Cost Analysis: Evaluating the Financial Implications of Operating a Turnkey Casino

In the 21^st century, it has become quite popular to use ready-made software to ensure the operation of one’s business. In the software market, two types of ready-made software are distinguished: out-of-the-box and white-label (hereinafter referred to in this text as WL). 

There are also cases where the software does not exist yet with either the client or the provider, and the client orders its development from scratch. This solution is called “turnkey”. So, considering this kind of software too, there are three types of it in total: out-of-the-box, white-label, and turnkey. There are significant differences between them in many aspects of their operation, and we have already discussed these differences in our blog in the past (we recommend our readers familiarize themselves with previous blog publications to understand the distinctions between these types of software).

In this article, we discuss the practical aspects of the cost of implementing and operating a WL solution in online gambling establishments. We should immediately note that this process is not simple and requires considerable attention and the involvement of experts with the relevant knowledge to get everything up and running. So, if your business does not have the necessary expertise, the specialists at our company, BoomAff, offer you their services for the full-cycle project implementation of a WL solution, from finding a suitable WL solution for you to its installation, configuration, support, and ensuring its continued operation with the efforts of our team. We have relevant experience in implementing and supporting various WL solutions for corporate clients working in the online gambling and betting segments across multiple geos.

A WL solution for ensuring the operation of an online gambling venue is a ready-made, comprehensive software package developed by a third-party company specializing in software development. Such companies usually provide their developments to corporate and private clients in a SaaS format (that is, Software as a Service), through a subscription (monthly, quarterly, semi-annual, or annual). 

This software is developed with the needs of clients in mind and covers the full range of business processes carried out in a typical gambling club (or, if there is no 100% coverage, then at least it covers most of the business processes, and the remaining functionality is either developed for an additional fee, or another provider with broader functionality of its software is sought).

A WL solution typically consists of a client and server side. The client-side is further divided into two parts: one for the venue’s administration employees and one for players. The player side is often presented as a gambling website (and where not prohibited by legislation and the policies of the App Store and Google Play—as a mobile application).

Why is the implementation of a WL solution popular among gambling business owners today? The answer is quite obvious: because it covers all or almost all the necessary functions for running a gambling establishment, is a ready-made solution that mainly requires white label online casino cost payment to use while there is no need to be an expert in software development and technical support, and because this implementation addresses the technological business needs, leaving only the administrative functions of managing and developing the gambling business.

To understand how much business owners will need to invest in such WL software, in this article, we cover information on the costs of initial implementation and maintenance. The exact costs will depend on many factors, but at the very least, we will try to provide a range of expenses.

Initial Setup Costs

Each implementation of a technological solution begins with the configuration of the proposed system to meet client needs. These needs are gathered by the provider company at the initial stage, and the system is then configured based on the collected information, including branding with a client’s brand. Yes, this is one of the clear visual advantages of WL solutions compared to other options available on the market.

For the initial setup, providers charge between zero and $/€50,000. Keep in mind that if a provider doesn’t charge at this stage, the annual maintenance is likely to be more expensive than that of competitors, which is not beneficial for you as a business owner in the long term. Therefore, when evaluating existing provider proposals, always look for information about the total cost of their offerings over the span of 5-10 years of your gaming club’s operation to assess the overall expense in the long run.

The costs at this stage will typically include payments for:

• Connecting to the system as a new user
• Customizing it to your needs and business processes
• Creating accounts for your employees with the necessary access rights
• Connecting games from the number of providers included in this WL solution (each provider has a different number of games and developers, ranging from dozens to 100+ developers)
• Integrating a payment gateway
• Setting up the security system
• Branding according to your requirements.

What is generally NOT included in the initial payment, and for which you will need to pay extra, are:

• Licensing in a specific jurisdiction (unless the WL solution allows for joining an existing license as a sub-licensee—for an additional fee or as part of the initial payment)
• Opening accounts in banks or other payment institutions in your chosen jurisdiction to receive money from players and make payments to your business partners (this can be done for an additional fee by the WL solution provider or by third parties, for example, our company BoomAff, which expertly assists in finding the right jurisdictions, preparing documentation packages for account opening in financial institutions, and supporting you until the account is successfully opened and you receive its requisites)
• Integrating modules and software that are not part of the WL solution: analytical software, AI-based chatbots, standard marketing and affiliate marketing software, CRM systems, software for additional management reporting, etc. Typically, these types of software are available in good WL solutions, either as additional software from the same provider or through integration with the WL solution via API or other technical methods.

What additional costs you, as the user of a WL solution, will incur at this stage of starting work with the software:

1. Licensing, if not included in the cost. The standard price range for obtaining good licenses, such as listed below, is from €3,100 to €250,000. Plus, don’t forget about the annual maintenance of the license.

For reference:

The licensing costs in some good national and international jurisdictions are (broken down by the cost of obtaining the license + the cost of its annual maintenance):

• Alderney: €20,700-€41,300 + €41,300-€470,000
• Belgium: €250,000 + from €20,000
• Curacao: €14,500-€34,000 + €4,000-€7,000
• Denmark: €39,000 + from €7,300
• France: €20,000-€40,000 + from €40,000
• Germany: €50,000 + taxation
• Gibraltar: €120,000 + from €120,000
• Italy: €200,000 + from €50,000
• Isle of Man: €6,000 + from €41,400
• Kahnawake: €27,000 + from €17,000
• Malta: €5,000 + €25,000-€600,000
• Portugal: €18,000-€30,000 + 12%-30% of GGR
• The UK: €3,100-€67,700 + €4,000-€940,000
• The Netherlands: €48,000 + from €50,000
• Spain: €38,000 + from €60,000
• Sweden: €35,000 + from €26,000.

2. To successfully configure your new software, you will, of course, need a brand book. It outlines all the brand elements and their behavior on websites, in printed materials, etc. If you don’t yet have a brand book, you will need to spend time and money to develop one. The price and timeframe will vary significantly depending on the country where you order such development, whether you already have any drafts or preferences in this regard, and how much influence all stakeholders have on the process. Prices start at around €1,000 in cheaper countries, €2,000 in more expensive countries, and usually range from €10,000 to €20,000. However, in the U.S. and Canada, prices can reach up to $50,000.
3. Consider marketing expenses to announce to the market and your target audience the opening of your new gaming establishment. Here, costs will depend on your goals and business vision, as well as your available budget and the geo where your business will operate. However, typically, you can expect to spend €10,000 to €50,000 on a decent advertising campaign lasting 1-2 months across multiple channels (PPC, SEO, SMS, Email, SMM, affiliate marketing, and influencer marketing). Alternatively, plan to allocate around 30-40% of your launch budget for marketing alone.

Ongoing Operational Costs

So, the first stage of integration and setup is complete and now you have an idea of how much does it cost to start an online casino. It’s quite a tough stage, to say the least: complex, lengthy, filled with nerves, meetings, difficult choices, and analysis of lots of options. This process can be made easier by involving an expert team, like ours at BoomAff, but still, you cannot underestimate the high level of client involvement required during the implementation of a WL solution.

The primary ongoing (operational) costs consist of two main parts:

1. The monthly subscription for the WL solution (the fee for using it). This is a fixed price based on the service package you’ve chosen, depending on usage volume, user count, players, games, etc.—each WL provider sets its own pricing. It can start at €5,000 and go up to over €100,000 per month for larger-scale usage.
2. A portion of the GGR (Gross Gaming Revenue) given to the WL solution provider, game providers, and licensing authorities as a fee for maintaining the license (as discussed above). The distribution of GGR between you as the gambling operator and all other providers of various services can vary. You might pay out anywhere from 7.5% to 60% of GGR each month. Payment can be calculated monthly or on another basis: quarterly, semi-annually, or annually. For example, if you had €4 million in wagers for the month, with a real GGR of 6%, this would equal €240,000 of the gross income. If you’re paying 7.5% GGR to all parties involved, you would keep €222,000. If you’re paying 60%, you would keep €96,000. From these amounts, you must deduct your fixed subscription costs for the WL solution and the additional operational costs (as below).

Additional operational costs include:

• Payment gateway fees for handling your transactions, which typically involve a fixed fee + a percentage of the transactions + a standard monthly fee for client service. In some cases, a portion of GGR may also be deducted, though this is less common. There will also be other fees, which can be numerous, and which may be paid either by you as the business client or by your players if they incur them. Examples include payment tracking, reversals, chargebacks, etc.
• GGR percentage to game providers, if this isn’t included in the base cost of the WL solution: up to 50%, and sometimes more for high turnover and profitability of your gaming establishment.
• Losses from currency exchange rates (when fluctuations between currencies work against you and favor the player). Exchange rate differences are especially significant between cryptocurrencies and fiat currencies, as the former tends to fluctuate dramatically while the latter is far more stable.
• Employee salaries plus salary taxes.
• Costs for remote outsourced staff.
• Marketing expenses (this includes all external payments for advertising on your own and third-party sites and blogs, as well as the cost of rewards and bonus programs).
• Costs for additional pieces of software in your system architecture.
• Office rental expenses if your team isn’t entirely remote.
• Depreciation costs of capital assets.
• Loan repayments if you took out loans to start the business.
• Taxes on the business itself, as well as specific taxes on gaming operations (if not already part of the licensing fees).
• Sponsorship and partnership costs.
• Hosting fees for your gaming website and commissions from your mobile app revenue taken by the App Store and Google Play, if payments are processed via those companies’ mobile apps, and if the gaming website hosting isn’t included in the price of a WL solution.
• Other costs, such as cybersecurity, legal and consulting services, insurance, and “unofficial payments” where applicable.

Ideally, monthly revenue should cover all these expenses plus strive to return the initial investment you made to start the business. WL solution providers typically claim a return on investment (ROI) period of 6-12 months, though in practice, this can vary widely, most likely, in the range of 12-36 months.

Compliance and Regulatory Costs

Every online gambling establishment is required, according to the terms of its current license in a particular jurisdiction, to implement and maintain compliance procedures. These include AML and KYC compliance measures as well. Each gambling business owner incurs costs for implementing these systems, assuming they are not included in the WL solution they are procuring.

Although WL solutions generally cover the technical support for these procedures, the operational cost online casino is borne by the gambling business owner. This includes expenses for personnel managing compliance processes, maintenance of their work, and the costs of external and internal audits of players and other participants in the gambling process, in accordance with AML, KYC, and other procedures required by the specific jurisdiction.

Let’s start with the basics: these procedures, their methodological implementation within the organization, and the software used for their practical application are subject to certification by the licensing authority that issues the gambling license. In the vast majority of cases, these costs are part of the overall expenses incurred by the client to obtain a license for their gambling establishment. However, there are selective, routine, and scheduled inspections, as well as those based on player complaints, conducted by the licensing authorities. These inspections are paid for by the license holder. Typically, authorities do not abuse these inspections, understanding that it is unwise to hinder a functioning business, so most of these inspections are triggered only by player complaints. This can add €10,000–€15,000 annually to the cost of maintaining the license (if there were any inspections in the current year). To ensure full compliance, additional inspections may occur during relicensing or if the operator reaches a significant GGR/GGY threshold in jurisdictions where gaming fees are based on GGR/GGY (or when the type of license changes).

Next, let’s regard operational functionality. While AML/KYC and similar software, including anti-fraud and security features for the gambling club itself, are typically part of the WL solution, certain operational functions require additional payment. These expenses include:

1. The cost of verifying each player’s identity and presence on the lists when they initiate such a procedure. Fees can range from €0.50 to €2-3 per verification (per each query to a specific database). During checks, the system queries external databases, one or several, depending on which databases are mandated by the gambling jurisdiction’s regulations. Multiple checks for the same person may occur over their activity period in the gaming club. The list of possible databases being addressed includes:

• World-check (to discover politically exposed persons) and PEP lists, maintained by Refinitiv (formerly known as Thomson Reuters), LexisNexis, and Dow Jones Risk & Compliance
• Global sanction lists (various kinds of them are maintained by such organizations as the US Office of Foreign Assets Control, UN Security Council, or European Union to discover people under financial and economic sanctions)
• Credit references and credit scores (maintained by different organizations in different countries, such as, for instance, Equifax, Experian, or TransUnion) to identify not credit score of people (because for gambling establishments, this information is pretty much useless) but to find potential fraudsters and people with fraudulent behaviors
• Interpol Red Notices (a global list of wanted individuals in search for various crimes)
• Panama Papers (maintained by ICIJ to list fraudsters, launderers, and tax evaders)
• Various fraud prevention databases (such as maintained by CIFAS, NFI, or other organizations)
• Gamstop lists (country-specific), for instance, working in the UK, Denmark, and in multiple other countries
• OFAC SDN list (maintained by the US Department of the Treasury) to list illegal foreign asset control individuals and legal entities
• Other databases (country-specific or region-specific).

2. Player identity and document verification. This may involve the aforementioned databases or other national and international sources. Fees for one query to a single database can range from €0.50 to €5, depending on the database, response speed required, and level of detail required. Verification can be conducted using national and foreign passports, driver’s licenses, utility bills, seaman’s IDs, and other documents.
3. Monitoring of suspicious transactions is typically always running in the background via specialized software. If a specific transaction meets the criteria for notifying international bodies like Interpol, the notification is made in real-time, with fees ranging from a few euro cents to a few Euros per exchange of information. Such exchanges may also be free. International exchanges of this kind are not frequent. Not all monitoring programs are equipped with this functionality, only those that are required to have it according to the rules of the particular gambling jurisdiction. These may include standalone solutions like ComplyAdvantage, NICE Actimize, SAS AML Solution, and FICO AML, or they may be part of the WL solution.
4. Suspicious Activity Reports (SAR) are submitted by gambling establishments in some jurisdictions as separate reports on potentially fraudulent activity related to money laundering, terrorist financing, or other significant events subject to monitoring. Legal fees related to reviewing these reports and associated activities can run into thousands of euros. These costs are not always direct but rather an additional operational burden for legal support of the gambling venue’s activities. The receiving bodies of SAR reports vary by country. In the US, it’s the Financial Crimes Enforcement Network. In the UK, it’s the National Crime Agency. In Malta, it’s the Financial Intelligence Analysis Unit. In Australia, it’s the Transaction Reports and Analysis Centre. In the EU, it’s the Financial Intelligence Unit. In Gibraltar, it’s the Financial Services Commission.
5. External legal and regulatory consultations—when the WL solution provider cannot give a complete or adequate response to emerging issues, particularly complex ones. In such cases, gambling club staff must turn to external consultants in the specific geo, paying from several hundred to several thousand euros per standard hour.
6. Auditing and reporting, including compliance procedure checks. While such audits are a normal part of maintaining an online casino cost gambling license and do not typically lead to additional costs, extra expenses may arise. First, if a violation is found, a fine may follow, ranging from a warning to thousands, tens of thousands, or even hundreds of thousands of euros, depending on the nature and seriousness of the violation and its duration. Second, the regulatory body may require the violation to be corrected, which might incur additional costs.
7. The operation of responsible gaming tools and practices, including self-exclusion tools. Their operation may require access to external databases in certain jurisdictions. All such lists are free for players, while the cost of querying the lists by gambling operators is included in their national license fees. Operators must connect to these lists at the start of their business activity, which may require initial setup costs if the WL solution provider has not provided such setup. Examples of national self-exclusion lists include:

• Gamstop, Sense, and Moses in the UK
• BetStop in Australia
• PlayPause, Pennsylvania’s Self-Exclusion List, New Jersey’s Self-Exclusion List, West Virginia’s Self-Exclusion Program—in the US
• Ontario Self-Exclusion Program in Canada
• Self-Exclusion List in France
• Self-Exclusion List in Belgium
• OASIS in Germany
• SpelPause in Sweden
• Rofus in Denmark.

Additionally, it’s important to remember that each gambling jurisdiction has its own regulatory nuances. WL solution providers have compliance systems embedded only for specific jurisdictions, ensuring their solutions meet the requirements of those jurisdictions alone. If the gambling club owner wishes to expand their operations into jurisdictions not covered by the WL software’s functionality, it will lead to the following costs and risks:

• Transitioning to other software that fully complies with the new jurisdiction
• Modifying the WL software to meet new needs, which could cost tens or hundreds of thousands of euros
• Operating without compliance in the new jurisdiction—a risky option that could result in fines, suspension of operations in that jurisdiction, and the loss of the gambling license.

Marketing and Player Retention Costs

Thanks to affiliate marketing, online gambling venues have a great opportunity to attract new players without spending much effort themselves. All the efforts are put in by affiliate marketers, who are paid for their success in bringing in customers. Your costs for affiliate marketing are part of your overall marketing expenses, which also include channels like PPC, Google Ads, SMM, Email, SMS, SEO, and influencer marketing.

In this area of the marketing industry, there are established rules regarding compensation for affiliate marketers:

1. Revenue Share. You pay the marketer a portion of the net profit generated by the customer over a period (their deposits minus winnings withdrawn from the gaming parlor balance). Revenue Share can be calculated to pay out compensation for a limited time, such as a month, quarter, half-year, or year that the customer spends at the gambling establishment and plays for real money. It can also consider the entire lifetime of that customer at a specific gaming parlor, with the affiliate marketer receiving compensation as long as the player they brought in continues to generate profit. The range for RevShare varies significantly depending on the geo and specific gaming club, typically between 15% and 70% (with a common range of 25% to 40%).
2. CPA. This is a fixed payment for the first deposit made by the customer. Specific conditions are set: minimum deposit amount + specific payment amount based on the deposit sum (or a percentage of that amount). Commission amounts usually range from 10% to 50% of the deposit, but not exceeding a specific cap, such as €100-250.
3. Hybrid. This combines Revenue Share and CPA. The structure is negotiated directly with each gambling club and can vary individually, depending on how effectively a specific marketer performs and the quality of the players they bring in.
4. Pay per click, pay per lead, pay per impression—these are unpopular payment options today because they do not guarantee quality results for gambling establishment owners. However, they have been used in the past and continue to be used at some venues, albeit on a relatively small scale.

Thus, as a gambling establishment owner, you pay at least 15% RevShare or a percentage of the first deposit or a combination of both while acquiring high-quality players who will generate profit for you. To improve the quality of the players you attract, you need to increase the rewards for your marketers.

Additional marketing costs that you incur are related to bonuses and loyalty programs:

• Bonus money
• Free spins
• Cashback
• VIP rewards
• Other rewards.

In the structure of your regular expenses, these costs can account for 5% or more of your monthly gross revenue (or marketing budget if a stable stream of profit has not yet been generated). It is normal for these costs to occupy 20% and even 30% during the initial promotion of your gambling establishment and for them to decrease to 5-10% once it is well-established. These costs are intended for both attracting new clients and retaining existing ones.

So, with gross revenue of €100,000 per month (profit after paying the portion of GGR to those entitled to it), it is reasonable to budget between €5,000 and €30,000 for these expenses.

To gather all this data, the WL solution used by the gambling establishment typically includes a dashboard where administrative staff can monitor all statistics from various perspectives. The payment for this functionality is typically included in the software service costs.

Technology and Security Costs

One of the strong advantages of WL solutions acquired from reliable providers is that the cost of service in terms of technological functionality, server hosting, optimal bandwidth, cybersecurity measures, and game expansion is included in the regular support fee for the software. On the other hand, if you opt for a non-WL solution, such as one developed specifically for you from scratch or an out-of-the-box solution, you will have to pay for the functionalities just mentioned.

Thus, the overwhelming majority of modern WL solutions popular in the market are equipped with:

• Cybersecurity measures to protect sensitive player information, consisting of firewalls, encryption, monitoring, and anti-fraud tools. If such functionalities are not included, then for online gambling establishments, integrating the corresponding software into their technological infrastructure, the cost can be from several hundred euros to over €10,000 for a firewall (per month). Implementing encryption protocols may cost up to €1,000 (one-time payment) plus the cost of a programmer’s work to install encryption on all online communications. We have already discussed the prices for anti-fraud and monitoring tools above, particularly concerning the usage of databases for KYC and AML. Monitoring suspicious player activity should be part of modern WL solutions.
• Good server hosting and bandwidth, capable of supporting tens of thousands of simultaneous players (and if necessary, scaling significantly with an appropriate increase in monthly subscription fees for the software). Fast bandwidth and a responsive server supporting multiple concurrent connections are necessary to ensure optimal performance and uptime, particularly for live dealer games. If server hosting and bandwidth services are not included in the WL solution for some reason, you may need to pay monthly from €10,000 to €50,000 for quality cloud hosting plus €2,000 to €10,000 per month for 1 GB of bandwidth.
• Game expansion capabilities for continually adding new games to keep the player experience fresh and competitive, from existing providers. This is achieved through a game aggregator function that many modern WL software providers have. Therefore, you do not need to personally monitor new releases from each of the 100+ suppliers available in the market.

The prices mentioned above depend on the geo, solution provider, transaction volume in the gambling club, and its current technological infrastructure. However, we reiterate that when purchasing a modern WL solution, all these costs are usually part of the monthly service fee, which is relatively low compared to acquiring individual services from third-party providers. The WL usage cost starts from €5,000/month (or, if considering options with payment as a percentage of GGR, it starts from 7.5%).

Revenue Generation and Break-Even Point

Online houses of gambling earn in several ways:

• The direct losses players incur from bets, as gambling is essentially a risk, and every casino has a mathematical expectation of income known as the “house edge”, which is its main source of income. The house edge for each game varies, typically from 1% to 15%. The average house edge across the portfolio of all games will depend on the mix of games played by players in a given period of time and can be around 5-7%.
• Organizing poker rooms and tournaments. Gaming clubs take a so-called “rake”, which usually ranges from 2.5% to 10% of each participating hand. When an establishment organizes poker tournaments, the entry fee can be substantial on its own, collected from players upon entering the tournament or from the prize pool formed by the players before it is paid to the winner.
• Entry fees for competitions and tournaments. Besides poker, the establishment may organize other events related to different types of games. The entry fee could be the purchase of a ticket for a specific amount, making a minimum deposit, or placing a certain number of minimum bets in specified games. Thus, the deposit is spent due to the natural house edge on bets.
• Payment for purchasing bonuses in games and within the gambling establishment’s interface (for example, through an internal store). That’s usually free spins and bonus money. Many slots feature an option to buy bonuses on the spot. A larger portion of the purchase goes to the game provider, while a smaller portion goes to the gambling establishment. The appeal of these in-game bonus purchases lies in their high cost, often tens to hundreds of times higher than that of regular bonuses, due to the nature of their acquisition: here and now. When a player purchases bonuses through the website/app interface, not inside the game, the price is much more reasonable than during an in-game purchase. For example, a player bought 100 free spins in a specific slot for €150. Up to €50 of this will cover costs incurred by the gambling establishment as part of its marketing expenses, as we discussed earlier, while €100 will be distributed between the game provider and the gambling establishment according to the RTP of that game and the outcomes that the player receives. As a result, the gambling establishment retains between 40% and 92.5% of GGR, depending on the payment terms of its WL solution.
• Mandatory wagering requirements. Houses of gambling impose mandatory playthrough requirements for the bonuses they give. Each regulated gambling jurisdiction sets its own rules and restrictions regarding allowable wagering conditions. In some geos, they are player-friendly, such as x5 or x10. In others, where the market is loosely controlled/regulated, gambling venues can set wagering amounts that are unfavorable for players, for example, between x40 and x100. Notably, anything above x50 is mathematically and statistically impossible to clear, so the player ends up losing their entire deposit due to high wagering requirements. In other words, if a player does not refuse the reception of bonuses, they lose their entire deposit and all associated bonuses due to the high wagering requirements, which becomes gross revenue for gambling establishments.
• Raffles and lotteries. Players can purchase tickets to enter lotteries, for example, for €1. In return, they get a chance to win a substantial amount, such as €1,000. By increasing the number of tickets purchased, an individual player increases their chances in the overall pool. The number of tickets bought by participants must exceed the prize pool or the single grand prize being drawn. The size of the prize itself is a marketing expense, while everything purchased by players above the prize amount is gross revenue for the casino.
• Fees for withdrawing winnings. Gambling establishments may impose a commission for withdrawing funds from a balance, encouraging players to continue playing. This is usually a small percentage, for example, 1.5% (plus a fixed amount or without it).
• Sports betting, if offered by a particular gaming club. The club takes a commission from each bet for its services (usually a small percentage).
• Purchases of titles and statuses in the establishment’s VIP program. If players do not organically rise through the levels of the establishment’s VIP system by playing and winning, they can buy VIP levels for money.
• The margin difference in currency exchange. This is especially true between cryptocurrencies and fiat money, where the exchange rate differences can be significant due to fluctuations and the commercial rate set by the gambling venue, which differs from the market rate to the venue’s advantage. Commission revenues can reach up to 10%, but typically range from 0.5% to 5%.

All the revenue sources listed above are parts of the generated cash flow that leads to the establishment’s profitability. Every business that invests money in acquiring a WL solution and pays for its maintenance seeks to achieve a return on investment and generate profit. According to WL software providers, ROI occurs within 6-12 months, but these are rather abstract figures that do not take into account the thousands of everyday business nuances. Real payback periods are more likely from 12 to 36 months.

To reach the breakeven point and achieve a return on investment quicker, BoomAff recommends incorporating long-term profitability strategies, such as scaling operations to more markets and customer segments, including more games, increasing gamification to generate new revenue streams, and increasing player LTV through various marketing efforts and the use of quality big data analysis.

Comparing Turnkey vs. White Label Solutions

Not every technological solution is created equal. WL solutions are designed to allow operators to quickly enter a new market, which can be achieved in as little as 4-6 weeks if all initial data is prepared in advance: descriptions of user roles and business processes, a brand book, and a marketing strategy, so that the WL software provider only makes unhindered configurations. Compared to other solutions, WL options are the most cost-effective and practically functional, and are currently used by hundreds of operators in the gambling market.

A turnkey solution involves a lengthy process of developing new software from scratch or based on previous developments, customizing its functions to fit every aspect of the client’s business operations. The development based on business requirements is a long process that can easily stretch for 1-2 years and can surpass €1 million in cost. This is a significant financial downside of such a solution.

The financial advantage of a turnkey solution is that the initial costs are the highest at the outset, but over time, they will be lower than those of a WL solution in the long term (10-15 years). On the other hand, will your gambling business really operate for that long? Additionally, you will need a professional in-house team to maintain the software’s functionality and carry out all administrative and business functions. This can be both cheaper and costlier than WL solutions. Although turnkey solutions do offer greater control over business processes and operations, they do come with higher financial responsibilities, which can be detrimental for the business if the scale of operations does not increase to the point where maintaining its own technological infrastructure becomes more financially justified than using WL.

Conclusion

In conclusion of this review, we would like to highlight an important point: remember that this article contains a lot of data, the relevance of which is not infinite. For instance, we provided price and cost data that are broadly applicable for the years 2022-2025. But keep in mind the concept of “inflation,” which gradually but steadily devalues all world currencies. For instance, from 1960 to 2024, the American dollar was losing on average 1.3% of its value each year (having lost 89% of its value since 1960: 1 dollar in the 1960s was equivalent to 8.69 dollars in 2024). Although price revisions for some of the items mentioned here are not directly related to inflationary expectations (such as the cost of gambling licenses), they still change, often abruptly, when the relevant regulatory authority decides to implement the next price revision (for example, once every 5-7-10 years). However, inflation does affect the cost of many other things on a year-to-year basis: salaries, GGR, contractor expenses… Consequently, the prices listed in this article will completely or partially lose their accuracy starting from 2035. If you are reading this article in 2035 or later (assuming the Earth and humanity still exist), keep in mind that over 10 years have passed since 2024 (when this article was written), and the prices mentioned here are no longer relevant for the business calculations of your time.