Mistakes to Avoid
Purchasing a white label casino is easy. Many casino platform providers are grateful when you jump without a proper evaluation into a deal. Since many of these providers make a living solely out of charging the setup-fees, they won't look if your casino concept has a chance to succeed or if your background (skills, market experience) are sufficient. The list below is not exhaustive but outlines the typical mistakes of newcomers in the casino business:
Poor casino brand
Most successfull casinos have a strong brand name. Before you start to do anything else, you should ensure that you have a great casino name, a correlating domain name (only .com or .casino) and a clear casino concept which envisions how the casino shall look alike and to which markets and market segments you want to target. You also need to have a solid concept from where the traffic is coming (SEO won't do it). Rushing into a casino deal without ensuring to have completed this homework is a main reason why so many white label casinos are failing in the market.
Lack of financing
The biggest mistake newcomers in the gambling industry can make is to miscalculate the financial requirements. Making an online casino profitable requires a solid investment. The competition in the market is huge and only with a top product and professional player services you will have a slight chance to attract and retain players. There are thousands of online casinos in the market and nobody wants to spend money in a sloppy developed, cloned casino with irrelevant games and poor services. If you think different, forget it. You are dead-wrong.
A professionally developed and well working online casino costs money. There is no short-cut. Period. For starting a professional online casino you must have a liquidity of approx. $50,000. Everybody who tries to lure you into a deal with promising you a licensed and converting online casino with less financial requirements should be treated with caution. Next to the setup fee (payable to the casino platform provider) you also need liquidity for paying players and affiliates during the first weeks of operations. Many casinos are going bankrupt during the first weeks when a player wins big. Factually there are only two scenarios:
You have good games where the game outcome is purely based on certified RNGs:
In this case you have the risk that a player can win a huge amount of money.
You have crap games in your casino where the outcome is manipulated:
In this case you will avoid the risk of big losses but players will stay away from your casino because playerrs aren't stupid and they don't want to get cheated.
White label casinos where the casino provider is carrying the financial risk use mostly manipulated games (with a bad reputation). Your chances to make money with such games is close to zero because no experienced player will deposit money in such a crap casino. The only chance to make a casino successful is to offer good (certified) games and with these games you are exposed to the risk of huge payouts. If you still have the idea that there is a way to manipulate the payout rate of games then you are living in "la la land" and you seem to have zero clue what is required to make a casino business successful.
The biggest mistake is to look what budget you have and then to search around which casino product you can get for this amount of investment. The ONLY way to get a converting casino is to calculate first what is factually required to launch a competitive casino and then - in a second step - to check if that is in your financial reach. If not, please work for a while with conventional casino affiliation until you have saved the amount which is required to have a professional start. Not following this advise bears the risk that all your investment will be lost. We have seen this hundred times.
- You have good games where the game outcome is purely based on certified RNGs:
Lack of market experience
There is no substitute for a detailed knowledge of the gaming industry. We get approached every day by many persons who claim they know SEO and website development and think that this will qualify them to launch a successful casino. If you are in the fraction that you think you can make an online casino successful based on your SEO work than your investment is already lost. There is NO chance for a newcomer casino to get via organic traffic a sufficient amount of traffic to break even in a foreseeable amount of time. Experienced casino marketeers have a clear idea from where they will get players - and SEO is not on that list.
Player acquisition in a casino is only one side of the medal. Player retention and other services are the key elements to make a casino striving. Creating a marketing strategy which visitors/players accept requires market experience. The best strategy is to partner up with an entity or person who is experienced in the field of casino marketing. Otherwise your casino will die a silent death in the Internet.
Lack of persistence
Successful online casinos earn a lot of money. But the way from a new white label casino to operating an established online casino is a long and winding road. There are no short-cuts. It requires months and years of hard work and a high level of peristence and frustration tolerance to succeed. There is also a lot of try and error involved and the willingness to optimize details. If you are looking for quick money, running an online casino is clearly the wrong choice.
Lack of skill
Being a sucessfull Casino operators requires a broad range of skills. Next to technical, financial and marketing skills the ability to communicate clearly with providers, partners, affiliates and players is decisive. On top of that a lot of creativity is required. Due to the crowded nature of the gaming industry you need to invent always new things to keep your casino attractive for players and affiliates. Getting realistic with what you can deliver might protect you from experiencing severe disappointments.
Lack of due diligence
The gambling industry attracts many hasty people who are looking for quick money. To find the right casino provider, to create a great casino brand, to develop a working marketing strategy and to operate a casino successfully - all that requires a lot of due diligence and working on constant improvements. The bar is quite high and that is the main reason why 95% of new white label casinos are rapidly going down the drain.
Use our free consultation services to evaluate your casino concept and to select the best suited casino platform provider for your specific project requirements.