You might have noticed a large number of casinos with this on their website:
…Is owned by Direx NV: Oshi.io is operated by Direx N.V., a company registered and established under the laws of Curacao. Direx N.V. is licensed and regulated by Antillephone N.V.. Direx N.V.’s registration number is 131879 and its registered address is Wilhelminalaan 13, Willemstad, Curaçao. Nabelse Holdings Limited is a subsidiary of Direx N.V., registered in Cyprus with registered address Kimonos, 434 P.C. 3095, Limassol, Cyprus.
So who is Direx N.V.? They are the holding company which owns the gambling license issued by the Curaçao gambling authority that all SoftSwiss Whitelabel casinos use.
What’s a white label casino provider?
Put simply it’s a provider of all the services needed except for marketing in order to run a casino. The white label casino owners are responsible for marketing and building the casino brand.
Direx is a legal entity which owns the gambling license from Curaçao
SoftSwiss is the operations and technology owner that supports the services behind the licence owned by Direx.
Technically every casino brand on the SoftSwiss network is owned by this holding company Direx. In practice, each casino brand on the SoftSwiss Whitelabel network is separate from the next. Every brand competes against each other for business.
Direx N.V. (SoftSwiss) manages licensing requirements
different countries have different licensing requirements for gambling. For instance if you are a gambling operator in the UK, you need a UK licence and so on. Curaçao has a relatively relaxed licensing regime, which enables curse our licensed games to be used in a large number of countries.
The important point is that managing licensing is a lot of work and a very specialised area, which SoftSwiss look after very very well.
Once you’ve got a licence, you can now work with games providers. Some games providers don’t want their games used in certain territories and so depending on where you are that will also depend on what games you will see. All of this requires technical integration and systems to recognise your location, the transactions you’ve made and what your due if you win and what you pay if you lose.
All casinos have to have game integration. The benefit of a white label casino is that somebody else deals with it. In this case SoftSwiss. They do it really well and so lots of casinos around the Internet use them for integrating and accounting for games and so on.
Along with games you have people betting in games. It’s really important all of the accounting is done correctly. SoftSwiss are very good at large-scale transactional processing and so they deal with things like payment systems and money in/money out. It’s a hugely complex area and if you were to take this on as a stand-alone business, it would take years to get the systems right.
Most brands on the SoftSwiss network won’t have the money or the expertise to handle customer services. Requires 24 hour/7 day a week coverage and a lot of accumulated experience just to make it work properly. We may ditch and moan about customer services being awful, but people forget how much volume of work they do very successfully. We might hear about the one in 1000 cases where there might be a problem. The other 999 cases run smoothly. For an operator it makes sense to use SoftSwiss customer services for the day-to-day activity. If there’s a really complex case typically the brand will get involved. So with Oshi, if there is a serious problem we do get involved.
Aside: we have a protocol in place where the executive team see all of the customer services messages and all emails from them if they want to escalate something. Then we get involved.
Whitelabel casinos are designed so that you just turn everything on and it works. Most casinos on the SoftSwiss network will use the templates that are given to them by SoftSwiss. These templates are designed so they can be themed up in many different ways. A good example of very heavily themed casino would be https://www.playamo.com/
User experience Limitations
Back in December 2015 we had been using the SoftSwiss template, but it just wasn’t giving us the flexibility we needed to push forward with our ‘casino e-commerce’ mission i.e. integrating game search and a whole bunch of other features to make casino experience better. We then built our own software on top of the SoftSwiss system and that’s why our casino looks and feels different to most other SoftSwiss brands.
each brand has the freedom to decide what bonuses they offer. Some are obviously more generous than others, but if you’re too generous with bonuses you will run out of money and go out of business.
within the SoftSwiss network I would say most of the traffic and customers will originate from affiliate’s. These are entities who set up websites that rank well in search engines or whatever and brands like us advertise on their website. Brands like bitstarz do quite a lot of banner advertising. Each brand will have its own recipe for marketing itself. The main point is that SoftSwiss has nothing to do with any of this.
SoftSwiss as a white label provider take a small percentage of the revenue in return for offering all the services. I think every Whitelabel brand would agree that it’s a fair deal, in light of the huge amount of work they actually do. As a customer you might think casinos make a huge amount of money, but that’s not really the case.
Out of €100 that will be gambled on our site we will give back around €97. We then take out white label provider fees, bonus costs, game provider fees and were then left with around €0.75. From tha €0.75, we pay for the marketing, the site development and general business overhead. When it’s all paid for, were typically left with about €0.20 in actual profit from that original €100 in betting turnover. The way you make heavy money in casino is to have a scaled business.
Is there much difference between different SoftSwiss casinos?
Broadly, I would say… Not really. The vast majority of casinos will use the same customer services and obviously the same infrastructure. What differs is bonuses, the website look and feel and the management’s stance on customer friendliness.
Is Oshi very different?
From an operational point of view, not really. From the user experience point of view I would say so. We’ve got a user experience people seem to really love and its constantly improving. I think were also more customer friendly and open than most brands (this article is an example).
Summing it all up
Direx is just a holding company, SoftSwiss makes the network of casinos function, brand owners compete with each other for market share.