White label vs turnkey casino solutions: what works best for your brand?

Both white label and turnkey solutions will give you a head start in the online gambling industry. You don’t need to concern yourself with building the complex infrastructure required to host and launch an online casino, but you can still control the messaging and marketing around your casino brand. 

Which option is best? In this guide, we compare white label vs turnkey casino solutions to help you find the best option.

What is a white label operator?

A white label operator acquires the gaming licenses and builds the operational framework needed to run an online casino. It then grants casino brands access to this pre-built platform.

The casino gets a ready-made platform with games, payment systems, and licenses. It can choose a specific white label model that matches its goals and customization needs, and it doesn’t have to worry so much about the technical or regulatory side of running a casino.

A complete setup for white label casino solutions usually takes a few months—a fraction of the time needed to build a casino in-house from scratch.

Key features of the white label model

White label solutions come with a complete tech stack and operational framework, providing features such as:

• Faster launch: After building a tech stack, applying for licenses, and then considering all aspects of marketing and support, the casino development process can take years. However, it usually only takes a few months to launch an online casino with a white label model.
• A pre-built platform: The brand builds on an existing, tried-and-tested platform used by all other white label clients. Typically, these platforms have been finely tuned over years of use and offer high performance for both the player and the operator.
• Provider-managed infrastructure: If the platform crashes or a feature stops working, the white label client can simply contact the provider’s tech support team and wait for them to fix it.
• Lower-risk way to test the market: A white label casino doesn’t need to be the final solution. It can serve as the first step—a cheaper way of testing the market before committing to a larger project.
• Limited customization: Casinos can customize some aspects of the platform, but many are controlled by the provider, including key aspects of UI and UX, thus limiting flexibility.
• Shared operational framework: The fact that the framework is shared across multiple casinos means it can be hard for a brand to truly differentiate itself from the competition.

What is a turnkey setup?

A turnkey casino also offers a fast-track solution, but it gives operators the freedom to decide on licenses, payment options, branding, customer support, and other key operational aspects. 

The more comprehensive turnkey solutions offer licensing packages, whereby the provider deals with regulatory aspects. But a casino brand can also choose to go it alone, acquiring licenses from jurisdictions where it wants to operate.

The complete setup process takes longer than with white label solutions, but it accords the casino more flexibility and freedom, and may be the preferred option for larger brands that want to retain control.

Key features of turnkey software

Turnkey casino software grants more control. Rather than moving clients onto a pre-built platform, it gives them a head start and allows them to build their own casino:

• Own gambling license: Although acquiring a license can be a long, difficult, and expensive process, the casino can target licenses in specific regions, rather than relying on the existing regulatory framework that restricts them to specific jurisdictions. They can also choose a licensing package from the provider.
• Full control over operations: The casino stays in control and doesn’t rely on a white label provider or its tech team, nor is it restricted by the provider’s terms.
• Customizable casino brand: The operator can build a casino that looks and functions as intended, with gamification and other custom features that align with the brand’s goals and vision.
• Flexible integrations: Using game API integration, the casino can work with any game providers of its choosing, hosting unique online slot games and live dealer games, as well as promo tools. 
• Scalable infrastructure: As the casino grows and its business goals evolve, it can upgrade its infrastructure. 

White label vs turnkey casino solutions: How they compare

Both a white label and a turnkey casino solution provide operators with a professional platform on which they can build a custom brand. Payments are secure, and CRM features manage everything from analytics to customer support.

There’s also a wide range of online casino games available via both options. Casinos can host live dealer games, table games, and slots like Lucky Goal and Lucky Honey with either option.

However, the initial setup, ongoing support, and customization, as well as the tech stack and operational framework, differ greatly.

See the table below for a summary of a white label vs turnkey casino:

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Advantages and disadvantages of white label solutions

A white label casino offers significant benefits over building a casino from scratch. It’s faster, cheaper, and the operator can leave the technical side of things to the white label provider.

It also offers several benefits over a turnkey solution. To start your online casino, you only need to choose a package and focus on branding and marketing, with game API integration and a purpose-built platform doing the rest of the work.

You could be hosting slots like Lucky Crown Plus and Don Catleone Win Spins and accepting players within a few months.

It’s a simpler way to enter the iGaming market, but it’s not without its disadvantages:

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Is a white label casino right for you?

A white label casino is a lower-risk way to launch an iGaming business and tap into a lucrative sector worth an estimated $120 billion. 

Operators can bypass licensing requirements and hefty technological demands and launch within a few months. It’s often the method of choice for small-budget casinos, as well as those testing the market in preparation for a bigger and more considered launch.

Affiliates often use white label solutions to branch out into the casino space, after which they can use their existing platforms to promote the casino.

Customization and flexibility are less of a concern for these operators. It’s all about speed, cost, and getting a presence within the market. 

Advantages and disadvantages of a turnkey casino

A turnkey casino has a higher setup cost than a white label solution and, in most cases, the licensing responsibility falls on the casino and not the provider. However, it’s not as expensive or laborious as building a casino from scratch, and the operator retains full control of the design, layout, payment structures, and everything else.

It’s more customizable and flexible, and occupies a middle ground between building from scratch and opting for a white label service.

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Is a turnkey casino right for you?

Operators looking more to the long-term typically opt for turnkey solutions. It’s a fully customizable platform they can use to realize their design goals and get their message across. It’s also better suited for casinos with an eye on the future, as it’s easier to scale from a turnkey site.

The costs are higher, and the setup times are longer, but for casinos planning long-term strategies, they are sacrifices that are worth making.

What’s more, as the industry grows and more operators look for their share of the spoils, it’s important to be distinctive. Casinos need to set themselves apart from the crowd. That’s much easier to do with a turnkey solution that grants operators complete control.

Gambling license and compliance considerations

There’s no such thing as a universal gambling license. Some popular licenses, including those provided by the authorities of Curaçao and Malta, grant operators access to multiple jurisdictions. But there are limitations.

Those licenses don’t apply in the United Kingdom and Sweden, for example. Operators must obtain specific licenses from each of these authorities, and they all have their own requirements, waiting times, and fees.

White label providers take some of the hassle away from the regulatory and compliance process. Provider-owned licenses give operators easy access to regulated markets, and the white label operator also assumes most regulatory liabilities.

Many turnkey casinos use operator-owned licenses, which means the casino needs to obtain a license from each jurisdiction, while maintaining a list of all countries restricted by those licenses and preventing players in those regions from joining. They also need to consider GDPR regulations and meet AML/KYC requirements using various tools and integrations.

The economics of using white label vs turnkey casino softwar</H2>

As you’d expect from such a lucrative, popular, and heavily regulated industry, the economics of online casinos are incredibly complicated. 

Both white label and turnkey providers charge various fees for their services, and if the casino can’t follow through with a successful marketing campaign, what began as a promising venture could turn into a costly expense:

• Setup costs: The initial setup fees for white label and turnkey casinos vary from around $10,000 to $50,000. White label solutions are cheaper, but they often make up for this with other charges. 
• Revenue share: White label services take an average of 15% of the casino’s revenue, dropping to 5% for turnkey casinos. Some turnkey providers don’t take a revenue share.
• Operational costs: Ongoing charges can run from $5,000 to $30,000 a month for white label casinos, depending on the vendor and services. Turnkey casinos skip these service fees, but need to think about licensing fees, staff costs, and other expenses.
• Other costs: White label casinos also need to consider rolling reserves, while turnkey solutions need to think about infrastructure costs.

Taking the averages from the above, we can create an approximate cost comparison of white label vs turnkey casino solutions:

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In both cases, long-term profitability depends on successful marketing. Based on the above averages, a white label casino operator pays $210,000 in setup/operational costs in the first year, and once you factor in the rolling reserve (an amount held by the casino to protect against future chargebacks or fraud), as well as hidden fees, that could easily climb above $300,000.

If the casino generates $1 million, it will also lose $150,000 due to the revenue share. After marketing costs, that doesn’t leave the casino with much wiggle room.

For turnkey casinos, that extra 10% revenue could make a massive difference. What’s more, while there are staff and tech costs to consider, a small-scale operation can keep them under the amount typically charged by a white label service.

Both options require extensive economic planning and careful strategizing. There are no certainties in the online gambling industry, and it’s best to be prepared.

White label vs turnkey casino solutions: Which one should you choose?

There are clear merits and disadvantages to both turnkey and white label solutions. In choosing a white label vs turnkey casino, operators should look for the option that aligns with their business goals, fits their budgeting needs, and is adequately flexible and scalable. They also need to consider the variety of live dealer games and slot machine games, focusing on those partnering with top developers, such as 1spin4win, a trusted slot game provider.

With either option, it’s important to conduct extensive market research to highlight iGaming trends, discover what players want, and build a brand that is distinctive and market-ready.

FAQs

How do white label and turnkey casino solutions differ?

A white label solution offers ready-made infrastructure and licensing solutions. Turnkey casinos support the operator with more flexibility, but many require them to obtain licenses.

Which of these options launches faster?

As turnkey casinos need to think about licenses, payment methods, and how to embed additional online casino games, they take longer to launch than white label casinos.

Which is best to test the market?

The lower initial costs and simpler requirements mean white label casinos are best for testing market conditions.

Which option is best for customizing?

White label services offer minimal customization, but turnkey solutions give the operator complete control, making it the better option.

Will I still own the casino if I choose a white label service?

You own the content, player data, and brand, but at no point do you own the license. You’re also required to meet specific obligations regarding revenue shares and ongoing costs.

Can I add specific games and developers to turnkey casinos?

Yes. You can choose the integrations that you want. 

Can I operate in all countries with a white label casino?

No. You are limited to the countries covered by the provider’s license.