At the end of this summer a stir of surprise spread along the gambling forums – several dozens of new casinos with Microgaming software suddenly appeared. This software is one of the most expensive (along with Cryptologic), it is used by only about 80 casinos, and the new one usually appears not more often than once in a quarter. That is why gamblers’ surprise is quite natural…
It has turned out that all this is white label casinos by Casino Share (relatively new casino with Microgaming software). So what is white label? White label is a kind of a small branch of an existing casino, which can be developed under its own name.
The system is as follows: software producer, RTG, Microgaming, or Casino Village on Net type company, producing software for casino and selling it to the clients, is on top. A supplier’s software is generally similar, the game set is almost the same, the financial central processing unit is often common. Here the question about competition appears concerning not only casinos from the different producers (here the differences and, therefore, grounds for competition exist), but also the same producer’s casinos, where there are not so many ways to be marked out. Methods of attracting the clients are various: some advertise themselves online and offline, some organize great actions, almost all use partnership programs.
Some of the casinos make contracts with a software supplier and get a permit for further multiplication of the software. Such casinos open white label programs, where any person interested may get “his own” casino. The scheme is usually as follows – a partner pays a relatively small amount (several thousand, maximum several tens of thousand dollars) and for this money gets a standard site, software for clients’ downloads, where the name and logo chosen by a partner, not those of a parent casino, stand. Financial transactions are made through the parent casino cashier, support services are provided the same way. Customization and design, customer service, player hosts, fraud control, web design and maintenance as well as internal marketing. White label casino software producers provide cheaper, fully serviced and managed gambling websites that leave the owner or affiliate free to concentrate on marketing. Online bingo, sportsbook, poker room or casino operators enjoy all the benefits of marketing online bingo or casino sites without having to manage technical, business, licensing and operational infrastructure.The initial instalment goes for casino customization, after that a partner gives about 50% of the profit to the parent casino.
A question occurs: for whom is this scheme convenient and profitable? It is rather profitable for a software supplier, as it sells the right to create white label and casino customization services, increasing the popularity of the software (although the risk of negative responses is increased in case of problems), royalty is increased (software supplier gets its interest in casino profits). A parent casino organizing white label program also benefits. Although the right of creating white label casino costs money, its considerable part is returned out of the partner’s initial payment, and then the casino opened begins to get profits without marketing expenses (support service and processing expenses remain, but they are much lower than 50% of the profit).