Develop a project from scratch or buy a turnkey solution? Or maybe go with a white-label solution and launch in just a few weeks? 

This almost Shakespearean dilemma has crossed the mind of every operator. Some chose one of the options above, while others decided not to enter the market at all. And the second group is much larger.

They don’t have a bad product; they just miscalculated. 

In this article, we explain what things cost, which option is best for startups and experienced operators, what you shouldn’t cut corners on, and give 4 tips to help optimize the budget.

What Is Included in iGaming Software Cost?

Online gambling software development isn’t cheap. Development costs can range from tens of thousands to several million dollars. 

The final price depends on several factors: the project’s scale and complexity, the chosen business model, for example, a white-label solution or a completely custom-built platform, and even the geographical location of the development team.

Developing your own game engine will cost a lot. 

It will be many times more expensive than even buying the most advanced ready-made licensed engine, such as Unity or Unreal Engine.

The game library is one of the main expense parts. Instead of creating games themselves, operators buy licenses from providers like NetEnt, Microgaming, and more. Another way to save time and money is through game aggregators, which offer game packages from different developers under a single contract.

To accept deposits and process withdrawals, you need to integrate various payment systems, including cards, e-wallets, and cryptocurrencies. You have to pay for that as well.

Expenses include a one-time integration fee ($5–20K) and transaction commissions. On average, commissions are higher in Europe (5–12%) than in Asia and Africa (4–6%). In addition, there are hidden costs; the integration of each provider will cost from $8–25K.

The most effective way is to use aggregators. B2B providers offer packages that combine dozens of payment methods into a single contract. This is cheaper at the start, although the commissions might be a little higher.

You also have to pay for the “nervous system” of the product — the backend system. This includes a CRM with user data, support tickets, KYC statuses, a CMS with website content, and analytics.

Player management allows you to manage player accounts, while KYC modules with mandatory identity verification are a requirement from regulators.

With player management, an operator can manage player accounts, set limits, and block suspicious accounts. This is one of those things that you’d better not skimp on.

Finally, the website has to be user-friendly, convenient, and intuitive. It must operate stably and respond to user commands quickly. This determines how many users will go through the sales funnel and move from the “guest” category to the “closed lead” category.

Quality design is expensive, but it creates a positive first impression and helps retain players. Consider frontend design not as an expense, but as your investment.

The cost of design and frontend development can range from $5,000 to $50,000 or more, depending on the complexity and degree of customization.

So, all expenses can be divided into two categories: one-time costs and ongoing costs.

The first category includes licensing, platform development, and launch costs. 

Ongoing costs include fees for server hosting and maintenance, license renewal, revenue share (if you’re using a white-label solution), salaries, marketing and player retention, continuous software updates, bug fixes, new feature implementation, data protection, and transaction commissions.

So, if one-time costs seem too high, rest assured, that’s only the tip of the iceberg. The truly high expenses are still ahead. Therefore, operators should have no illusions: running an online gambling business isn’t only profitable, it’s also extremely expensive.

iGaming Platform Pricing Models Explained

iGaming platform pricing models depend on the degree of customization, control, and initial investment an operator is willing to make. Operators can choose one of three main paths: White Label, Turnkey, and Custom Development.

White Label

This model offers a ready-made, “out-of-the-box” solution. The operator gets a platform with pre-integrated games, payment systems, and a gambling license from the provider. Essentially, it’s a “rental” of a platform that the operator brands as their own.

It seems like a panacea for startups. A White-label solution is significantly cheaper than custom development, it’s ready to go immediately, and the operator doesn’t even have to spend money on a license — the B2B provider already provides everything.

On the flip side, the operator doesn’t have full control over the design, functionality, and backend systems. They also have to pay a percentage of their revenue, which can range from 10 to 30%. Additionally, the operator is limited to the set of games and features offered by the provider.

Experienced operators can use a WL solution to expand their portfolio. But the low cost comes at a price: the inability to adapt the platform to specific requests and strategies and not as high a profit as a large operator could achieve.

For more details on white-label solutions, you can read our article What is White Label Gambling.

Turnkey

Turnkey works differently: the provider offers a complete software package that the operator buys and deploys on their own servers.

Unlike a white-label solution, the operator has to get an online gambling license, set up hosting, and maintain the platform themselves. In return, they get full control over the functionality and design.

This is still a good option for startups, as they have “power” over the product and can develop, scale, and add new modules if they wish. 

At the same time, a turnkey solution is more expensive and requires more time for setup, integration, and obtaining a license, so it won’t be possible to launch in two to three months. 

On top of that, there’s no need to pay a percentage of the revenue; all 100% of the profit goes to the founders.

Custom Development

In this case, operators will have to create a unique platform that is fully adapted to their needs, such as custom game development alongside backend and frontend work. This is the most expensive and complex option. 

Operators get complete control over the platform without any limitations and can change the product however they want. This might involve integrating AI, blockchain games, and other advanced technologies to stand out in a crowded market. You can link your project with blockchain content development, where crypto can be central to gameplay and transactions.

However, total control comes with high initial costs and long months of development. At the same time, there’s no guarantee that the huge budget will pay off; the project might lose momentum.

Most online gambling operators don’t follow just one of the paths listed above; they choose a hybrid approach. An operator can start with one solution and gradually expand it, adding new features or transitioning to another level of control.

For a startup, it’s more profitable to begin with a white-label solution for a quick launch, minimal costs, and to gain experience. As profit grows, it makes sense to switch to a turnkey solution. Based on the turnkey model, you can develop a custom module, for example, a unique bonus engine or CRM, to strengthen your competitive advantages.

A hybrid approach helps reduce risks. You don’t have to throw all your efforts into swallowing the whole cake at once. Instead, gradual investment allows you to test a business idea on the market with minimal costs.

Key Factors That Influence Development Costs

Almost every future founder doesn’t want to build something that’s already been done; everyone wants to create their own unique project that’s sure to blow up the market. 

That may be true, but custom development starts at hundreds of thousands of dollars and has “no ceiling.” There are several reasons for this:

• Numbers and Complexity of Games: The main factor affecting the budget is the complexity of the game. Simple 2D games can start from $15,000, while advanced 3D games with tournaments and jackpots can cost $250,000 or more. Games don’t necessarily have to be developed from scratch: integrating a ready-made title via API is much cheaper.
• Multi-Language and Multi-Currency Support: If the platform targets multiple markets, this increases the cost. Each new language and payment provider adds expenses for integration, testing, and fees. Planning localization from the start is cheaper: if done later, the cost can rise by 2–6%.
• Mobile Responsiveness and Native App Development: Most users come from mobile devices, so the mobile experience is critical. Supporting a website, iOS, and Android adds complexity and cost. You can save money by making the responsive-first website or by using a PWA (Progressive Web App), which lets users “install” the web app on their phone without going through app stores.
• Licensing and Jurisdiction Requirements: Costs vary a lot by country. But even if a jurisdiction offers a license for less than $20,000, don’t expect that to be the final price. You’ll need a budget for preparing documents, proving financial stability, setting up a company, and sometimes an office in the country. If the budget is small, it’s not worth getting into this.
• Technology Stack and Infrastructure: What the system runs on and where it’s hosted affects not only development speed but also monthly costs. Systems that support streaming, real-time analytics, and anti-fraud require more complex and expensive maintenance.

Hidden Costs You Should Not Overlook

Even if the upfront launch costs don’t scare you, remember the hidden expenses in the online gambling market.

Regulatory Compliance and Certification

Maintaining a license is an ongoing and expensive process. You’ll need regular audits, certification for each game (which depends on scope and jurisdiction), and legal consultations to stay up to date with changes in the law.

We know from our own experience: the market situation can change drastically in a single day.

Server Hosting, Bandwidth, and Security Layers

Many people underestimate infrastructure costs, especially when traffic grows. In reality, monthly expenses for hosting and security can range from $2,000 to $20,000 or more, depending on the size of the business and the level of protection.

Third-party integrations 

Many important features aren’t included in the base platform and need integration with external providers. These include automated KYC systems for player identity checks and PSPs, which charge a monthly fee or integration fee in addition to transaction commissions. Even if an operator works with game aggregators, they may have to pay a fixed monthly fee or a share of the revenue.

Customer Support Systems and Multilingual Staff

Quality support services are essential for keeping players. Staffing and software costs, like CRM systems and chatbots, can range from $5,000 to $15,000 per month. If you enter the international market, you’ll need multilingual staff, which is more expensive.

When planning a budget, it’s important to consider the total cost of ownership (TCO), not just the initial development expenses.

TCO includes:

• The cost of development.
• All hidden and ongoing expenses over the entire project lifecycle: licensing, marketing, security, updates, and staff salaries.

Ninety percent of startups fail because they ignore TCO. They focus on the initial cost, without understanding the full picture of expenses, and as a result, they can’t make informed decisions or plan their budget for the long term.

Budgeting Tips for iGaming Startups and Operators

Compare: how many people with a business mindset want to run an online gaming business, and how many actually reach profitability. It’s more like a pyramid with a wide base and a narrow top.

This doesn’t happen because of bad ideas. The reason is different: the “base of the pyramid” underestimated the overall costs.

4 Tips on How to Avoid These Mistakes

• Start with an MVP: For startups, it makes no sense to build a multimillion-dollar platform with a full set of features right away. Focus on the core functions needed for launch. Instead of 20 game providers, begin with two to three of the most popular ones. Test the business model and see how the market reacts with minimal risk. The white-label model is ideal for this, as it offers a ready-made solution at a relatively low price.
• Prioritize scalability and modularity: Even if you start with an MVP, it’s important that the platform architecture allows you to easily add new modules and features as you grow. Turnkey solutions provide the bare minimum, which can be expanded into something bigger.
• Allocate a budget for post-launch: Plan for expenses such as marketing and user acquisition, support and maintenance, and operational staff. Without support and marketing, even the most advanced platform won’t generate profit. Players simply won’t find out about your product.
• Don’t cut corners on security and regulatory compliance: Trying to save money here can cost you the entire business. Choose the legal path with a license, reliable security systems, and KYC and AML procedures. It may be costly at the start, but it will pay off in the long run.

MGL Solutions will help you find a jurisdiction that perfectly fits your project and your budget.

The table shows estimated budgets that only include development and licensing costs. They don’t take into account long-term expenses for marketing and staff.

In-House vs. B2B Provider: What’s More Cost-Efficient?

As mentioned above, in-house development is more expensive than white-label or turnkey solutions. However, it’s similar to buying versus renting a house. When you own the property, you don’t need to get anyone’s approval for your actions. Let’s figure out what’s actually more cost-efficient.

In-House Development

Building your own platform from scratch means hiring a team of developers, designers, and product specialists to design, create, and maintain a unique solution.

All this requires significant capital for hiring qualified specialists, purchasing equipment, and licensing the necessary software. Costs can easily exceed $500,000 and reach several million dollars.

This is not a quick process. Developing a complex iGaming platform from scratch can take one to two years.

For such a fast-changing industry as iGaming, two years is lost time. A new market may open and close during that period while you’re still developing. At the same time, you carry full responsibility for everything, from technical failures and bugs to legal compliance and cybersecurity. 

If something goes wrong, the entire burden falls on you. But this is a long-term game: you save on commissions, and after breaking even, every dollar earned stays with you.

Partnership with a B2B provider

B2B providers offer ready-made solutions such as WL and turnkey. The initial investment is much lower than with in-house development. White-label and turnkey models let you start a business with a budget from $20,000 to $300,000, making them ideal options for startups.

Launch can take from a few weeks to a few months, especially with WL solutions. Most components are already prepared and integrated, and the B2B provider takes on the risks, handles licensing, integrates games and PSPs, and ensures the platform is secure. B2B providers offer 24/7 technical support, so you don’t need to hire a large in-house team.

The downside: the operator pays either a percentage of revenue or a fixed monthly fee, which reduces long-term margins. With a turnkey solution, the operator doesn’t have to pay anything monthly — they buy a ready-made solution, but it’s more expensive than WL.

So when does in-house development make sense?

Despite all the challenges, in-house development makes sense when your business strategy is based on a unique product.

If the project has its own game engine, unique algorithms, or an innovative user experience, then full control over the code and intellectual property becomes critically important.

In-house development is worth it if you don’t want to depend on a B2B provider’s plans and prefer to adapt quickly to market changes.

It’s definitely worth it if you’re not a startup but a large operator with experience in online gambling. If you already have a player base and high revenue, moving to in-house will only increase long-term profit.

Wrapping Up

The cost of iGaming software is not just the purchase price. It’s made up of many factors: from licenses and payment system integration to customization and support. You can save on some of these by choosing a white-label or turnkey solution, while in some cases in-house development becomes very expensive but the only way to enter the market.

That’s why it’s so important to plan everything carefully and set a budget for the long term. Seeing the full picture, including the hidden pitfalls, will help you avoid unpleasant surprises and keep your business stable.

Doing this on your own is no easier than handling custom development with zero experience in online gambling, which is why it’s important to seek help from industry experts. 

Even if you’re not considering building a platform in-house but are looking for a B2B provider with a ready-made solution, MGL will help you find a reliable one.

Contact us so you don’t waste valuable time on trial and error, but enter the market with confidence.