The sports betting industry in both the United States and regulated gambling markets around the world is comprised of three different types of betting outlets. There are land-based sportsbooks, online sportsbooks and private bookmakers.
The typical land-based sportsbook in the US are connected with casinos and horse racing tracks in states with legal sports betting. The best example of this type of betting venue is the sportsbooks located in many casino hotel and resorts on the Las Vegas Strip and the Atlantic City Boardwalk in New Jersey.
The advent of betting on sports through the internet added online sportsbooks to the mix. Most are located offshore in regulated Caribbean and Central American countries. Some of the biggest online books are also located in Canada and the UK.
The final group is private bookies working with their own select group of sports betting customers. Most of these bookmakers work closely with a pay per head bookie software provider to conduct business online.
As a relatively new offshoot of the pay per head business models where independent bookmakers pay a weekly fee for each of their active betting customers is the White Label Sportsbook. This evolution of an ever-expanding independent bookie industry takes things to a whole new level with a professional online book operated by private ownership.
Definition of a White Label Sportsbook
The concept for a white label sportsbook was a natural progression of the pay per head system that was originally designed to take a private bookie operation online. With the white label business model, the emphasis shifts heavily towards producing the proper software solutions to run and manage an independent sportsbook.
While most price per head bookie software plans include an online dashboard and betting platform, the white label approach takes things to a whole new level with a professionally designed website that has been completely customized for the owner’s particular needs.
This level of online professionalism is so high that it would be hard to tell the difference between a privately owned white label sportsbook and a big commercial sportsbook. They are designed to completely level the playing field with even the biggest offshore books operating online.
There are a few companies that specialize in white label sports betting solutions. However, the growth in popularity is being driven by the pay per head industry. This has become the next generation of sports betting software solutions for bookmakers that are looking to take their business to a whole new level. It is one thing to run a private bookie business with a set customer base. It becomes a whole new ball game when a bookie has the ability to market an independent sportsbook on a global scale.
The four-step process for starting a white label sportsbook is as follows:
- Finding the Right Source For Your White Label Sportsbook
- Crafting an Agreement That Meets Your Needs
- Working With The In-House Design Team on Customization Features
- Sign Off on The Finished Product Ahead of the Online Launch
White Label Sportsbook vs. Pay Per Head Sportsbook
The basic concept behind a white label sportsbook and pay per head bookie software are the same. They are each ways that an independent sports bookmaker can completely automate their sports betting business.
The white label approach mirrors the big commercial sportsbook. It is designed to reach sports bettors across the nation and around the world. The pay per head software solution package is designed to take a bookie’s business online with a select group of sports betting customers.
Any private bookie looking to expand a betting base well beyond its current status can turn to the white label sportsbook as the ultimate marketing tool to achieve that objective. A few of the top features and benefits that separate a white label book from the typical pay per head application are as follows:
- All URL’s are optimized for search engine visibility, including meta tags for keywords, descriptions, content headings and other relevant tags.
- High end graphics and sound that carry through on any number of browsers and devices.
- N-tier affiliate program capabilities with in-house support for a variety of online marketing media venues.
- Implementation of various bonus incentives that offer betting vouchers, coupons, point-based loyalty programs and customer referral benefits.
- Fraud protection to block unauthorized transactions as well as early detection of any fraud patterns that may arise.
One of the biggest differences between a white label sports betting solution and a pay per head plan is cost. Most while label sportsbooks incorporate a revenue share program to pay for this service, while the pay per head cost is always tied to an active betting base.
The Future of The Independent Sportsbook Industry
As much as the sports betting industry as evolved over the past few decades with the advent of online betting software, the next few decades could be even more turbulent when it comes to advanced technology and complex software solutions.
The expansion of legal sports betting in the US on a state-by-state basis will add even more competitive pressure on the offshore books that had this market basically to themselves. The rapid expansion of land-based sportsbooks tied to casino gambling venues and horse racing tracks will also work to increase competition.
The positive aspect of this growth phenomenon is the overall expansion in the volume of people betting on sports given its new stature in the US market. Keep in mind that even with the recent expansion of land-based sports betting and an existing network of hundreds of online commercial sportsbooks, private bookies are still handling close to two-thirds of the sports betting action in this country alone.
Today’s sophisticated sports bettor is looking for a higher level of customer service and personal attention to their online betting accounts. The idea of working with a private bookie or independent sportsbook has a wide level of appeal that the big commercial sportsbooks will never be able to match. This is the kind of competitive edge that will always keep the private bookie in business.
This does not mean that it will be easier to run and manage a successful independent bookmaking business. It simply means that the demand for this service will more than likely increase with a much larger sports betting customer base.
The business tools provided by either a white label book or pay per head software package are comprehensive enough to give bookmakers everything they need to be successful in today’s competitive business environment.
Looking forward, the quality bookie software providers will continue to refine and improve their operational systems. The market leaders have consistently made the necessary investments to keep pace with the ever-evolving sports betting industry. The most successful private bookies and independent sportsbooks have a high level of professionalism in their business practices. These operators will continue to prosper both in the short team and over the coming years.
The true sign of a successful business is the ability to fill a market need with the right product or service. As the overall sports betting industry continues to expand in both size and volume, the private bookmakers and independent sportsbooks that best fill the increased demand will prosper the most.