What are White Labels?

You may or may not have heard the term ‘white label’ before. A white label product or service is one that is created by a company to sell on to another company that brands it as their own. This works because the company selling the product has the ability to create but not the influence to sell it to a large amount of people, or maybe are just not willing to take on the extra risk that is involved with that. They sell their product to another company, and that company brands it as their own. There many different products and services available, but our focus is on white label betting sites.

So, what is white label betting? You may have gone through different betting sites and noticed that quite a few of them have the same games and slots. The reason for this is that those particular slots have been created by white label betting companies. It would be almost possible for a betting site to start up and create the large quantity of games you would expect from a betting site. This is the reason why, instead, they opt to pay for the use of the software created by any number of different sources. White label providers are used extensively by many of the smaller sites, but more distinguished ones can also use them in a more limited way.

Why is providing white label services so lucrative? The answer to this question lies in the large amount of money that goes through online betting sites. White label sites offer their services to many different sites, which together have a large amount of traffic and therefore money. New betting sites often have not choice but to use a white label provider, meaning that providers are often able to charge very high prices. This means that white label providers can earn massive amounts of money off of selling their services since they can charge both a flat fee for their services as well as taking a percentage of the revenue generated.  For example, BetConstruct receives an estimated $387.5 million, FSB Technology and OpenBet receive an estimated $13.8 million and $110 million per annum respectively. The fact that so many sites fail can also benefit white label providers. As different sites come and go, most of them use some sort of white label service at one point or another, if not for the duration of the time they are up.

What are the benefits of using white label betting providers? One of the main benefits of using a white label provider is that it can make a site much quicker to set up. You can avoid the expensive, and often time-consuming task of creating games and odds. It also massively speeds up the licensing process, as instead of the site needing its own license, it can be licensed under the provider. It also allows you to outsource customer support and promotions.

There are, however, a few disadvantages to using white label providers. The website you receive, especially from some of the lower-end providers may be quite generic and therefore your site may run the risk of being almost undistinguishable from other sites and may be harder to try and build a brand from. Another disadvantage is the high revenue percentage that some providers charge. If the profits are not very high then these charges may make it difficult for the site to survive.

White Label Brands

BetConstruct is an award-winning provider of services and technology for the online gaming industry that has been running for over 15 years. They provide an extensive selection of services from sportsbook and casino to data solutions for the companies they work with. They hold many gambling licences and certificates including one from the UK Gambling Commission.

BetConstruct is a very important part of SoftConstruct, which is a global technology company the is an umbrella company for BetConstruct and a few other services.

FSB Technology is a sportsbook oriented white label betting provider. It was founded in 2007 by veterans of the industry. It was created with the vision that a demand for live betting and smartphone use in betting, along with the changes that occurred in line with the changing rules and regulations, would change how people were involved with betting.

FSB Technology specialises in turning live data into applications for sports betting and aim to ‘maximise the revenue of their partners’.

SBTech, not to be confused with FSB Technology, despite coincidentally also being set up in 2007 provides sports betting and gaming services to its partners. It is a relatively high-end service and therefore the different sites using it can be more unique.

SBTech is most well known for its award-winning sportsbook and for the merger deal underway with DraftKings.

OpenBet is involved in both sportsbook and gaming software. It was set up in 1996 as Orbis Technology before being renamed OpenBet in 2010. It is known for providing services for bookmakers as well as national lotteries.

The platform created by OpenBet is available to players across multiple countries and therefore has been built to facilitate betting in different languages and currencies and across many different platforms.

Services Offered

There are different levels of services that white label betting companies can offer. These range from providing a ready-to-use website with its own gambling license, all way down to providing a single specific service for a pre-existing site.

Many new start-ups in the online gambling industry will opt to have their whole site created by a white label provider. For example, what if a group of investors wanted to own a sports betting site, but didn’t have to ability to create it themselves? A great option for them would to be to go through a white label provider such as FSB Technology or BetConstruct. If they wanted to have an online casino that could also be done through a provider such as OpenBet or BetConstruct. While it is more expensive than the other services provided, have the website almost fully created by a white label provider negates many difficulties, such as reducing required staffing. The site can also be licensed under the white label provider and promotions and customer service for the site can also be covered.

For those with a bit more experience with the running of an online betting site there is also the option to have a part of a site run by a white label provider. This works well for sites that already have some services they already provide but are looking to expand into new markets. For example, BetConstruct or FSB technology can be used to run a sportsbook service on smaller sites that would not be able to themselves.

A third option for sites using white label providers is to have very specific, small services provided. This is an option that is used often by the larger, more established sites. This is often because it is not financially viable for the larger sites to do themselves. Reasons for this include lack of experience in a specific market, or it being too niche for sites to do it themselves. An example of a company that does this well is OpenBet who provide many specific services such as verification, device integration, virtual sports and sports feeds.

Using a white label

Can anyone start a betting site with a white label provider? Technically yes, anyone with enough funds to create and run a site would be able to, however there is a catch. White label providers generally don’t provide you with your own unique site. It is simply not cost-effective enough for them to offer that service, it is much better for them to sell a few different websites to many different customers. This means that the owners of the site will have to create the brand image and market themselves. Online betting is a very competitive market, as you will be competing with many of the big-name brands for a share of the market. With the fact that 90% of all internet businesses fail within the first 120 days on top of that, it is best to have a lot of experience in the industry before you think about starting your own site.

You can see how white label provided services are a big benefit to different sites, but you may not know that they can also beneficial to the customers. White label providers can often provide better experiences and customer service than many of the small betting sites would be able to, which means that customers are able to have a more enjoyable experience, as well as peace of mind. If you use any online betting sites there is a high chance that white label providers do are involved with most of them in some way. However, due to the nature of many of the sites using these providers, if you are looking to stick to a single site in the long-term, it may be a better idea for you to use one of the more established sites.

Carl Hughes - Editor

Carl Hughes is a leading expert on sports and casino betting. Carl began his career with a BSc in Sport, Exercise and Health Sciences from the University of Birmingham before working within the industry for some of the bigger names (GVC and Bet365) and has been praised as being "a leading sports betting commentator".