A flurry of excitement erupted on the gambling forums at the end of the summer when dozens of new Microgaming casinos appeared. It is also one of the most costly (alongside Cryptologic) and is used by just 80 casinos. The latest version is usually only available once a quarter. This is why it is not surprising that gamblers are so surprised.
Casino Share, a relatively new casino that uses Microgaming software, has made it clear that these all are white-label casinos. What is a white label, you ask? White label can be described as a small, independent casino that can be operated under its name.
It works like this: software producer, RTG, or Microgaming company, which produces software for casinos and sells it to clients. The software of a supplier is usually similar. The game set is nearly identical, and the monetary central processing unit is standard. The question of competition arises not only about casinos from different producers (where there are differences and grounds for competition) but also about the casinos owned by the same producer, where there are few ways to distinguish. There are many ways to attract clients: there are online and offline advertising, significant actions, and almost all use partnership programs.
Some casinos sign contracts with software suppliers and obtain permits to multiply the software further. These casinos offer white-label programs that allow anyone to open their casino. The basic scheme is as follows: A partner pays a small amount (up to several thousand) and receives a standard site and software for clients’ downloading. It can be branded with the partner’s name and logo, not that of a parent casino. Support services and financial transactions are done through the parent casino cashier. Customer service, customization and design, customer host, fraud control and web design and maintenance, as well as internal marketing. White-label software providers offer fully managed, cost-effective gambling websites easily operated by affiliates or owners. Online casinos, sportsbooks, poker, and bingo operators can enjoy all the benefits of marketing online casinos or bingo sites. After the initial installment, a partner will give the parent casino about half the profits.
This raises the question: Is this scheme profitable and convenient for whom? Software suppliers can make much money by selling the right to create white-label and casino customization software. This increases the popularity of the software, although there is a risk of issues. Also, royalty is increased. The software supplier also gets its share of casino profits. The parent casino that organizes white label programs also reaps the benefits. The right to create white-label casinos is expensive. However, a significant portion of it is returned from the initial payment of the partner. Once the casino has opened, the casino begins to make profits without marketing expenses. Support service and processing costs remain, but they are significantly lower than half of the profit.