Platform Fixed-Cost Model

Platform Fixed-Cost Model

iGaming Builders' 5% GGR model is more than just a pricing plan; it is a strategic business tool. It fosters a true partnership, provides unparalleled financial clarity and flexibility, and allows operators to channel all their resources and energy into revenue-generating activities, creating a powerful and sustainable competitive advantage. The fixed-cost model, structured as a flat 5% of an operator's Gross Gaming Revenue (GGR), provides profound business operational benefits and a significant competitive advantage over traditional pricing models. Here are the key benefits and advantages:

Business Operational Benefits

The operational benefits of the fixed-cost model are substantial.

Complete Cost Predictability and Financial Stability:

The primary benefit is the elimination of variable and unpredictable operational expenses. Operators know their single largest technology cost is a fixed 3% of their revenue. This makes financial planning, budgeting, and forecasting incredibly simple and accurate, allowing for stable, long-term business planning without fear of surprise fees or hidden charges.

Radical Simplification of Financial Management:

A flexible system for processing deposits and withdrawals, capable of integrating multiple payment providers to offer various methods like credit cards, e-wallets, cryptocurrencies, and bank transfers.

Elimination of Capital Expenditure (CapEx):

Operators are not required to make significant upfront investments in hardware, software licenses, or a dedicated development team to build and maintain the platform. The entire technology infrastructure is provided as a service, shifting the model from a capital-intensive one to a predictable operational expense (OpEx), which is far more accessible for new and growing operators.

Access to a Full-Stack, Enterprise-Grade Platform:

For a single revenue share percentage, operators get access to the entire iGaming Builders' ecosystem, including the core platform, CMS/web-builder, payment integrations, bonus engine, CRM, reporting, and support. This provides the functionality of a multi-million dollar proprietary platform for a fraction of the cost and complexity.

Competitive Advantages

The fixed-cost model ensures powerful competitive advantages for iGaming operators.

Perfect Alignment of Success:

The 5% GGR model creates a true partnership. iGaming Builders only succeeds when its operators succeed. This ensures the platform provider is highly motivated to continuously improve the product, offer excellent support, and help the operator grow their revenue, as their income is directly tied to it. This is a stark contrast to fixed-fee models where a vendor gets paid regardless of the operator's performance.

Superior Cash Flow and Profitability at Scale:

Unlike high-fixed-fee models that can cripple an operator during slow periods, the iGaming Builders model scales directly with revenue. During a launch phase or a slow month, the cost is low. As the operator's GGR grows, the platform cost grows proportionally, but the operator's margin on every additional dollar of revenue remains high. This structure promotes healthier cash flow and faster achievement of profitability.

Agility and Risk Mitigation:

The low barrier to entry and lack of long-term, heavy financial commitments allows operators to be more agile. They can test new markets, launch new brands, or pivot their strategy with minimal financial risk. If a venture is unsuccessful, they are not locked into crippling fixed costs, allowing them to fail fast and cheaply, a critical advantage in the dynamic iGaming industry.

Focus on Core Competencies:

By outsourcing the entire technology stack and its associated complexities to iGaming Builders, an operator's management team can focus 100% on what they do best: marketing, player acquisition, brand building, and strategic growth. They are not distracted by technical challenges, server maintenance, or software updates, allowing them to outmaneuver competitors who are bogged down by internal tech management.

A Powerful Tool for Sub-Operators & White Labels:

This model is exceptionally attractive for operators running a multitenancy platform or offering white-label solutions. They can provide their sub-operators with a clear, simple, and predictable cost structure (e.g., "the platform costs you 40% of your GGR"), making it far easier to recruit and manage partners compared to complex, multi-layered pricing schemes.