Whether you are an experienced businessperson or are just getting your feet wet with entrepreneurship, starting an online casino is a unique possibility you may not have considered.
The explosion of online commerce has created a wealth of opportunities for potential businesses, and gaming is no exception. Previously, when brick-and-mortar was the only option for casinos, there was a tremendous startup cost in terms of both physical property and starting capital for the games.
White label software makes it even easier to get started. It’s a particularly attractive route if you’re a beginner with an interest in online casinos but don’t have the manpower to handle every aspect of the business.
How to Start Your Own Casino: What Is a White Label Business?
White label business refers to the practice of reselling goods or services produced by another company using your own branding. That way, you can focus on selling the product and administrating your business without needing to pay undue attention to the actual creation or manufacturing of the product.
If any of this strikes your fancy, read on to learn about four of the most crucial factors you’ll need to consider when starting a business of this type.
1. Choosing the Right Software
As a white label casino, you will be reselling third-party gambling software, also known as iGaming software. These will typically include several types of popular casino games, allowing you to pick and choose what you would like to offer your customers. A typical solution will offer a number of options for customising the behaviour and appearance of the software so that you can apply your own unique branding.
A significant benefit of reselling software is that security is taken care of by the provider. For example, many games require generation of random numbers. Any flaws in the design of the random number generator could lead to predictable outcomes during the games, exposing your business to considerable risks should the flaws be discovered.
Depending on the provider, they may offer services beyond just the software. These could include payment processing (see below), website design, and third-party customer support.
2. Handling Payment
Billing is an essential, but often overlooked, component of any business that deals with a high volume of monetary transactions. To satisfy the widest possible range of customers, you’ll need to handle a variety of payment types and currencies.
Due to the nature of the gaming industry, it tends to attract an inordinate amount of criminal activity. Beyond the usual security issues like hacking and collusion, you’ll also have to contend with fraud-related activity such as money laundering.
As mentioned above, white label providers often offer solutions that include handling payment. Many of them have special arrangements with third-party payment processors, saving you the headache of having to deal with billing issues.
3. Marketing
As a white label business, your primary focus will be on marketing. There are multiple channels you could take advantage of to reach potential customers, including paid Internet advertising, physical ads in newspapers and magazines, and content marketing.
Above all, you’ll want to invest adequate resources into the construction of your website. Since your site will be the main point of contact with potential customers, it should be attractive, simple, and informative.
Attracting new players means offering them the right incentives. In the online gambling world, this generally means bonuses. Deposit bonuses are a common example, where a new customer’s deposit is matched by the casino up to a certain amount. For example, if a customer deposits £50 and you offer a 100% deposit bonus, then the customer is given £100 to play with.
On one hand, this can give you an edge in a competitive industry. On the other hand, it means you’ll need a decent amount of startup capital.
A common pattern is for newer entrants to the market to offer more attractive incentives. As a site grows in experience and credibility, it typically pulls back, relying on its popularity and reputation to keep new players trickling in. This gives new businesses an opportunity to offer better bonuses than those established sites, continuing the cycle.
4. Dealing With Legal Issues
Gaming is a legally sensitive industry, and running your business online does not do much to offset that. Thus, you will want to pay extra attention to any relevant laws and regulations when you are getting started.
The legality of operating a business of this nature will vary by country and jurisdiction, ranging from vary lax rules to outright bans. In the UK, online gambling is legal and effectively regulated. That said, the details of licensing your business and complying with regulations can sometimes become complex. Needless to say, it’s important to retain adequate legal counsel if you plan to do business in this area. Some white label providers will help you take care of licensing issues.
Final Thoughts on Starting a White Label Casino
There’s no doubt that the ease of starting a white label business makes it a very attractive proposition for many potential entrepreneurs. You are able to focus on your strengths as a marketer and leave the technical elements to those who specialise in creating software.
At the same time, it’s easy to find yourself in over your head. Your success as an entrepreneur will depend on your skill level, experience, and confidence. For the right person, a white label casino can be the perfect venture to test the waters in online business, or even create a significant and consistent income source.