Episode Transcript
[00:00:00] Foreign.
[00:00:04] Max is here and it's been a while since our last video. And the reason why this video is late because we were in Las Vegas for a gaming show. Gaming conference in the exhibition. Right. So now we are back to Europe. So now this video will go live today or tomorrow.
[00:00:21] So the show went fine. The show was great. And let's start with the topic on why I believe that you shouldn't choose white label and why you should choose turnkey like all the time when you want to start your business.
[00:00:34] So I have many requests on. Listen, we want to start the business but we want to save on marketing. We want to save on time and well, we would rather spend some money like on people and marketing and want to start like cheap. And now we want to get a sub license from you and the white label platform. Can we do that please?
[00:00:54] Well, the thing that, that you can actually get as the white label platform. So the white label business model that you choose does not also include the license.
[00:01:06] So platforms do not have that well power to issue you the sublicense. Because the only body that has such privilege is actually the gaming commission.
[00:01:20] Because you have to pass through kyc, you have to qualify for the license. Gambling commission has to, you know, look at you under different angles and decide whether or not you qualify for the license. So now imagine like platform has that power. Platform is like willing to get you as a, as a business partner. They will just give the license left and right. So that's not a good business practice. So you cannot get the sub license, but you definitely can get the white label platform. You can operate under the white label business model. Now how do we do that then?
[00:02:01] So the truth is that you will be operating under the license of this platform. So the platform owns the license. They did all the kyc, they spent time money to get the license. And now like multiple operators are operating under their license. So you own the domain and you do not own the license. And if something happens like to you, you decide not to pay to your clients, then the platform will lose the license. So the platform has to manage the risks, they have to remove all risk. Like just imagine like if you rent a car, right? So you know car rental, they check everything, they check your driver's license, they take your credit card, they take deposit, they charge you for the car, they provide you with insurance. And if something happens, well they know that they are secure, right? So you will have to pay some money or your insurance company will have to secure, will have to pay some money. The same with the platform. Platforms take measures against such possibilities.
[00:03:05] So what do they do? Well, the best way how to do that is to control your cash flow. So what it means, it means that you do not own anything. You do not own the platform, you do not own the license because platform will give it to you. You do not own any games. You don't have direct agreements with game providers, you don't have agreements with payment system providers nor banks.
[00:03:30] No one else like platform, white label platform owns this entire thing. And the only thing that you own is your domain. And I would say branding, but you can have any branding like under white label. There are no such like real examples that, you know, white label becomes like a huge brand. Well, huge brand. I mean you have to generalize 100 million in revenues in order to you all to to be recognizable, right? So why would you want to generate 100 million if you can have yourself a better deal with a turnkey or get your own platform? Well, there is no big sense in this.
[00:04:11] So if you do not own anything, how this entire process looks like. So when people go and people will start playing with you, the entire cash flow is owned by the platform. So the platform wants to make sure that your clients will get paid. Because if you don't like all operators will lose the market, will lose the business because the platform loses the license. Right. So they will pay out to all your partners, they will pay out to all your clients. And the only thing that you will get is actually the profit that you generated if you generate it. They also want to secure themselves. They do some rolling fee reserves to make sure that your bank is full. So just in case, if you have like a lot of revenue going through your accounts, you have to make payouts. They want to make sure that they have some rolling bank all the time in case you become unlucky in a moment, in a short time. Right. And the bigger you become, the bigger the loss can be. So they have to include this factor into the risk.
[00:05:13] Now let's think about the time. Is it time? Do you save time actually by getting yourself white label platform? So the truth is that there is no big difference between setting up a white label platform and a turnkey solution. Like why?
[00:05:30] Because if you do everything right. So the way we do the turnkey setup is that we apply for the incorporation of your own company.
[00:05:40] We start application of the license and at the same time we start agreements with platform providers. We set up APIs, we do banking accounts and billing agent companies and then connecting payment system providers. So by the time when you Have a license.
[00:06:00] This entire setup, someone is already working on it. So you do not have to wait for months before you get the license. You can start doing things right away. And the thing is that you now own the entire thing, with an exception of the platform, because you will have to run the platform anyway. So how about the money? Do we save some money? Well, yeah, you do at some point.
[00:06:26] But if you take a closer look on this one, and if you know something about the business, then you can actually lose more money than you save. So how is that possible?
[00:06:37] Well, the first thing is that you may think that white label platform will provide you with a license and you can work everywhere. Well, the truth is that no, you cannot, because there are multiple countries that do not qualify for the white label business model. So platform limits you on certain geographics. So you cannot work like in regulated markets. You cannot work in markets that this platform considers risky. So before you even apply, before you sign the agreement, you have to make sure that you get a list of all black blocked geographies and you have a list and understanding on what works in this specific geography. Another reason why you may lose money, and this is the big one, is because regulators, they do not like white label. Like, the only license that allows white label now is, is Curacao. And out of four licensors, just one or two actually allow white label. So imagine the situation like they do not like white label because of certain risks. There are many operators that do like, you know, dodgy thing and now they decide that, okay, we have to stop with white label because the time has come. So what is going to happen? Your investment that you just invested into the white label platform and the marketing and the team, you will just lose it. So you may end up not having white label platform, but you may say, okay, we will then transition to turnkey, right? So the transition is not that fast. I mean, it's either you go offline and you go hard transition, you will lose all your clients, the revenues. Will you transition slow? And the transition will take you some time because everyone is busy, you know, and everyone is going to be even busier if that happens to all, you know, operators at the same time. Is it good? Sure. It's not. Now the fact that you do not own anything, you do not own the platform, you don't know, you don't own any agreements with anyone. If you do something wrong, if platform like white label platform considers that you do something wrong, if they don't like something about you, guess what?
[00:08:51] It takes one switch and you Are blacked out. So it will take one switch. You don't have any flexibility.
[00:08:59] One push of the button and your business goes down. All the investment just disappears. With turnkey though, you have a flexibility. You can consider partners. You work with.
[00:09:12] You know, you have full control over your business. You can do it things free, faster. You are flexible because you have several teams working in several places. You either outsource those the work or you have your own team. Whatever you do, you are flexible. No one like can turn you down. No one can turn you off any of they do. You just change the supplier. So you have this flexibility on everything. Another thing is design. It's huge. If you want to look like Stake.com, if you want to look like Wallet and Alruba, whatever.
[00:09:45] Well, it's difficult with white label to actually change the design. So you get that template the way your business will look like and that's it. Why? Well, because there are certain rules, a lot of set standards from the license, words from gaming commission, the way this entire thing should look like. So if platform will provide you with the access to the front end, you may end up while designing whatever you want. And platform risks to lose the license. So they cannot allow you to do to get your own team to change something. So you get what you get. And if you want to change something, then you have to speak to the designers of the platform, right? So you have to pay whatever it takes. You know, find time. They may be get busy. So you may end up even being late on what you do. Even it will take you much more time than it will take to set up turnkey solution. And also you are limited on payment system providers, you are limited on game providers, you are limited on everything because you just use, you know what you have. You cannot connect anything because you are too small. Now no one will ever consider connecting anything because of you, right? So you have to prove yourself, you have to grow. So this is another cone of being white label. And if you know nothing about turnkey, then you can download the list like five things you have to do to start your own casino or sportsbook that will go step by step on things that you have to do from having nothing to having your own online casino in a very manageable time and a shortest time possible. This thing is great if you think that you can start like fast because you cannot or if you believe that it takes a year or two years to set up your online business. I mean this list will definitely solve this for you. Because in practice you can start your business within A couple of months if you are doing things right, if you follow the list. All right. Now who I consider to be qualified to connect white label. So you should have two things. A, you should have, well a capital that you are fine to risk with to test something. So if you have a traffic, you want to test traffic and you have 10k that you can use like you can, you can risk with 10k, like whatever, let's just, you know, below 10k and see if this thing sticks. And if it doesn't, let's just forget about that. So if you have a situation like that, then go ahead and get yourself a white label platform and you can download the list of all white label platforms and turnkey platforms below. And we have also, you know, distinguished top three platforms in our opinion that you should have if you're choosing white label. So go ahead, download that list as well.
[00:12:48] Now this, the most fun thing is in numbers.
[00:12:52] So what it takes to get yourself white label, how much it costs and when you lose money instead of winning money with turnkey. So let's imagine that white label you can get for 8k. Not far from truth. There are different offers on the market. Like white label can cost you $8,000, euros, whatever.
[00:13:13] And you may end up paying like 15% revenue share deal on white label, which is high.
[00:13:19] Now you can have another hand like turnkey solution. And that turnkey solution may cost you 30k for example and then a revenue share deal 6%. So it's much, much less than with a revenue share.
[00:13:35] So you have to generate approximately 250,000 in GGR in order to be break even.
[00:13:42] So after you generate 250,000 DGR, you actually start making money on your turnkey solution and you start losing money on your white label solution.
[00:13:55] So why would you want white label if that is just like 250,000 DGR? Do you plan to make 250,000 and that's it? I mean that's definitely not the case.
[00:14:06] If you are in this business long term, you shouldn't even consider that. And if capital is your only concern in this business, then don't even start because this business requires some capital. You cannot start this business having nothing in your pocket. This business requires certain investment into platforms, software providers, API banks, payment system providers, marketing. So if capital, your zoning concern, think twice, you may lose all your money. Don't even start like, listen, I've seen so many different stories like being successful with, you know, really limited budget. But I have never heard stories of being successful without the budget at all. That's just nonsense. Now let's check long term. For example, you generate 1 million GGR so you will now lose 70k that you will pay to white label platform. Instead of taking 70k, reinvesting in your business, paying for marketing, increasing your marketing budget, hiring new people and actually growing.
[00:15:08] So 1 million is just enough to show how big the difference is. You will end up overspending. 70k. You will just give someone 70k.
[00:15:17] You would rather buy yourself a car.
[00:15:20] Now that's it with this video. If you are looking to download a list of turnkey and white label platforms and you want to know the top three choice our choice for white label platforms, download it below. If you are looking for you know five steps that you have to take to start your own online casino or sportsbook, download the file below. It will be below this video. And if you are looking for your online gambling license, if you are looking for help with APIs, platforms, white label turnkeeping and system providers banks, there is a link below. You can get in touch with my team Some someone will get back to you shortly. They will definitely help you will qualify you whether or not you are good for the license, good candidate and if yes then that's just all right that was it. This was Max and see you in my next video. Thank you. Goodbye.
