The iGaming industry is booming, with many entrepreneurs looking to launch their own online casino or sportsbook through white label solutions. However, not all providers operate with integrity. Some unscrupulous companies take advantage of inexperienced operators, leading to financial losses, legal troubles, and platform failures.

In this article, we expose the most common white label scams, how to spot them, and how to choose a trustworthy provider.

What Is a White Label Platform?

A white label platform is a pre-packaged solution designed to help businesses launch their operations with minimal hassle. It comes equipped with all the necessary tools, from software to game content and payment solutions. Essentially, it’s an all-in-one service that enables you to focus on marketing and customer acquisition while the provider handles the technical heavy lifting.

For example, GamingSoft’s GS Global White Label Solution is tailored to help operators rapidly enter competitive markets. With features like seamless integration, a customizable interface, and a robust game portfolio, it ensures a smooth and efficient start for new ventures.

The Scams

1. Hidden Fees & Unfair Revenue Share

Some white label providers lure operators with low upfront costs but later impose hidden fees, such as:

• Extra charges for software updates, support, or maintenance.
• Unexpected revenue-sharing models that cut deep into profits.
• High withdrawal fees for players, damaging retention rates.

Warning Signs:

• The contract lacks clear details on profit-sharing percentages.
• No breakdown of additional costs (e.g., server fees, compliance fees).
• Vague or overly complex pricing structures.

How to Avoid It:

• Always read the contract carefully before signing.
• Choose providers with transparent, fixed pricing.
• Ask for a detailed cost breakdown before committing.

2. Rigged or Poor-Quality Games

Some shady white label providers integrate unlicensed, rigged, or pirated games, leading to:

• Unfair gaming algorithms, reducing player trust.
• Low-quality software that crashes frequently.
• Legal issues due to using unlicensed gaming content.

Warning Signs:

• No official partnerships with reputable game providers (e.g., Pragmatic Play, Evolution Gaming, NetEnt).
• No RNG (Random Number Generator) certification from independent auditors.
• Poor graphics, sound quality, or user experience.

How to Avoid It:

• Work with white label providers that use licensed games.
• Check if the provider has RNG certification from third-party auditors (e.g., eCOGRA, iTech Labs).
• Ask for a demo of the platform before making a decision.

3. Data Theft & Player Scams

Some unethical providers steal player databases or manipulate platform data for their own benefit. This includes:

• Selling customer data to third parties.
• Redirecting high-value players to their own platforms.
• Altering withdrawal processes to make cashouts difficult.

Warning Signs:

• The provider refuses to disclose how data is stored and secured.
• Delays or unexpected rejections of player withdrawals.
• No clear data protection policy in place.

How to Avoid It:

• Choose providers with strong data security measures (e.g., SSL encryption, GDPR compliance).
• Test the withdrawal process before launching.
• Ensure you own and control the player database.

4. Poor Customer Support & Platform Abandonment

Some providers disappear after launching the platform, leaving operators stranded with:

• No technical support for issues like downtime or bugs.
• No updates or security patches, making the platform vulnerable.
• No assistance with payment processing or compliance matters.

Warning Signs:

• Slow or unresponsive support even before signing the contract.
• No direct contact options, only generic emails.
• No clear SLA (Service Level Agreement) for ongoing maintenance.

How to Avoid It:

• Choose providers with 24/7 customer support and a dedicated account manager.
• Check client reviews and test their support responsiveness.
• Ensure the provider offers regular updates and maintenance.

How to Choose a Reliable White Label Provider?

To avoid scams, always check the following before signing up:

• Transparent Pricing: Ensure no hidden fees or unfair revenue-sharing terms.
• Game & Software Quality: Work only with platforms offering licensed, high-quality games.
• Data Security: Protect your player database with strong security measures.
• Reliable Support: Choose a provider with a solid track record and 24/7 assistance.

Conclusion

While white label solutions offer a fast and efficient way to enter the iGaming industry, choosing the wrong provider can lead to serious financial and legal risks. Scammers use hidden fees, rigged games, and data theft to exploit unsuspecting operators.

By staying informed and conducting thorough due diligence, you can avoid these scams and build a successful, secure, and profitable iGaming platform.

Looking for a trusted white label provider? GamingSoft’s GS Global White Label Solution tailored to your needs. Contact us today at [email protected] or visit www.gamingsoft.com to start your iGaming journey!

About GamingSoft
GamingSoft is a leading provider of online casino solutions, offering a comprehensive suite of services, including a white-label solution, API integration, payment solutions, game development, and more, to iGaming operators worldwide. With over years of experience, GamingSoft has earned a reputation for delivering innovative and reliable solutions, helping clients succeed in the competitive iGaming industry.