How the white label system works under a license

White label in iGaming is when you run online casino/betting under your brand, but legally and technically rely on the platform and license of the provider (licensor). Outside, the player sees your brand, and "under the hood" - payments, games, KYC/AML, reporting and hosting is provided by a licensed partner. The model reduces the "time to launch," but requires a clear understanding of the boundaries of responsibility and risks.

Below is an analysis of the steps: who the participants are, how the license is "divided," where the players' money goes, how the economic model is built, what are the restrictions and how to check the provider before signing the contract.

1) Members and roles

White label provider (licensor)

Platform owner and licenses. Responsible for: compliance with the norms of the regulator, KYC/AML, payments (through its PSP/bank/EMI/custodian), connecting games, reporting, storing player funds according to the rules of safeguarding/escrow, security and hosting.

Brand Partner (you)

Front-line owner: marketing, traffic attraction, localization, promo, VIP management within the provider's policies. Sometimes - L1 support, content, CRM campaigns.

Content providers (studios/aggregators)

Give games through contracts and certified integrations with the platform.

Payment partners (PSP/bank/EMI/custodian, cryptocastodian)

Service deposits/outputs and ensure separation of client funds.

Regulator/ADR

The controlling body of the license and an independent authority for disputes.

2) What does it mean to "work under a provider's license"

White label does not "give" you a license. You become a trademark/sub-brand within the licensed perimeter of the provider:

The project is launched as a site/skin provider with a separate domain/subdomain included in the license registry (whitelisting domain).
All critical functions (KYC/AML, payments, safeguarding, anti-fraud, audit) are performed by the provider or its authorized suppliers.
You agree to follow house rules/license policies: marketing, bonuses, anti-laundering requirements, limits, RG procedures.
In a dispute with a player, the licensor remains the ultimate responsible to the regulator.

3) Money flows and funds storage

Player deposits go to the segregated client accounts of the provider (bank/EMI) or custodial wallets (with crypto).

Conclusions are initiated on behalf of the licensor; threshold amounts can go through escrow.

Revenue (GGR/Net Gaming Revenue) is distributed under the contract: revenue share and/or fixed fees.

Jurisdiction taxes/fees are paid by the licensor; your portion is paid after withholding taxes, payment expenses, content costs, and operating fees.

4) Economy: what makes up your unit economy

Revenue Share (RS): 30-60% NGR to a partner depending on the volume/market/portfolio of games.

Payment costs: PSP commission, anti-fraud/chargebacks, FX.

Content Fies: Fix/Variable Bet for Games (sometimes included in RS).

Platform: monthly platform fee + domain/certificate/storage fees.

Support/CRM: L1/L2 can be charged separately.

Taxes/regulatory fees: often on the side of the provider, but reflected in your share.

Important: RS is always counted from NGR (GGR minus bonuses/jackpots/commissions/taxes according to the contract). Fix the calculation method and payment calendar in the contract.

5) What remains with you and what the provider takes

Function	Provider (licensor)	Partner (you)
License, compliance, reporting	+	—
KYC/AML/Antifraud	+	- (you can initiate checks in CRM)
Payments, safeguarding/escrow	+	—
Game Content and Integrations	+	—
Hosting/security/logs	+	—
Marketing/Traffic/Affiliates	—	+ (within policies)
Localization, content management	-/partially	+
Support	L2/L3	L1 (by SLA) or given to the provider
Promos and bonuses	Policies/Limits	Set up campaigns within frames

6) White label technical architecture

Core platform: player/balance accounting, wallets, bonus engine, reporting.

CMS/Frontend: brand theme (skin), localizations, A/B options.

Aggregator Hub: a single point for studios (slots/live/virtual machines).

Payments Hub: PSP, anti-fraud, limits, holds, currencies/crypto.

Compliance Layer: KYC/SoF/SoW, sanctions/PEP, RG tools, action log.

Analytics/BI: NGR/Retention dashboards/clusters, exports for affiliates.

Security: WAF, DDoS, 2FA/SSO, encryption, logs (immutable).

7) Regulatory restrictions and geo-rules

Legal geo is determined by the provider's license. You cannot market/accept players from forbidden countries.

Marketing rules: restrictions on creativity, age filters, responsible advertising.

RG/affordability: deposit limits, self-exclusion, timeouts, prohibition of "trigger" promos in vulnerable groups.

Data and privacy: storage and processing according to the rules of jurisdiction (GDPR and local laws).

8) Advantages and compromises of white label

Pros:

Quick start (weeks/couple of months)
immediately "package" PSP, games, KYC, reporting;
Less legal and IT burden
24/7 support from an experienced team.

Trade-offs:

Less flexibility (restricted by license policies)
revenue share and fixes reduce margins;
you depend on the roadmap and the provider's priorities;
migrating to your own license requires a separate project and approvals.

9) Risks and how to minimize them

A single license for all: problems for one brand can affect the perimeter (tightening rules, audit).

Mitigate: register an SLA/right to "isolate risks," monitor the provider's portfolio.

Dependence on PSP/provider integrations: Limits/waivers hit your conversions.

Mitigate: alternate payment methods, alternative cash desks in the provider pool.

Promo and UX restrictions: Not all features are available on request.

Mitigate: agree on roadmap/brand exceptions in the appendix to the contract.

NGR transparency: controversial allocation of expenses in the calculation of revshars.

Mitigate: detailed reporting pack, audit right, test reconciliations.

10) Due diligence provider: checklist

License and compliance

License numbers and types, list of allowed geo.
ADR/complaint procedure, regulatory reports.
KYC/AML/RG policies, timelines and SLAs.

Engineering and safety

Uptime, RTO/RPO, DDoS/WAF, encryption, logs.
Pentests/ISO/SOC2 (if any), access management.

Payments and Finance

List of PSP/EMI/custodians, currencies/crypto, limits.
Safeguarding/segregated/escrow are publicly described.

Content and CRM

Pool of game providers, live studios, exclusives.
Bonus engine, segmentation, triggers, constraints.

Economics and Reporting

NGR/GGR formula, deduction list, payment fees.
Partner payment calendar, currency, rate, delays.
Partner Audit/Reconciliation Right.

Right and operating conditions

Procedures for approving creatives, affiliates.
Domain/mirror/application rules.
Termination and migration conditions (data export, players, wallets).

11) Frequent Questions (FAQs)

Is it possible to accept players from a country that the provider does not have on the list?

No, it isn't. This is a violation of the license and the risk of blocking/fines.

Who owns the player base and data?

Usually - licensor as data controller; partner - processor/joint controller. Record in the DPA that upon termination you receive impersonal analytics and transferable data in accordance with the law.

Can I connect my PSP?

Sometimes - through the provider and its compliance. Direct connection is rarely possible in a white label.

Is there a path to your own license?

Yes: Agree in advance the option brand upgrade/" graduation "with the migration plan (domain, data, balance, content, PSP).

12) Red flags when white label is selected

No direct license references/confirmations, "PNG badges."

Opaque NGR formula and "optional" deduction list.

There are no safeguarding/escrow policies and no PSP/EMI names.

No KYC/AML/RG reports, weak SLA for payments.

No data export and no migration plan.

"Market anywhere, we'll cover" is the route to regulatory problems.

13) Algorithm for starting a project on a white label

1. Compare providers by license/geo/content/PSP/economics.

2. Request demo and reporting pack, NGR/payout test reports.

3. Agree on a contract: formulas, SLA, geo, RG/marketing policies, migration plan.

4. Assembling the front and localizations, importing content/banners, setting up bonuses.

5. Creatives and affiliates - through the pre-approval provider.

6. Soft-launch with test deposits/outputs and KYC/RG control cases.

7. Go-live and weekly reporting/metrics reconciliations.

White label under license is a quick way to enter the market and "share" the provider's mature operational practices: payments, KYC/AML, auditing, gaming, security. But speed and readiness "out of the box" are paid for by limited flexibility and share of income. The key to success is a transparent contract (NGR, SLA, RG), a proven licensor with an understandable infrastructure and a pre-agreed growth or migration path. If the provider is transparent under license, safeguarding, PSP and reporting, you get a chance to concentrate on the main thing: product, marketing and retention.