The online sports betting industry is booming, with more businesses than ever looking to enter the market. If you're considering entering this space, one of the first decisions you'll need to make is whether to build your own sportsbook or buy a white label sportsbook solution. Both options have their pros and cons, but understanding the cost implications for 2025 will help guide your decision.

In this article, we’ll break down the costs associated with building versus buying a white label sportsbook, exploring the differences in financial investment, time, and resources. By the end, you’ll have a clear understanding of which option is best for your business.

What is a White Label Sportsbook?

Before diving into cost comparisons, it's important to understand what a white label sportsbook is. Essentially, a white label sportsbook is a ready-made, turnkey solution that allows businesses to operate a sportsbook under their brand without having to build everything from scratch. The platform, software, and infrastructure are all provided by a third-party provider, and the business simply customizes the interface and branding to suit their needs.

This model can be extremely attractive for entrepreneurs who want to focus on marketing, customer acquisition, and operations, rather than the technical aspects of developing and maintaining the sportsbook. However, if you're considering full control over your platform, opting for sports betting software development could be a good choice.

Why Consider Building a Sportsbook?

Building your own sportsbook from the ground up gives you full control over every aspect of the operation. You’ll own the technology, have the ability to customize features, and design a unique user experience. However, this level of customization comes at a price. Unlike using established sportsbook software providers, where you rely on a pre-built solution, building your own platform involves considerable investment in development, infrastructure, and ongoing support. With sportsbook software providers, the heavy lifting is already done for you, allowing you to focus on running and scaling your business without needing extensive technical resources.

Key Advantages of Building a Sportsbook

1. Full Control: You can tailor the platform to your exact needs, including customizing the UI, adding unique features, and integrating with specific data sources.
   
   

2. Scalability: With your own sportsbook, you can scale up operations as needed, adding more features and expanding to new markets without depending on a third-party provider.
   
   

3. Brand Identity: Having full control means you can make the sportsbook completely yours in terms of design, functionality, and experience.
   
   

Key Disadvantages of Building a Sportsbook

1. High Development Costs: Building a sportsbook requires substantial investment in software development, infrastructure, and licensing.
   
   

2. Ongoing Maintenance: You will need a dedicated team to handle bug fixes, updates, and security issues.
   
   

3. Time-Consuming: Building a sportsbook from scratch can take years of development, testing, and launching. Developing sports betting platforms involves various intricate stages, including coding, integration, and ensuring compliance.
   
   

Why Consider Buying a White Label Sportsbook?

On the flip side, purchasing a white label sportsbook solution is often a more affordable and quicker way to enter the market. With this option, you're essentially buying a pre-built solution that is ready to go live with minimal customization.

Key Advantages of Buying a White Label Sportsbook

1. Lower Upfront Costs: White label sportsbooks are far less expensive than building your own. You only pay for the licensing and customization, and the development costs are already covered.
   
   

2. Quick Launch: Since the platform is ready to go, you can launch your sportsbook much faster, sometimes within a few weeks.
   
   

3. Ongoing Support: Most white label providers offer 24/7 support, meaning you don't need to worry about handling technical issues.
   
   

Key Disadvantages of Buying a White Label Sportsbook

1. Less Control: While customization is possible, you're limited to the features provided by the third-party software provider.
   
   

2. Dependency on Provider: You rely on the third-party for updates, security patches, and any major changes to the platform.
   
   

3. Fees and Royalties: White label providers typically charge licensing fees and may take a cut of the profits.
   
   

Cost Comparison of Building vs. Buying a White Label Sportsbook

Let’s now dive into the cost comparison of building versus buying a sportsbook. These figures are approximations, and costs may vary based on your specific needs, region, and the providers you choose.

1. Upfront Costs

Building Your Own Sportsbook

• Software Development: Developing a custom sportsbook can cost anywhere from $500,000 to $1,500,000, depending on complexity and the features you want. The process of sports betting software development involves more than just coding—designing secure systems, integrating APIs, and ensuring proper compliance with gambling laws all contribute to the total cost.
  
  

• Infrastructure: Setting up servers, databases, and ensuring the scalability of your system could cost another $100,000 to $300,000.
  
  

• Licensing: Securing a gambling license could cost between $10,000 to $500,000 depending on the jurisdiction and type of license.
  
  

• Staffing: You will need developers, project managers, designers, and security experts. Staff costs can easily exceed $500,000 annually for a full-time team.
  
  

White Label Sportsbook

• Setup Fees: White label providers typically charge setup fees ranging from $20,000 to $100,000.
  
  

• Licensing: Some providers include the license in the package, while others charge separately. The cost here could range from $10,000 to $200,000.
  
  

• Ongoing Fees: White label solutions often charge monthly or annual fees, which can range from $5,000 to $25,000 per month, depending on the provider and the features included.
  
  

2. Customization Costs

Building Your Own Sportsbook

• Unlimited Customization: Since you're building everything from scratch, you have full control over customization. However, each unique feature (e.g., payment integrations, odds calculation systems, and customer support systems) comes with additional costs.
  
  

• Budget: Custom features and integrations could add anywhere from $50,000 to $200,000 to the development cost.
  
  

White Label Sportsbook

• Limited Customization: While you can adjust branding, colors, logos, and some aspects of the UI, the core features and functionality are fixed.
  
  

• Customization Fees: Providers often charge extra for advanced customization. Depending on the extent of changes, these fees could range from $5,000 to $50,000.
  
  

3. Operational Costs

Building Your Own Sportsbook

• Employee Salaries: You’ll need ongoing support from developers, customer service agents, marketing professionals, and security personnel, potentially costing $500,000+ per year.
  
  

• Server Maintenance: Expect to pay between $10,000 to $50,000 per year for maintaining your infrastructure and servers.
  
  

White Label Sportsbook

• Ongoing Licensing and Support Fees: These are typically part of the monthly or annual payments, ranging from $5,000 to $25,000.
  
  

• Maintenance: White label providers typically handle system maintenance, so you won’t incur extra costs in this area.
  
  

4. Time to Market

Building Your Own Sportsbook

• Development Timeline: Building a custom sportsbook can take anywhere from 12 months to 2+ years, depending on the complexity of the project. The sports betting platform development process requires numerous stages, including design, coding, testing, and deployment.
  
  

White Label Sportsbook

• Faster Launch: With a white label solution, you can launch your sportsbook in as little as 30 days, making this a much quicker option.
  
  

Factors to Consider in Your Decision

When deciding whether to build or buy a sportsbook, consider these key factors:

1. Budget: Do you have the financial resources to build a custom sportsbook? If not, a white label solution may be the best choice.
   
   

2. Time: How soon do you want to launch your sportsbook? White label solutions offer a much quicker turnaround.
   
   

3. Control: Do you need complete control over the platform, or are you okay with using a third-party solution with limited customization?
   
   

4. Scalability: Will your sportsbook need to scale quickly, and if so, will a white label provider be able to accommodate that?
   
   

Conclusion

Deciding between building and buying a white label sportsbook depends largely on your business goals, available resources, and timeline. If you’re looking for full control and are willing to invest a significant amount of time and money, building your own sportsbook may be the right choice. On the other hand, if you want a quicker, more affordable solution with ongoing support, purchasing a white label sportsbook is likely the way to go.

In 2025, the online sports betting market is growing fast, and choosing the right approach can set you up for success. Consider all the costs, timeframes, and long-term goals before making a decision.

FAQs

1. How long does it take to build a sportsbook?

Building a custom sportsbook can take anywhere from 12 months to 2+ years, depending on complexity and resources. The process requires careful planning and execution, including the development of a sports betting platform that meets the regulatory and technical requirements.

2. What is the cost of a white label sportsbook?

The cost for a white label sportsbook can range from $20,000 to $100,000 for setup, with ongoing fees ranging from $5,000 to $25,000 per month.

3. Are there ongoing costs with a white label sportsbook?

Yes, white label providers typically charge monthly or annual fees for maintenance, support, and updates.

4. Can I customize a white label sportsbook?

Yes, but the customization is typically limited to branding and some basic features. For more advanced customizations, additional costs may apply.

5. What licensing is needed to operate a sportsbook?

The type of license you need depends on your operating region. Gambling licenses can range from $10,000 to $500,000, depending on the jurisdiction.