What is a white-label model in poker?
White label is a business model in which one company produces goods or services, and another sells them under its own brand.
At the same time, the company provides its client with a ready-made gaming environment. A novice entrepreneur does not need to think through the business – the strategy of his product, the technical part, the marketing campaign, and the legal aspects related to product licensing. The supplier will solve all the issues and take responsibility for a large number of business processes for himself.
Advantages of the white-label model
- Small budget. If you have a limited budget, then this model is created for you. Operators do not need to spend money on backend development and marketing campaigns.
- Fast start. Entrepreneurs don’t need to spend time developing and promoting the product. As soon as the network provider sets up the room, the operator can invite players.
- Sublicense. For operators, it’s unnecessary to obtain a gambling license. The White Label grants them a sub-license.
- Large range of services. In addition to a license, software and a marketing company, vendors frequently offer integration of payment systems, and ongoing technical support for both young businesses and their players.
- High liquidity. The network ensures that users of the poker room will have an opportunity to play with someone. This fact increases engagement and keeps players coming back to the game.
Disadvantages of the model
- Reputational risks. If an operator buys a product from a supplier that has a bad reputation in the gambling community, he might be negatively perceived as a poker room.
- Lack of complete autonomy. All technical aspects, and the final appearance of the product are completely determined by the manufacturer – therefore, you are unlikely to be able to make significant changes to the product, or upgrade it.
- Lack of financial guarantees. Despite the fact that the supplier provides an operator with a practically finished product, no one can guarantee a stable profit.
- Commission. The supplier, offering you a turnkey solution, will take a fixed percentage of commission on sales. Its size is determined by the contract concluded between the client and the supplier.
I want to create a poker room. Does the white-label model suit my needs?
Yes, if you:
- Have relatively little experience in the iGaming industry.
- Don’t know where to find potential players.
- Have a limited budget.