Establishing a successful sportsbook business is not an easy task. Especially if you are starting from ground zero. And if that’s the case, then you need to acquire a sportsbook platform. The platform which comes with not only sportsbook software but a whole set of systems and tools, including a back office, payment system, bonus system, analytics, sportsbook risk management, and so on.
Doing this whole thing with a self-service solution is a waste of time and resources if you are not heavily armed with a nice hunk of change and unlimited time. So, the most suitable and effective options that you can use are white label sportsbook and turnkey sportsbook (Read about the different types of sportsbook software to check out other options, too).
Both options offer distinct advantages and cater to different needs, making it essential for aspiring sportsbook operators to understand their nuances. Drawing insights from industry experts, our article delves into the white label and turnkey sportsbook solutions, aiming to provide a clear, easy-to-understand comparison.
Just a quick reminder before delving into our topic. We recommend you check out the article about how to start a sportsbook business. It will give you all the necessary information you need, especially if you are a beginner still trying to learn the ropes of the iGaming business.
What is a White Label Sportsbook?
A white label sportsbook is essentially a plug-and-play solution. It allows you to launch your sportsbook under your own brand using a pre-built, ready-made platform. This option is particularly appealing for those looking to enter the market quickly and with minimal hassle.
White label sportsbook provider takes care of the technical aspects, including software development, licensing, and payment processing. This allows you to focus on marketing and customer acquisition and not spend additional funds on software development and licensing.
Advantages of White Label Sportsbook:
- Speed to Market: With the infrastructure already in place, launching the platform is much faster.
- Cost-Effectiveness: A white label sportsbook reduces the initial investment required to start a sports betting business.
- Simplicity: It also eliminates the complexity of dealing with multiple vendors and regulatory requirements.
For more information about the topic, you can check out our article – How to start sportsbook with white label solution in 2024. Now, let’s briefly discuss turnkey sportsbook software and then move on to the comparison of these two sportsbook solutions.
What is a Turnkey Sportsbook?
Turnkey sportsbook solutions offer a customizable approach. While they also provide the essential software and infrastructure needed to launch a sportsbook, they allow for greater flexibility in terms of features, design, and integration of additional tools that you might need. This solution is ideal for operators who have specific requirements or wish to differentiate their platform through unique offerings.
So, when getting a turnkey sportsbook, you can ask for your own unique design, additional software features, and anything that you want to add to the platform. In essence, with a turnkey sportsbook solution, you are telling the provider how you want to build the platform, and they are creating it per your requirements. All of this can also be done on white label sportsbook if you are willing to pay more, but turnkey platforms are specially designed for that reason.
Advantages of Turnkey Sportsbook:
- Customization: You can tailor the platform to your vision and your user needs.
- Control: You have more control over the process.
- On-demand content: You are choosing whether you want the complete platform from the provider, want some extra features or don’t need some of the features.
The downside is that turnkey solutions typically require a higher initial investment and a longer setup time compared to white label sportsbooks. You can read more about the topic in our article – How to start sportsbook with turnkey solution in 2024.
White Label Sportsbook vs. Turnkey Sportsbook: Which is Right for You?
Besides customization options, turnkey sportsbook and white label sportsbook also differ in other aspects that you should know about. First, it’s the licensing.
- Licensing – White label comes with a gaming license. It will be the license that the provider has the right to give away. In our case, we offer a Curacao gaming license and an MGA license which are among the top 5 sports betting licenses. Which one you want to choose is up to you, depending on your requirements, which markets you want to operate, etc.
While this is being taken care of in white label sportsbooks, turnkey sportsbooks come without a license. So, you need to make sure that you already have a license or can take care of this after getting a turnkey solution. Thus, if you don’t have the necessary funds or knowledge about the jurisdictions from which you want to get a license, we recommend using a white label sportsbook.
- Payments – Payments is another important aspect you need to be aware of. What do we mean by that? White label sportsbook has a full-fledged platform that incorporates a payment system with all of the methods a given provider can offer to you. In best cases, these methods should include credit cards, cryptocurrencies, e-wallets, and bank transfers. Since these are the most popular payment methods in gaming.
Nonetheless, turnkey sportsbooks do not come with a payment system. With turnkey sportsbook, you are still getting a complete platform built according to your preferences, but there is no payment system or license. So, you’ll need to incorporate payment systems through the different services of the same provider or look for other providers that specialize in payment systems.
So, again, to explain it in simple terms, with a turnkey sportsbook, the provider completely takes care of the technical side, and you will be taking care of the legal and commercial side of your business. While with a white label sportsbook, you are getting technical + legal support.
Moreover, choosing between a white label and turnkey sportsbook depends on several factors, like budget, time to market, and the level of customization desired. Both options provide a complete platform with all the tools and must have features of sportsbook software. But, all the aforementioned distinctive factors between white label and turnkey sportsbooks are worth considering. You also need to research a provider, our article on how to choose the sportsbook software provider will help you in this process.
If you’re aiming for a quick launch with lower upfront costs, then the white label solution is the way to go. It offers a straightforward path to market with less financial risk. Plus, you get a license and payment system.
On the other hand, if you’re more focused on creating a platform per your recommendations and with unique features, a turnkey solution is more suitable. It provides flexibility and control over the process of designing and creating your platform.
Conclusion
Choosing between a white label and a turnkey sportsbook is crucial for aspiring operators in the online betting industry. While white label solutions offer a fast and cost-effective route to market, turnkey solutions provide the customization and control over the process necessary for those looking to differentiate their offering. By carefully considering your business goals, budget, and plan, you can select the solution that best aligns with your vision for a successful sportsbook operation.
