Both offer solutions for those looking to operate an online casino without significant investment in infrastructure or full website development. However, the differences between them impact how operators manage their businesses, their profit margins, and their level of control over operations. inplaySoft highlights some key characteristics of these two models.
What are white label and turnkey casinos?
White label casinos are online casino platforms that have already been developed and are operational but can be customized for another operator. In this model, the operator purchases a ready-made solution and simply brands the platform with its own visual identity, including logo, name, and colors.
This solution allows the operator to focus on marketing and casino management, while the provider handles the technical aspects, such as game offerings, customer support, and payment processing.
Turnkey casinos, on the other hand, offer an even more comprehensive solution than white label casinos. In this model, the operator receives a fully functional platform but with greater freedom to customize the casino's appearance and technical and operational aspects.
The term "turnkey" refers to the idea that the product is ready to use as soon as the "key" is handed over to the operator. In other words, everything is provided to ensure the casino is operational, including software development, integration with game providers, support, payment management, and other services.
White label casinos: advantages and disadvantages
Advantages
- Lower initial cost: White label casinos require lower initial investment compared to turnkey casinos, as most of the infrastructure is already in place, and the operator only needs to pay for the license and platform customization.
- Quick implementation: Setting up a white label casino is faster than developing a platform from scratch or using turnkey solutions. The operator can have an online casino up and running within days or weeks, whereas creating a fully customized platform can take months.
- Comprehensive technical support: The white label solution provider handles technical aspects such as software updates, security, and technical support.
- Lower operational risk: Since the platform is already tested and operational, the risk of major technical issues is lower. Additionally, the operator does not have to deal with complex licensing and regulatory matters, as these are managed by the provider.
Disadvantages
- Limited control and customization: While the platform’s appearance can be customized, functionality and feature customization are limited. This can be a drawback for operators looking to create a unique experience for their players or incorporate special features.
- Dependency on the provider: The operator relies on the provider for maintenance, game updates, and support. If technical issues arise or the provider fails to meet commitments, the casino may experience disruptions.
- Lower profit margins: Since the provider takes a share of the profits or charges fixed monthly fees, the operator's profit margins tend to be lower compared to more customized solutions.
- Marketing and branding limitations: Although white label casinos allow some customization, branding options are limited. Many casino operators prefer greater control over their brand identity, which is not always possible with white label solutions.
Turnkey casinos: advantages and disadvantages
Advantages
- Greater control and customization: One of the biggest benefits of turnkey casinos is the freedom of customization. The operator can tailor the platform to its needs, from the user interface to features and payment methods, ensuring a unique and differentiated experience for players.
- Full ownership of the casino: Unlike the white label model, where the casino infrastructure belongs to the provider, the turnkey model gives the operator complete control over the operation.
- Potential for higher profit margins: With fewer intermediaries involved, turnkey casino operators can enjoy higher profit margins since they do not have to share their earnings with the platform provider as significantly as in the white label model.
- Comprehensive support in casino creation: Like white label casinos, turnkey casinos also offer technical and operational support, but in a more extensive manner, as the platform is entirely built for the operator with greater customization.
Disadvantages
- Higher initial investment: Turnkey casino development costs are higher due to increased customization and possibly the creation of new features. This initial investment can be a barrier for entrepreneurs with limited budgets.
- Longer implementation time: While the white label model can be deployed quickly, the turnkey model requires more time for development and launch.
- Greater operational complexity: Although turnkey casinos provide more control, they also come with greater complexity. The operator is responsible for all casino operations, including maintenance, updates, payment management, customer support, and regulatory compliance.
- Higher risk of technical failures: Since the platform is customized, the risk of technical failures is higher, especially if development is not well-executed.
Which Is the best choice?
The choice between a white label and a turnkey casino depends on several factors, including budget, available time, desired level of customization, and operator experience. White label casinos are ideal for those looking for quick, cost-effective solutions with lower operational risk. Turnkey casinos, on the other hand, are better suited for operators who want greater control over their operation and are willing to invest more time and resources to achieve a higher level of customization.
In general, the white label model tends to be the best choice for beginner entrepreneurs or those with limited budgets, while the turnkey model is ideal for operators seeking more control and having the resources to invest in more robust and customized solutions. Since both models have advantages and disadvantages, the right choice will depend on each operator’s priorities and goals.
Source: inplaySoft
