In recent years, the igaming industry is taking off giving the companies new opportunities to grow. Hence the market becomes more and more competitive and the expectations of the players respectively get higher. If you consider running your own business there are two key starting points - an online gambling licence and a solution type for your operations.
The number of gambling regulators is wide, though the jurisdictions of Malta and Curaçao provide the most popular options. However, the choice of operation types is much narrower.
When launching your own igaming brand, it is necessary to understand the process, as you should figure out which provider is reliable and which of the products are “must-haves” for you. Solutions make the processes go faster, as the providers offer you ready-to-use options.
Right now there are 3 types of services the platform providers offer - White Label, Turnkey and API integration. It's important to know that White Label and Turnkey are Web Solutions, and API is considered to be Data integration.
So keep on reading as we are going to not only have a detailed look at each of these solutions but also highlight their pros and cons.
White Label Solution
White Label is considered to be a web solution allowing you to start the project using the ready-to-use options and get a range of customizable products. In the igaming industry the products provided under this solution have the potential of being rebranded and customized to the taste of a client. Additionally, being a web solution, the services provided under the White Label are the quickest if you want to set up an online casino from scratch.
In this case, both the supplier and operator get what they want. The platform providers focus on creating and developing the product, while their customer is investing time in branding, marketing and promotions. Though this is a ready-made solution, it can still be customized according to your needs.
Pros and cons of the White Label solution
White Label solution has many advantages, among them are:
One of the main advantages of this solution is that the licences are held by the platform providers, hence you don’t have anything to do with the juridical part.
Payment processing solutions
You get access to trusted payment providers who support both local and international payment methods.
Risk Management and anti-fraud modules
Within this solution, all security systems come built-in.
24/7 B2B and B2C support
You get multi-lingual B2B and B2C support teams for this solution.
In this case, based on the research and the popularity of White Label, the main disadvantage as so can be considered the higher cost compared to other solution types. However, taking the quality and quantity of features into consideration, the price is quite fair.
To conclude, White Label solution is ideal for those who want to pay more attention to the marketing and branding side of the business, hence giving the full management of the technical side to their software provider, relying on them.
Turnkey solution is the second type of two web solutions. In contrast to a white-label product, the legal and financial matters of the services provided under Turnkey solution fall on the operator, while the supplier covers the technical and software part of your business only. In order to operate under the turnkey model, you already need to have your own licences and a wallet. The software provision on its own is considered to be more flexible and customizable. Again, you can choose the platform design, structure and customize your preferences.
Pros and cons of Turnkey solution
Turnkey solution also has its own advantages and disadvantages. Let’s start with the pros.
Fully manageable and powerful backoffice
Providers offer a market-leading range of products with fully manageable and powerful backoffices. This is also vital for business management.
Within this solution you also access KYC management tools, client categorization, limiting, etc.
24/7 B2B and B2C support
Multi-lingual B2B and B2C support teams are available for this solution too.
This solution type is considered to be among the most flexible ones, though it has its drawbacks too. In order to operate under this solution you need to secure an online gaming operation licence and set a wallet. Still, considering the products and services one may have, Turnkey solution ensures robust value for money.
So, if your business has already gone through the juridical and financial part and you need to be engaged in the management processes more, this solution will be exactly for you.
Pros and cons of the API integration
Let’s have a look at the API integration’s advantages and drawbacks. Here are the main advantages of this integration.
Ease of integration
API is a component that allows different platforms, applications and systems to connect and share information. For instance, certain software can be used inside one another or can be connected with different tools to streamline certain processes.
APIs simplify the implementation of new applications, business models and digital products. It allows effective complementation with third-party products or services whilst improving their development. For that reason, many developers and entrepreneurs are willing to pay for this solution.
APIs are essential for the creation and development of innovative business models. They can be developed faster. Thanks to automation and integration of processes, your business can save money, time and efforts.
The benefits of BetConstruct’s API integration
As a software provider, BetConstruct offers:
- Swarm API for connecting and getting sports and game data to your custom fronted.
- Partner API to integrate BetConstruct’s betting and gaming products into your platform.
- Open-source library on Github for both desktop and mobile front-end customization
- Odds Feed API for BetConstruct Odds Feed integration
Meanwhile, the main drawback of API integration from the business aspect of view is considered to be the fact that if you have few API-s integrated into your website from few different partners, you need to maintain and follow up both of them. That is both costly and time-consuming, hence not that beneficial for the business. Besides, API has minimal tools customization, which itself can be considered as a drawback too. Because the more customizable the product is, the easier it will be for you to make it suit your needs.
Ultimately, if you are starting a business from scratch, this solution may not be the best suite for your brand at an early stage, but it is one of the best for the already existing operation.
How to know which one is suitable for you?
We have already provided you with the pros and cons of each solution, now let’s see what else you need for your igaming operation and how to choose the best option.
First, you should determine your business goals by answering a few basic questions, such as:
- Do you need a fully manageable business?
- Are you looking for a quick, ready-to-use solution?
- Do you have your own gaming licences to operate under or do you need a provider who already owns some?
- What is your preference - sportsbook or casino service?
- Do you already have a target market?
Once you have an approximate picture after answering these questions, you can start looking for the provider who is going to help you with your solution. Mind that customisation and quick integration are the keys to success. As the more configurable the system is, the more suitable it will be for you. Besides, even if your main outlook is for a ready-to-use option, your provider should also meet deadlines and deliver a high-quality product as soon as possible.
In conclusion, we can state that the igaming industry is considered to be one of the most prosperous in recent years, and yet very risky, responsible and time-consuming. It takes a lot of time to do research, find loyal partners and a smart team, execute marketing and build a reputation. Today you have learned all the useful and initial information you need to know about business solutions, their advantages and disadvantages, key takeaways and points requiring the most attention when thinking of starting the business.
The road to success is challenging, but with a loyal and professional partner, it’s way easier for you to overcome the hardships.
Author: Nare Sujyan