It is essential for the stakeholders who seek to find and occupy their specific portion of the online casino market to study the business models. What makes one online casino different, and how does a new kind stake its claim in the competitive industry?
This paper presents an extensive analysis of the Internet gambling environment. It discusses several types of its business and development models, focusing on such vital areas as the adherence to existing legislative rules, the usage and development of technologies, and the presentation of an appealing and comfortable interface for visitors.
Exploring Online Casino Operations
The concept of online casino is not monolithic and includes a range of business models, most commonly distinguished as white label,
| Model | Entry Cost | License Ownership | Revenue Sharing | Cash-flow management |
|---|---|---|---|---|
| White-label | Low | Platform’s | Platform gets the vast majority | Operators have no access to deposits and withdrawals |
| Turnkey | Fair | Operator’s | The percentage is favourable to both parties | Operators have some partial access |
| Proprietary | High | Operators | Operator gets the vast majority | Operators have full access to deposits and withdrawals |
White-Label: The Entry-Level Model
White-label casinos are attractive for their quick market entry and lower initial costs. However, they have several drawbacks. In a white-label structure, the gambling license belongs to the platform; hence, the operator has no power or control over operations, customers’ complaints, and, more significantly, payouts. This control deficit can hinder the capacity to synchronize the platform to the operator’s vision.
White-label models offer operators little to no flexibility. Options concerning software, promotion and bonuses are available only from the provider’s list of options. For example, many of the New Zealand online casino bonuses found at Casino.org are unlikely to be provided by the operators themselves, this doesn’t make much difference to the player but the operator is unlikely to be able to tweak the offers to benefit them. This can be disadvantageous and can hinder more innovation and customizations.
In this model, the operators receive substantial percentages of the revenues but pass them over to the platform providers. Conclusively, white-label casinos may not be suitable for individuals seeking more operational freedom.
Turnkey: The Middle Ground
Compared with the other distribution models, the turnkey model is relatively more favorable, with some flexibility to allow for customization but with adequate support. Here’s how it stands out:
- Semi-Custom Platform: Gambling operators get the platform they need for the online casino business and can make it unique.
- Ownership of Gambling License: Operators are given the gambling license, thus enhancing their credibility.
- Direct Cash Flow Management: Operators can access funds and control deposits and…