White label gambling websites
A white label website is designed to look and feel like a company or brand but the contents and services provided on the website are operated and managed by another company.
In the typical white label gambling partnership there is what is understood to be a marketing partner and a gambling partner. The gambling partner (also known as the white label provider) requires an operating licence, but the marketing partner generally does not.
The white label provider partners up with companies who can market the gambling product utilising their unique brand and in return pays the marketing partner a profit share of the revenues generated.
This is similar to an affiliate deal but the marketing partner generally has such a well-known brand identity so that new customers can be acquired through the brand’s website. In return the marketing partner is paid a higher amount than an affiliate typically 50% compared to 30% for an affiliate.
Example of a white label gambling website
An example of a white label website might be a newspaper or TV company branded website. The newspaper, the marketing partner in the deal, only promotes the website and has no gambling interaction with the customer.
The marketing partner might market the gambling product in a number of ways including:
- advertising the product either in the newspaper, magazine or on TV
- by providing advertising space on a website
- by email to a list of members
- by post with offers to visit the website
- by SMS text messaging.
Once a customer joins and takes part in the gambling product they are looked after and managed by the white label gambling provider.
The white label gambling provider is responsible for, amongst other things:
- registering the customer and conducting age verification and KYC (know your customer) checks
- providing the product for customers to gamble on
- managing customer funds
- security of confidential customer details
- providing customer support for the gambling product.
The white label provider must hold the appropriate licence for the type of gambling product made available to customers.
Who needs a licence in a white label deal
The white label provider is providing the facilities for gambling and, in order to advertise and operate in Great Britain legally, is required to be licensed by the Gambling Commission.
As long as the marketing partner does nothing more than offer marketing via their branded website they do not require an operating licence.
If the marketing partner purports to be the party responsible for the gambling contract they may require an operating licence.
The Gambling Act 2005 section 33 (3) allows for the promotion of a gambling product as long as the owners and operators of the gambling product hold a valid operating licence authorising the activity.
Information that should be provided to customers
The website should clearly state that the gambling product is licensed and provided by the gambling partner and not the marketing partner.
The marketing partner must make it clear to customers that the gambling product is managed by another entity and not promote the gambling product as ‘theirs’ otherwise the marketing partner may require a licence.
The gambling customer’s contract is with the white label provider and this must be made clear to them, at least by the time they come to register and accept terms and conditions.
What you need to tell us
If the white label provider holds or intends to hold a Gambling Commission remote operating licence, it is required to notify us about the white label URL or domain name that the gambling services will be delivered from. Licensed operators can add or remove white labels with our online eServices.