Yoni Sidi, CEO at Wiztech, says white labels offer plenty of upsides, but there are a few drawbacks to consider for operators that want to truly stand out in the markets they target
I’ve been in the industry for more than 20 years now, and over that time, I’ve worked from both sides of the fence. In fact, it was my experience on the operator side, and in particular running white label brands, that led me to launch Wiztech.
For me, white labels have always been about striking a balance between the pros and cons that such a route to market provides. Upsides include speed to market and cost effectiveness, but drawbacks include a lack of differentiation and restrictions around product development.
If you’re looking to hit the market quickly and then focus mostly on marketing your online casino/sportsbook brand to players in your chosen jurisdiction, then a traditional white label solution could be right for you.
But if you’re looking to really stand out in your chosen market/markets and have control over more than just the branding and colour scheme, then you might need to consider a more flexible and agile platform solution.
Unfortunately, this realisation usually occurs once the brand is live and some of the less obvious pitfalls of running a white label casino/sportsbooks materialise. Let’s take a closer look at what these tend to be.
The drawbacks of a standard while label solution:
The most obvious drawback is that white label platforms usually offer a template for the operator to wrap its branding and colours around, but this means your general look and feel, and wider user journey/UX, are the same as the other brands using the same platform.
Not only that, but as you operate the site, you will become aware of certain friction points that you’ll want to address, but given the rigid nature of white label platforms, it’s usually incredibly difficult to smooth out even the smallest of bumps in the road.
And that’s before you get to developing unique features and functionalities. Requests are logged with the development team, which is usually working through a backlog of tickets from the other operators running on the same technology stack.
Of course, every time there is a regulatory change that requires an update to the technology, this takes priority over everything else, so your request falls even further down the waiting list.
The alternatives:
The most obvious alternative to using a white label solution is to develop a proprietary technology stack, but this approach is fraught with just as many – if not more – pitfalls.
Not only that, but it’s risky, expensive, and only a few operators have actually been able to pull it off. And even in those instances, ongoing maintenance, tech debt, staffing and compliance cause major headaches.
The good news is there is a middle ground, and it can be found in smaller platform providers whose technologies provide the agility, flexibility and adaptability required for operators to launch highly tailored online casinos and sportsbooks and then continue to develop the experience they offer.
The technology required for differentiation:
At Wiztech, we champion modular tech and the likes of AI and automation. By embracing these, we have been able to build powerful yet highly customisable casino and sportsbook solutions that are also fully compliant in tightly regulated markets.
In our experience, being able to quickly respond to regulatory changes provides a competitive advantage to our customers. In Mexico, for example, our client Winpot has been able to deliver a unique player experience while ensuring compliance at all times.
And this is against a backdrop where regulatory changes come often and with very little notice. Our technology can adapt quickly while Winpot continues to capitalise on the growing demand for entertaining online casino products and experiences.
The right technology combined with the right approach:
But choosing the right technology is just one piece of the puzzle. Operators also need to identify a partner that takes the right approach to understanding their needs and how they want to differentiate from the other brands in the market.
At Wiztech, this sees us undertake a comprehensive onboarding process where we spend a lot of time understanding the client’s “why” before we map out the “what” and the “how”.
This has proved to be incredibly effective and ensures that our clients can get the most out of the flexibility of our platform and the high levels of customisation and personalisation it provides. It also ensures we allocate resources to the right areas.
For example, the client might want a super sleek signup and deposit flow using localised banking methods such as instant banking. By taking the time to understand their needs at the outset, we can build this functionality ready for go-live.
Another operator might want to use a specific CRM provider, so again, by being thorough in our onboarding stage, we know this from the get-go and can integrate its solution without delay and have it tested and ready for launch.
For a lot of operators, a white label solution is the absolute best route to market; they just need to consider the long-term capabilities and potential of the platform and that it can support their ambitions while ensuring full compliance at all times.
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