price is paid once the business is up and running, not upfront. There are a couple of ways a platform developer may request their payment, which will be explored up next, although they are all monthly fees that reduce the barriers to entry significantly.


How do White Label providers make money?

White Label developers in the majority of cases earn their money through subscriptions, as massive upfront payments would not sit well with the ethos of enabling smaller-scale operators to get access to high-quality online gaming services. However, there are two types of revenue share models: percentage share and flat fee subscription. Let’s explore them further.

Percentage share

Percentage share models involve pretty much exactly what it says on the tin, a percentage of the revenue that is shared with the developer. Depending on the features, set-up times, and a bunch of other factors the percentage can vary quite a bit. Some platform companies that use a percentage share model will have contracts that allow the rate, as well as the term and a couple of other things to be negotiated. In contrast, others may not allow any negotiations at all. With this model the operator will pay based on their earnings, meaning that during a weaker period the chances of going under are lower, although quite a few platform developers will have a minimum payment.

Flat fee subscription

Similarly to the previous model, flat fee subscriptions are self-explanatory as well. The operator has to pay a fixed fee, in most cases every month. Again similarly to a percentage share model, costs can vary a lot. Unlike the previous model, though, there’s no safety net in case of a subpar performance period. The risks are higher with this one, although with high risks come high rewards. If an operator manages to excel and grow, they will grow their revenue faster. In contrast, a percentage share model will slow down revenue growth by a bit, although for larger operators there might be a significant difference.

Which one suits you and your business best?

white label or turnkeyAmongst the sea of options of both Turnkey and White Label casino solutions, which type is the best for you? Like many other things in the industry, it depends. If you have nothing but some cash and wish to have your own online gaming or wagering company, a White Label platform seems like the best place to start. If you have a lot of resources and maybe even a team, it will still be a great option to start immediately. However, a Turnkey casino solution will suit you better if you want to turn every virtual knob, control every aspect of your operation, and have the funds to back it up.

Starting an iGaming business with a White Label solution

A White Label platform suits anyone but the largest and pickiest operators, so it’s a great option to explore. The first thing you should do in the process is find a reputable provider. The most optimal place for this would be the internet, through various articles and lists, such as our iGaming B2B directory. Find a developer that has been around for a reasonable amount of time and has been tested through time. Additionally, developers with more certifications and licenses will generally offer a higher quality service than those who have significantly less or none at all. After doing extensive research, the only thing left to do is contact the company of your choice. Proceed with their instructions and do what they recommend for their services. It shouldn’t take long to be fully up and running, as that’s the beauty of White Label solutions.

Conclusion

To conclude, White Label platforms offer more of a premium experience than Turnkey solutions. They are suitable for anyone but the most established and scrupulous operators, as most offer high-quality products that the majority of their customers will be satisfied with. They are more expensive than Turnkey platforms, though, as they do the hard work for the operator. The only thing left to the latter is of course branding and marketing. White Label software solutions usually require monthly payments, utilizing either a percentage share model or a fixed, usually monthly fee.

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