Pay Per Head Sportsbook vs White Label Sportsbook

Pay Per Head Sportsbook vs White Label Sportsbook

Pay Per Head Sportsbook vs White Label SportsbookThere are several methods to open a sportsbook operation and each method has its pros and cons. According to what bookies like, the two most popular are the Pay Per Head and the White Label Solution. Thus, our Pay Per Head Sportsbook vs White Label Sportsbook will go over the pros and cons of each method.

A Pay Per Head Sportsbook and a White Label Sportsbook are two well-known alternatives to starting a sportsbook from scratch. The reason is because that they are much more affordable than starting a betting site from the ground up. For bookies or individuals thinking about opening a sportsbook, it often comes down to one of those two choices.

However, which is the best solution? A Pay Per head is much cheaper than a white label but it does have its limits. Then again, do you really want to share your profits with another company when you use a white label solution?

What is a Pay Per Head Sportsbook

What is a Pay Per Head SportsbookA sportsbook Pay Per Head service or PPH is basically renting sportsbook services for your players to use.  This means that a sportsbook pay per head provider will manage and keep track of all of your players’ wagers for a weekly fee.  The fee is charged on a per active player basis hence the name, pay per head or Pay Per Player.

In essence, a sportsbook pay per head lets you run your own sports betting website without having to deal with the headaches of running a sportsbook.  The only thing a bookie that runs his business thru a Sportsbook Pay Per Head has to worry about is acquiring and managing their players and the banking aspect of it.

Furthermore, bookies that uses a PPH do not have to worry about hiring a lines manager, office space, servers, software maintenance or infrastructure. This is because these are all part of their service.

For more information about a Pay Per Head Sportsbook Service, read this article about Understanding Pay Per Head.

Pros and Cons of a Sportsbook Pay Per Head

Pros of Using a Sportsbook Pay Per head

  • Launch Speed – It only takes a few minutes to launch a sportsbook
  • Cost – You only pay $2-$5 (PricePerPlayer.com Rates) a week for each active player. It is ideal for small to medium gambling operations.
  • Gambling Options – Depending on the PPH, you get to offer several gambling options as part of the cost per player. This usually includes live betting, casino, live casino and a racebook. Sometimes you may even find PPH that also have poker rooms and lottery as part of their gambling offerings.
  • Software and Updates – You do not have to pay for the sports betting software or license. In additions, all software updates are taken care of as part of the cost of using a PPH,

Cons of a Pay Per Head bookie

  • Cost – The cost per head is not ideal for large sportsbooks with over 3,000 players since you are paying per head. This is because with a PPH, bookies will eventually reach a cost of operation to profit ratio that is not as effective as other methods.
  • Gambling Options – You can only use the gambling options they offer
  • License – You are responsible for obtaining all of the licenses to operate legally.

Bookie Pay Per Head Service

What is a White Label Sportsbook

What is a White Label SportsbookA White Label Sportsbook lets bookies start a sportsbook by using the resources of an already existing sportsbook. However, the bookmaker gets to rebrand the sportsbook into his own by adding his logo and tweaking the betting website a bit.

In short, it is a out-of-the-box, ready-to-launch product to start a sportsbook operation. In comparison to starting a sportsbook from scratch, it is a cheaper and much faster method to open a sportsbook.

The Pros and Cons of a White Label Sportsbook

The Pros of a White Label Sportsbook

  • Launch Speed – It takes a few weeks to a few months to launch a sportsbook
  • Cost – The cost is much lower than starting a sportsbook from scratch. On average, starting a sportsbook from scratch will require a minimum of $500,000. However, with a White Label Sportsbook, you pay a monthly and a percentage of your revenue.
  • Gambling Options – You can offer all of the gambling options that the white label sportsbook offers without having to get a license for any of them.
  • License – You do not have to worry about getting a sports betting license as you will be using the license of the white label sportsbook.
  • Software and Updates – You do not have to pay for the sports betting software or license. In additions, all software updates are taken care of as part of the cost of using a PPH,

The Cons of a Using a White Label Sportsbook Solution

  • Launch Speed – In comparison to a Pay Per Head, it is slow as it only takes a few minutes to start taking bets.
  • Cost – The initial and monthly cost of operation is much higher than a Bookie PPH. Especially if you are a small to medium operation.
  • Gambling Options – You can offer all of the gambling options that the white label sportsbook offers without having to get a license for any of them. However, the monthly fee will increase and they still take a percentage of your revenue. You can only add the gambling options they offer.
  • Sports Betting Market – It takes

Conclusion of our Pay Per Head Sportsbook vs White Label Sportsbook Comparison

The conclusion for our Pay Per Head Sportsbook vs White Label Sportsbook comparison article is that it’s all about scale. If you are looking to create a small to medium bookmaking operation, a Sportsbook Pay Per Head is the ideal solution. Furthermore, it is probably the easiest way to open a sportsbook!

However, if you intend on having a large sportsbook operation and have deeper pockets, the White Label sportsbook is better. Ideally, you would want to start your Bookie Business with a Pay Per Head. Once get over 3,000 players, you would then want to switch to a white label sportsbook solution.

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