White Label, Turnkey Platform, or In-House Development: How Much Does It Cost to Launch?

Online sportsbook operators have three platform options: developing their own platform, using a ready-made platform from a provider under their own license, or choosing a white-label solution – operating under their own brand on third-party infrastructure, often using the provider’s license. There is no standardized cost data: estimates are published by platform developers themselves, and each includes a different set of expenses. This post brings together figures from several sources and breaks them down into three comparable components: initial setup fees, monthly fees, and revenue share.

In-House Development

🔵 €3-5 million in upfront costs, 12-18 months to launch the first product version, and €68,000-90,000 per month for maintenance.

🔵 Other estimates range from $500,000 to $3 million or more.

🔵 For a sportsbook operating in a single US state, development costs range from $300,000 to $600,000, with a timeline of 24-36 weeks.

🔵 There is no revenue-sharing fee, but the operator is responsible for trading, compliance, and infrastructure costs.

Turnkey Platform

🔴 Initial setup fees range from $15,000 to $50,000 or from $30,000 to $150,000, plus hosting costs.

🔴 Total platform expenses for the first year range from €500,000 to €1 million, with implementation taking up to six months.

🔴 Monthly fees range from €9,000 to €28,000.

🔴 Some pricing models charge an additional 10-25% of revenue, while others have no revenue-sharing component.

White Label

🔵 Initial setup fees range from $5,000 to $50,000, with monthly fees of $2,000-5,000.

🔵 Revenue-sharing fees based on GGR vary across providers: 10-25%, 15-30%, or 20-40%.

🔵 For growing operators, revenue-sharing payments typically exceed the cost of a turnkey platform without revenue sharing after 12–18 months, according to a company that sells such platforms.

🔵 The same company recommends securing the contractual right to transfer the player database before launch, in case the operator decides to switch platforms.

How Revenue Sharing Is Calculated

🔴 Revenue-sharing fees are calculated either as a percentage of GGR (player stakes minus winnings) or NGR (GGR minus bonuses), depending on the contract.

🔴 According to one company’s estimates, NGR represents 70-85% of GGR. Therefore, at the same 20% revenue-sharing rate, payments based on NGR are 15–30% lower.

🔴 One provider recommends checking the contract to determine which revenue metric is used and whether bonuses and voided bets are deducted.

When Each Model Becomes Cost-Effective

🔵 At lower revenue levels, white label is the cheapest option. According to our calculations, with a 20% revenue-sharing fee, it remains less expensive than a turnkey platform as long as monthly GGR does not exceed €45,000-140,000.

🔵 A turnkey platform becomes more cost-effective as revenue grows, provided the supplier charges a fixed fee without revenue sharing.

🔵 In-house development becomes more attractive at higher revenue levels because the operator does not share revenue and retains full control over pricing and data.

🔵 According to the same calculations, compared with a turnkey platform charging 10-25% of revenue, an operator begins saving money with an in-house platform at a monthly GGR of €160,000-810,000 – after recovering the €2-4.5 million difference in upfront investment.

Conclusion

The lower the initial platform cost, the greater the share of expenses incurred over the years of operation: revenue-sharing payments increase as the business grows. Therefore, a white-label solution makes sense for smaller operators looking to enter the market quickly and at a relatively low cost. A turnkey platform is better suited to operators with growing revenue and their own licenses. In-house development is more appropriate for large businesses seeking full control over their products, pricing, and data.