If you’re considering running a gambling web app, you will sooner or later face the dilemma of what software solution to choose. While for established and experienced operators the answer to this question is simple, many newcomers need to first research the choices and their pros and cons.
Luckily, the gambling industry is prepared to welcome all kinds of operators; those who just want to start things rolling with a minimum commitment and budget and those who aspire to create something big.
Let’s break down the three most common software solutions to create a gambling web application: White Label, Turnkey, and Custom Software.
White Label, Turnkey and Custom software – an overview
Let’s begin with a short glimpse of what these three types of software solutions are, starting with the one that is the most accessible entry coupon to the online gaming industry.
White Label is a solution where all key components, such as the software, license, or payment methods, are provided by an external supplier. You get a ready-to-launch gambling platform, with customer service and technical support included. You can compare it to running a franchise like 7-Eleven or McDonald’s: you pay for a bulletproof infrastructure, but you’re limited to the provider’s standards. White Label gambling apps are often referred to as „off the shelf” solutions.
Turnkey is similar to White Label in the way that you’re provided with a ready-made platform. The difference is that you get full rights to modifying and optimizing it within the given system. You can create your designs, but the range of customization is limited to the Content Management System (CMS). Unlike White Label, you need to manage licenses and compliance reporting on your own.
In contrast to the previous two, Custom Solution is a fully independent way of building an online gambling app. You’re not limited to any platforms’ features or designs, and you’re fully responsible for managing the licenses and legal compliance of the brand. Custom casinos, sportsbooks, iGaming services, and other gambling products are either created with in-house IT teams or gambling app developers like ourselves. Custom platforms’ operators have unlimited levels of personalization, as well as full ownership of user data.
Pros and cons of White Label
Let’s break down the most significant advantages of White Label solutions. The first one would be a quick, cheap, and effortless launch. You don’t need to deal with any of the issues that operators using different solutions do. All the necessities to launch a fully functional platform, both technological and legal, come at a price.
Not only is the launch more accessible, but so is maintaining and managing White Label. In most cases, a third-party provider will supply you with all but marketing support, so acquiring new players is your only point of focus. You can narrow down your scope of work to just one thing and do it right.
On top of that, White Label is cheap. Or, let’s say, relatively inexpensive. It’s the most cost-effective way to enter the gambling industry. All the money that with Turnkey or Custom software you’d spend on getting a license or hiring developers, you get to invest in promoting the product.
On the other hand, such products are usually billed on a subscription system, and with a large number of players, the cost of it exceeds the cost of creating custom solutions in the long run.
Additionally, with White Label you get the ease of launch in exchange for customization freedom. This is a huge disadvantage for those who crave creating something unique.
Limited flexibility in design or product development is not the only curb that you will face when engaging with White Label solutions. The price for a „ready-to-go” product is limited earnings. The revenue share may vary depending on different providers, but you can assume that around 50% of the profit will go to the third-party’s pocket.
Finally, because White Label solutions are ready-made, you enter a highly competitive market, where similar operators compete for the same audience. Without market differentiators, you can’t create your niche of players, nor you can establish a unique position in the industry.
Pros and cons of Turnkey solutions
As an intermediate solution between White Label and Custom, Turnkey allows you to market your gambling web app faster than if you were to do it from the ground up, but far from „here and now”. You need to take care of a couple of major things, such as custom designs or licensing, and they are both time and money-consuming.
The above argument follows that you’re allowed to customize the platform entirely but within the given framework. In most Turnkey agreements, you become the solution’s owner, but it’s a standalone solution nonetheless. You could compare it to a Lego set: you can build whatever you want from the pieces, but you’re still forced to use them as the building material.
Finally, depending on the agreement, the Turnkey solution provider usually charges from 10% to 30% of the revenue, so you get most of the profit share, but not all of it. You do own the platform, but the third party that provides it will typically charge you a monthly fee or a share in the revenues.
Pros and cons of Custom Software solutions
Let’s take a look at custom gambling web apps. The first and foremost advantage is unlimited business potential, coming from unlimited customization and personalization. You’re entirely on your own, and no provider or any other third party can decide about your web’s feed and limit your scalability or marketing efforts. You have total freedom of modifying the platform and adapting it to your needs.
Unlike off-the-shelf solutions like White Label or Turnkey, you can create your own unique gaming experience too. This is a crucial factor if you want to succeed in the highly competitive market that online gambling is. It’s easy to fall into the ocean of similar web gambling apps fighting for the same pool of low-potential players. With Custom Software, you’re the one who can make the market adapt to your software, not the other way around.
Finally, as an independent operator, all revenue stays in your pocket. Once you establish the website, you don’t have to cover any platform-related costs from agreements with third parties.
The fact that you own 100% of the product comes with risks too. The major disadvantage of a self-serviced gambling web app is the high initial cost and the longest time to launch compared to other solutions. Custom gambling web app is a long-term strategy, which requires a specific budget and time-to-market.
You can’t create a custom solution without a team of IT experts either. You need to recruit, manage and maintain a team of developers, or hire an external provider who will take care of the technological development.
Gambling web app – choosing the right solution
Having mentioned all the above advantages and disadvantages of each software solution, we can point out who will benefit most from which.
White Label solutions are designed for those who are looking for a low-risk, low-reward business model. If you want to enter the gambling industry quickly, with a minimum commitment, and your budget is not enough to cover the costs of a dedicated solution, White Label will fit you best. You don’t need to invest much money or time to verify your business assumptions, but you can’t expect a significant outcome either. White Label is a hit-and-go strategy.
Turnkey software will suit best those who value independence within a limited framework. You might already have sufficient capital to maintain a team of developers but not big enough to create something from scratch. If you’re aiming for an independent web gambling app, and you’re okay with its fundaments being built by a third party, then Turnkey is your choice.
Custom software solutions will cover the needs of entrepreneurs who want to leave their gambling industry footprint. If you’re going to achieve big things and bring unique value to the world of iGaming, then you should consider going for a fully self-serviced solution. You need sufficient funds to create a platform that is tailored to the needs of the market and your expectations. That option is the most expensive, but it would make it possible for you to dominate the market when done correctly from the design and the technical perspective.
Being software developers ourselves, custom solutions are our favorite in this race. What we learned from delivering more than ten gambling projects and working with the best companies in the industry, they are the most significant way to achieve big things.
The fact that you aren’t limited in any terms, be it customization, scale, or revenue, allows you to unlock your full potential and create a unique gaming experience, that will differentiate you from the competition.
We don’t depreciate White Label or Turnkey solutions, however. They serve their role to those with a limited budget or lesser business aspirations. Not everyone craves complete independence either, as it comes with more responsibility.
If you hesitate in what way would be best for you in particular, feel free to reach out to us. We’d happily share our knowledge with you and help you choose the best solution, whether it’s White Label, Custom, or Turnkey.