Online Lottery Software

Starting a White Label Lottery Business Online (Pros & Cons)

4 Leaf Lotto
by 4 Leaf Lotto / Apr 22, 2022

Starting a lottery business online is easier than ever, but selecting the best lottery management system to power your business can be challenging. There are several options, each with unique benefits and drawbacks. You can develop your own custom lottery platform from scratch, work with a turnkey system developed by a lottery platform provider, or simply add your branding to an out-of-the-box, white label lottery solution. 

Choosing lottery management software is one of the most important decisions you’ll make as a new operator. You’ll want to do your homework to identify the best solution for your needs—whether that means launching quickly with limited resources, investing in the best solution for long-term growth, or making a splash with a one-of-a-kind lottery brand. 

In this article, we’ll explore the pros and cons of white label lottery software in depth, and look at alternatives, so you can start narrowing down your options with confidence.

 

What is a white label lottery?

A white label lottery is a lottery business that provides software with pre-built games, features, and management functions. An operator may add a logo and other branded elements to the software, such as colors and typefaces, to tailor the look and feel of the user experience. White label lottery solutions are popular with new operators who have limited resources and need a simple way to launch quickly.

 

Does a white label lottery need a gaming license?

Many jurisdictions around the world require lottery operators to obtain a gaming license and satisfy other regulatory requirements prior to starting their lottery business. With a white label lottery, the rules are different. An operator using a white label lottery solution is technically “sub-licensing” the license belonging to the software provider. 

In other words, an operator purchasing white label lottery software typically does not need their own license. However, the operator is generally restricted to doing business in the jurisdiction(s) covered by the provider’s license.

 

What are the benefits of white label lottery software?

Starting a lottery business online may be easier than ever, but it can still be a slow and expensive process. That’s where white label lottery solutions shine—by providing a quick, easy path from lottery business plan to launch. 

The benefits white label lottery software can provide:

  • No need to obtain a gaming license.
  • White label lottery software is pre-built and ready to deploy quickly. 
  • No need to test and debug lottery software before launching.
  • Starting a lottery business takes days or weeks instead of months.
  • Just add your logo, colors, and branding, and your lottery is ready to launch. 

 

What are the drawbacks of white label lottery software?

A white label lottery provider may offer a quicker time to launch for operators with limited resources, but it comes at a high cost. Those considering white label lottery software should consider the following drawbacks:

  • You are limited to the games, features, and integrations offered by a white label lottery provider. You won’t be able to expand your offerings later.
  • Aside from your branding, the user experience will be identical to other lotteries using the same platform in your market.
  • Expanding into a new market won’t be possible unless the white label provider is licensed there.
  • White label providers often operate their own lotteries that will be competing with yours.
  • A white label provider will have access to your sales, customer, and operational data.
  • High-commissions (up to 60%) will eat into your profits and limit your ability to invest in sales, marketing, and other efforts to grow your business.

  

What to Look for in a White Label Lotto Platform

Different white label lotto platforms will have their own strengths and weaknesses, but the best options will satisfy important criteria that help make your lottery more accessible, provide a quality experience for players, and offer key management features. Those include:

  • User experience – a quality interface and gaming experience for players
  • Customization options – these are rare, but valuable features if available
  • Multi-language – the ability to reach players around the world
  • Mobile-friendly – reach players on mobile devices
  • Lottery management – back office, payment systems, reporting capabilities, and more
  • Integrations – how big is the catalog of games and game types available
  • Security – critical to protect your data and your customer’s data
  • Technical support – a provider’s ability to quickly resolve technical issues
  • Reputation - reviews and testimonials that speak to customer satisfaction   

 

Are White Label Lottos the Best Business Solution?

White label solutions can get your lotto business up and running faster, often at a lower cost. You’ll also have games and features ready to go. This can be a big help for new operators who aren’t ready to build their own lottery business from the ground up.

Despite the quick time to launch, however, white label solutions can limit your ability to grow. In a highly-competitive industry, where player preferences and habits are constantly evolving, you won’t be able to compete for customers by introducing new games and features. Without a license of your own, you won’t be able to expand to new markets where they are required. And, a large percentage of your revenue will be lost to high commissions.

When choosing lottery management software to power your business, these are all significant considerations. Weigh all of your options, take your long-term goals into account, and be sure to pick a provider with a solution designed to grow your business, not just theirs.

 

Get a Lottery Business Plan That Works.

Many lottery businesses find success with software from white label companies. However, if you’re looking to differentiate with an original design, a curated selection of games and features, and updated offerings – a white label solution might not be for you.

When it comes to researching any lottery solution, don’t just get a software demo. Instead, get a free, customized lottery growth plan that maps your management needs from launch through all 4 stages of lottery growth. How? Schedule your introduction to 4 Leaf Lotto today—and set your lottery business up to win from the start.

 

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