“Online sportsbook and casino operators must choose the right technology stack from the get-go or risk hitting a glass ceiling”, explains John Chyriwsky, Head of Marketing at Fincore.
White label platforms provide a springboard for operators to quickly launch their online sportsbook and casino brands in regulated jurisdictions across the world. The time to market is rapid, allowing brands to go from signing on the dotted line to welcoming their first players in a matter of weeks.
For operators, white labels provide a one-stop-shop solution, giving them access to every module they need to run a successful book or casino. This includes content, bonusing and rewards, payments, security, responsible gambling, compliance, and customer support.
Many brands have found success using a white label solution. Indeed, the alternative of developing a proprietary platform from the ground up is simply not an option for most due to the staggering cost and high risk that comes with doing so.
However, standard white label solutions do have drawbacks, especially if the operator can build momentum and achieve early success. These drawbacks can harm the player experience to the extent that customers leave the brand for a rival, making the operator a victim of its own success.
These are just some of the issues operators can encounter…
Falling to the back of a long development queue
White label providers can work with tens – sometimes even hundreds – of operator partners which makes it tough for individual sportsbooks and casinos to request updates and changes to the platform. There is often a queue and a long one at that.
This means the operator can’t fix issues with the platform or player journey, keep pace with changing preferences and trends, or roll out updates promptly. And in such a competitive industry where consumers have a choice, this delay can be a catalyst for a sharp rise in player departures.
No option to develop unique features
Not only is it tough for operators to implement fixes and updates, but it’s also very difficult to bring new and innovative features to the sportsbook or casino. This usually requires a deeper partnership with the platform provider as essentially, they are undertaking bespoke development work.
This can be done but at a cost. Of course, the white label provider also needs to be mindful of its other operator partners and ensure it has enough development capacity to keep clearing through the standard development tickets coming in before working on any bespoke projects.
In a market where operators need to offer players something different to entice them from rival brands while also delivering more value to existing players, this can be a pretty major issue.
A lack of USPs due to shared functionality
Indeed, it’s hard for operators to have compelling USPs because they essentially offer the same proposition as other brands using the white label platform. Sure, they can run a different welcome bonus and perhaps personalise the cashier, but the core player experience remains the same.
This is where brands powered by proprietary platforms can pull ahead of the competition, with the likes of bet365 in particular being renowned for developing and deploying pioneering products and features that allow it to stand out from its competitors.
Failing to meet player expectations
If operators can’t set the standard for others to follow, or at least keep pace with those bringing game-changing features and experiences to market, they will fail to meet player expectations. Ultimately, this will hamper their ability to acquire players and see those engaged with their brand leave.
Limited market access
White labels can also be limiting in terms of an operator’s international expansion plans as they can only go into the markets where the technology provider is certified. This can hold back a company if it identifies a particular market as offering huge potential for its proposition.
The operator then has to decide to not enter that market or identify another platform provider that is certified and licensed in that jurisdiction.
The problem for most white label operators is that by the time they realise the above, it’s already too late. They are up and running on the white label platform, have built a large and loyal player base, and are now looking to elevate the player experience as they go from strengthen to strengthen.
It’s only then that they come to fully understand the limits of white label solutions, and the negative impact these limits (and delays to development, innovation and meeting player expectations) can have on the business.
Furthermore, despite claims to the contrary, technology suppliers are unlikely to make it easy to migrate customers to a different solution. To truly own their customer data, companies need to invest in their own platform.
However, proprietary development is so risky and expensive that many feel like there is no alternative. But that’s not the case. There are solutions out there – such as Fincore’s Tri Platform – that offer the flexibility of a proprietary platform but with the low cost and limited risk of a white label.
This solution is the perfect middle ground and means that instead of falling victim to their own success, operators can use it to continue to grow and achieve even greater things because there are no glass ceilings getting in their way.
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