Nowadays, to run a casino means to have a business that pays off very quickly. Statistics of the modern gambling market demonstrates tremendous growth, and the total turnover of the industry is several times higher than the revenues of the cinematography and the music industry taken together.
To become the owner of a casino is an optimal solution, which will provide you with good audience coverage and fairly high profits. Besides, the presence of modern tools and services can significantly reduce both the time that will be spent on the growth of a startup and financial investments that a new owner of a gaming site will have to make.
Specialists from Gaminator Casino have collected comprehensive information on how to launch a gaming site from scratch and also all existing alternatives. In this article, you will find options for the opening of a gambling club on the Internet and learn what a White Label casino affiliate program is and how to become a casino affiliate on very favourable conditions. You can get additional advice on affiliate programs and order the connection service by contacting our managers (the contact information can be found at the end of the article).
Before we start speaking about the ways to launch your gambling project, we offer you to study the current state of affairs in the gaming market.
An analytical summary of the last ten years shows a huge growth in the industry. If in 2008, this field was only beginning its development and brought the revenue of sixteen billion nine million euro, in 2013, the global turnover of the industry reached twenty-three billion eight million euro. At the end of 2018, the market’s turnover exceeded forty-five billion two million euro.
We also have to mention such a feature as a rapid transition to the mobile market. This industry has started developing relatively recently and in 2011, it earned about thirty billion dollars. Two years ago, revenues from mobile casinos have already reached fifty-one billion five million dollars, and these numbers continue to grow year by year.
Experts believe that by 2023, the turnover of the mobile gambling industry will reach one hundred billion dollars.
Such a concept as “white label” has been known in the economic market for several decades. There is a belief that the “ancestors” of this scheme were American DJs who took off stickers from rare platters so that competitors would not recognise the singers and tracks, which are played in discos.
In some years, this method became widespread in the market of electronics, in the restaurant business, and in many other industries.
For the first time, the White Label system was mentioned in the World Wide Web in 2001. The program was launched by the owner of a web resource that was selling mobile phones. The website published an offer to sell the equipment from the catalogue under third-party brands and pay the minimum commission fee for each sale.
As for the gaming field, Microgaming was the first one to create a White Label program. And it was a sensation. Imagine how confused where players and competitors when one day, several dozens of websites with the software from Microgaming appeared at once on the market. The company's products are very expensive, so the opening of each new casino was a significant and rare event. Now the market has literally exploded with new offers. In fact, everything turned out to be quite simple — the White Label casino affiliate was provided to everyone by quite a popular brand Casino Share that works exactly with the Microgaming software.
Such a system is based on the fact of a purchase of goods and services from one supplier and their subsequent resale under a different brand.
In fact, a parent company offers an absolutely ready-made product, allowing for the creation of a new name and another name of the seller and acting as a guarantee of the quality of the supplied goods.
In the United States, this form of interaction has become the most in-demand one. It is widely used by sellers of equipment or owners of restaurants and online casinos, banking institutions, and small loan companies.
In the gaming field, a large brand, which acts as a parent company, gives smaller operators a full set of products and tools that allow them to launch a new casino platform.
As a rule, after an agreement is concluded, providers transfer to the beginning businessmen the following services:
Operators need just to provide a domain name, develop an exclusive design of a gaming site, and introduce various bonuses.
On average, we can describe the White Label formula in the following way: an operator attracts customers and expands the audience and a parent company deals with the customer service.
As a rule, there are two ways of cooperation with a parent company:
Some providers offer packages of services for free, and during subsequent cooperation, they charge a certain percentage of the income of subsidiaries. Although there are obvious benefits to this solution, it also has several disadvantages. Thus, the required percentage of income can be too big or limited services will be provided (low quality of technical support, the absence of promotional tools, etc.).
A very common cooperation scheme is when beginning businessmen pay a certain fee for joining the program. This fee may vary from one to ten thousand dollars. This amount of money serves as a guarantee of serious intentions and helps to drop out unfair entrepreneurs. An additional advantage is a lower percentage of the subsequent profit of an applicant.
The cost of participation in the program depends on many factors. Thus, it may be increased if an operator wants to make additional changes (translate the content into different languages, order design for a gaming site, choose different slots, etc.).
As for the income of an affiliate brand, entrepreneurs receive from forty to sixty per cent of the net income of a gaming club. Such aspects as features of the software, popularity of a parent company, and the quality of an advertising campaign have a huge influence on revenues.
Also, operators are obliged to cover some more expenses as well:
Sizes of bonus rewards are set directly by operators. Expenses on the support for payment systems are also predictable — the level of deductions is known even before the service is connected.
The remaining funds are the net profit of an operator. By choosing a good supplier and a correct way to conduct business, it is possible to pay off initial expenses within four or six months after the website is launched.
Working on the basis of an affiliate program is a very in-demand and common solution that usually brings businessmen a huge success. However, even this scheme has some disadvantages. Thus, after the agreement is concluded, operators will get several restrictions: the absence of a right to choose games independently, as well as payment processors and other components of their sites. Besides, there will be no such options as customisation of the initial software settings and implementation of your own marketing line. Quality of technical support and customer service also remains on the conscience of the parent company.
White Label is a good option for beginning businessmen, and its disadvantages are less significant than its advantages (which we will discuss below). However, there are always several alternatives:
To create a casino by yourself is the most time consuming and costly way.
A beginning entrepreneur should independently study and resolve several issues:
Despite a lot of difficulties, an independent launch is a real and feasible process. However, this is an inappropriate luxury. The launch from scratch requires tremendous time and financial costs, and in this case, an entrepreneur acts at his own risk and has minimal chances of success.
It can be called a good option mostly because its price is very low. In fact, entrepreneurs receive a ready-made product and do not have to spend money even on the design. A disadvantage is a complete dependence on the company that provides services. Even the brand, under which the gambling club is opened, is a property of a franchisor, and holders of a franchise cannot use their names.
This alternative is quite a relevant one. By using this service, entrepreneurs entrust all technical and promotional tasks to qualified specialists.
Employees from Gaminator Casino offer you a large selection of relevant products. You will just have to provide a sketch of the future website, and our employees will deal with the rest. We will bring the most creative fantasies to life, invent the design, integrate games, and provide technical and legal support. It is also possible to ask for a website’s promotion. A turnkey solution is a profitable option that will help you to work on the growth of your brand and not to depend on a parent company.
Despite the dependence on a parent company, by working under the “white label” scheme, you can get some undeniable advantages:
You can open a new casino within just a few days. Entrepreneurs have to develop their own design and an exclusive company-name. Then, the agreement is concluded and the connection to the gaming platform takes place.
Compared with an independent launch, even operators with limited budgets can afford to work under the White Label scheme. If the launch on your own will cost several hundred thousand dollars, then an affiliate program costs about ten times less.
The use of a described program will help you with the creation of a unique brand. Even if a contract will be terminated, you still can use your own name.
By signing a contract, you get several elements, which can be launched and used by players immediately. You just have to pay commission fees and make money.
Parent companies deal with all big payouts. This item is prescribed in the contract and saves operators from huge financial costs. Entrepreneurs are only liable for bonus programs and payouts according to promos that were organised on their own initiative.
Parent companies also provide technical support.
This company has a vast experience, the best business arrangements, and a large selection of tools for the creation of this kind of business.
We gladly offer you relevant White Label casino affiliates, ready-made platforms, payment processors, and slots from famous providers. Our catalogue includes solutions from Playtech, NetEnt, Microgaming, Igrosoft, Amatic, and Novomatic.
Experts from Gaminator Casino will find an individual approach to each client and offer relevant solutions at the most attractive prices. Moreover, you can order the creation of a turnkey casino. Just tell us about your ideas and a general concept of a project, and our specialists will do the rest. They will resolve all technical issues, provide legal support, deal with advertising of your gaming site, and also, you will get a guarantee that your project will be paid off in six months after it has been launched.
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