The benefits of operating as a White Label Partner in the Gambling Industry

Paola Kryemadhi & Arianne King

The gambling industry has undergone significant change in recent years, driven largely by technological advancements, evolving consumer preferences and regulatory changes. A notable development within this sector is the rise of white labels, which have become a vital component of the industry with around 750 active ‘white label’ arrangements according to last year’s Whitepaper. In such a fast-paced industry, white labels are becoming a more beneficial option for operators seeking entry into the market.

 

Cost Efficiency

Developing a gambling platform from scratch demands substantial investment in technology, software development, and infrastructure. White label arrangements allow gambling companies in the UK to leverage the infrastructure and technology of established providers to launch their own branded gambling platforms. This approach significantly reduces the financial burden on new entrants, as they can avoid substantial investments in technology, software development, and infrastructure. Instead, they can customise a ready-made platform with their branding and specific requirements. This allows them to allocate resources to marketing and customer acquisition rather than costly development.

Furthermore, white-label providers in the UK gambling market handle maintenance, updates, and technical support, which minimises ongoing operational costs for gambling companies. By outsourcing these tasks, operators can ensure that their platforms remain competitive and compliant, without the need for extensive in-house resources. However, new entrants should be aware that white label providers often charge higher revenue-sharing fees in order to cover their own licensing, support, and maintenance costs.

 

Speed to Market

In addition to cost-effectiveness, white-label arrangements also offer the advantage of speed to market. Operators can launch their platforms swiftly, often within weeks, compared to the months or even years required for in-house development. This rapid deployment is made possible by the pre-existing infrastructure and regulatory approvals held by the white-label provider. Operators can capitalise on market opportunities and seasonal trends without delay, giving them a distinct competitive edge, for example, many existing overseas operators utilise white label services to quickly establish a presence in the UK market.

 

Regulatory Compliance

White label providers offer valuable legal and compliance expertise, ensuring that platforms comply with local regulations. This reduces the risk of legal complications and financial penalties for operators. Compliance measures such as responsible gambling, anti-money laundering protocols, and data protection standards are crucial for maintaining a trustworthy and reputable brand in the industry. However, it is essential to choose a reputable white-label provider with a competent compliance and legal team, as inadequate anti-money laundering controls have led to scrutiny and suspension by the UKGC in some cases. With amendments to the Gambling Act 2005 such as the Gambling (Licensing and Advertising) Act 2014 and the release of the UKGC’s Whitepaper last year, regulatory compliance should be a critical factor for all gambling operators in the UK as well as those seeking to expand into the UK market.

 

Technological Innovation

White-label partners also offer access to innovative technology and features that enhance the user experience. This eliminates the need for operators to invest heavily in research and development. Additionally, white-label platforms are scalable, allowing operators to expand their offerings and enter new markets as their business grows. Technological innovation is guided by regulatory requirements to ensure fair play and responsible gambling, as outlined by the UKGC's Remote Gambling and Software Technical Standards.

 

Conclusion

White label arrangements provide a cost-effective, efficient, and compliant pathway for gambling operators to enter the UK market,  making them an attractive option for both new entrants and established brands seeking to diversify their offerings. As the industry continues to evolve, white label arrangements are likely to play an increasingly pivotal role in driving growth and innovation, ensuring gambling operators can meet the demands of a dynamic and competitive UK market. The integration of robust regulatory compliance mechanisms and cutting-edge technology further solidifies the position of white label solutions as a vital component of the modern UK gambling industry.

 

For advice on setting up a gambling platform, please contact Arianne Elise King at aking@costiganking.com