New Online Gambling Site Entrepreneurs Should Be Aware of the Fundamental Differences Between Online Casinos and Online Sportsbooks 

At first glance, the distinctions between a white label online casino and a sportsbook may appear insignificant to entrepreneurs looking to capitalize on the current boom in popularity of online gambling around the world by establishing a white label online casino or sportsbook. Is it that different when it comes to accepting bets on a game of blackjack or a sporting event? When all is said and done, a bet is still a gamble, right? 

In both instances, a wager is placed, and the bettor either wins or loses the wager based on the outcome of the event. On the surface, this is correct. There are some important differences beneath the surface. The house has an advantage in casino games such as roulette and blackjack, which is generally recognized by everyone who has ever wagered on those games. This means that the operator has a positive anticipated value on every bet placed. When it comes to sports betting, it is tough to establish a specific advantage held by the house. Instead, there’s something called a vig, which is short for “juice,” and we’ll go through what that means later in this essay. 

Is a sportsbook required in addition to casino games? 

Even if your major market consists of online casino players, expanding your business to include a sportsbook may increase revenue and help you retain existing consumers. The opposite is also true for operators whose primary focus is on sports betting. A large percentage of gamblers like making bets on both casino games and sporting events. Because gamblers have more options than ever before, operators must deliver all of the betting options that players expect in a handy one-stop place. Lion Gaming Group’s packaged white label sportsbook and online casino solutions are available to iGaming operators. This is because Lion Gaming Group sells each of these products separately. 

Let’s go through the basics of an online casino and sportsbook, as well as what new iGaming operators should look for in white label solutions for online casinos and sportsbooks. 

Casino Online 

An online casino is governed by a basic set of rules. The rules of each game are distinct, as is the casino’s advantage. To maximize their odds of winning, bettors will try to obtain an advantage over the house by using betting tactics such as the martingale, the labouchere, or the anti-martingale. Because the house edge is often in the low single digits, the ultimate goal is to win through volatility rather than simply beating the house. Some gamblers choose to try their luck at winning jackpots on games that are more similar to lotteries, such as slot machines. 

Casinos use risk management strategies to mitigate the negative consequences of variance swings, which occur when customers perform better than expected. Risk management varies in each game, based on the operator, the technology provider, and the game itself. The Kelly Criterion is a risk management tool that is commonly used in casinos. The Kelly Criterion is a betting technique that argues that the amount wagered should be equal to the player’s perceived advantage. In its most basic form, the Kelly Criterion defines the percentage of the house bankroll that should be wagered on an event with better odds than expected to achieve exponential growth in the bankroll. The progressive jackpots that are incorporated in many slot games are managed by the iGaming software provider. These jackpots are fed by many casinos, and the money from the jackpot is distributed to all of the operator clients that the software supplier supports. 

Sportsbook 

When it comes to how iGaming companies make money, sportsbooks present a slightly more difficult revenue-generation problem than casinos. Even while professionals in the field of oddsmaking have advanced tremendously over the years, it is still impossible to predict the outcome of athletic events with total precision. As a result, bookmakers offer something called a vigorish to provide something close to a house edge (also known as “juice”). If a betting line is offered with the Moneyline as Team 1 +150 and Team 2 -190, for example, the sportsbook operator is expected to keep (also known as “hold”) 5.23 percent of the bets placed. To put it another way, the sportsbook anticipates earning $5.23 for every $100 gambled (also known as the “handle”). 

To reduce their risk, the vast majority of sportsbooks acquire their betting odds from one of the major odds feed firms, such as Sportradar, and they use managed trading services to limit the extent to which significant swings can be seen on any given athletic event. Professional bettors may find the betting lines to be rather enticing at times. This is because sportsbooks try to balance out how much money is bet on each side of the line to reduce risk, and they do so by changing the betting lines to make one side of the bet more appealing than the other. The majority of sportsbooks aim for a hold of roughly 5%, but this amount might fluctuate based on the sportsbook’s geo-target (with a lower hold for sports that are popular in that region and a higher hold for sporting events that do not attract as much betting action). 

What qualities to look for in a software vendor 

Individuals who want to get into the online gambling industry usually start by looking for a casino technology supplier. When researching white label casino solutions, one may get the idea that there are numerous options accessible on the market. Before you begin your search for a competent iGaming technology provider, you must first have a clear picture of the market sector you will be targeting. Are you aiming to run a more traditional and all-encompassing platform, a bitcoin casino, or a brand that is exclusive to a specific region? Because game preferences vary depending on geographic location and bettor type (for example, traditional versus crypto), as well as the level of localization required to attract customers in your geo-target, the betting technology you use, will be influenced by the specific market segment you intend to serve. 

If you wish to establish a cryptocurrency-focused casino, your options are severely limited because the bulk of iGaming providers currently do not allow bitcoin payment rails. Continue reading if you wish to run a cryptocurrency-focused casino. You can narrow the list even further by excluding any vendors who do not offer a sportsbook product. 

At this stage, you can start comparing the prices and characteristics of the remaining contenders. While reviewing a product’s features may appear difficult, comparing costs is a simple process. This is because there has been relatively little research and development of better-centric goods in the business for the better part of the last decade. Instead, the emphasis has been on backend marketing tools, which has led to numerous betting technology companies having little visible differentiation between their solutions. To help you with this part of the process, we have developed a free guide of questions to ask when dealing with iGaming technology suppliers. In this area, you get access to the guide.