Commercial
B2B2C
B2B2C (business-to-business-to-consumer)
Definition
B2B2C (business-to-business-to-consumer) is a model in which a supplier serves end customers through a partner business, so that the partner owns the brand and the customer relationship while the supplier provides, and often operates, the product behind it. In iGaming the classic forms are the white-label casino or sportsbook, where a licensed platform company runs the technology, licence, payments and operations for a brand partner such as a media group, affiliate or sports club; the lottery whose online games run on a supplier-operated iLottery platform; and the land-based casino group whose online brand runs on a technology partner's platform.
Revenue is usually shared, with the supplier taking a percentage of gaming revenue rather than a flat software fee. The model sits between pure B2B, where a supplier sells technology to an operator that runs the business, and B2C, where one company owns both the product and the customer.
Key takeaways
- B2B2C means a supplier reaches consumers through a partner's brand, with the partner owning the customer relationship.
- White-label casinos and sportsbooks are the commonest iGaming example: the platform holds the licence and runs operations behind the partner's brand.
- Commercial terms are usually a revenue share, so supplier and brand partner both depend on the brand's player value.
- In Great Britain, responsibility for compliance sits with the licence holder and cannot be passed to the brand partner.
Why it matters
B2B2C is how brands without gambling licences or technology enter the market, and how platform companies earn more than a software fee. The supplier contributes the white-label stack, licence, payments, risk and customer service; the partner contributes an audience and a brand. Each side is betting on the other, which is why contracts focus on revenue split, marketing commitments, minimum guarantees and, above all, who owns the customer data and database when the agreement ends.
The regulatory question is who answers for the customer. In Great Britain the Gambling Commission has said responsibility for compliance always sits with the licence holder, and its compliance work found operators passing customer interactions to white-label partners without effective oversight, lacking live access to customer records, unable to track spending across partners, running weak anti-money-laundering controls with individual partners and doing insufficient due diligence on partners' owners. B2B2C suppliers in regulated markets therefore act as full operators towards the regulator while presenting as a service provider to the brand.
For investors the model blurs the B2B and B2C split. Revenue from white-label partners is consumer gambling revenue, with B2C risk, booked by a company that markets itself as a supplier. The iGaming value chain course shows where B2B2C fits.
B2B2C vs B2B vs White Label
| B2B2C | B2B |
|---|---|
| In B2B2C the supplier stays involved in serving the consumer: it often holds the licence, runs payments, risk and support, and shares in gaming revenue. | In B2B the supplier sells or licenses technology or content to an operator, which runs the consumer business, holds the licence and owns the risk. |
A B2B2C supplier carries consumer-facing regulatory and revenue risk that a pure B2B supplier does not, which affects how it is licensed, valued and scrutinised.
| B2B2C | White Label |
|---|---|
| B2B2C is the general business model: any supplier reaching consumers through a partner's brand, including lottery, casino group and media partnerships. | A white label is a specific B2B2C product: a full gambling operation run under the supplier's licence and platform and branded for a partner. |
All white labels are B2B2C, but not all B2B2C arrangements are white labels. A lottery running iLottery on a supplier platform keeps its own licence, for example.
The bottom line
B2B2C is the supplier-behind-the-brand model: the partner brings the audience, the supplier brings the operation, and both share the revenue. In regulated gambling the licence holder keeps the compliance risk, whoever the customer thinks they are dealing with.
Sources
- Raising Standards for consumers, Compliance and Enforcement report 2019 to 2020: White label partnerships - Gambling Commission
- LCCP Condition 1.1.2: Responsibility for third parties, all licences - Gambling Commission
Frequently asked questions
What does B2B2C mean?
B2B2C stands for business-to-business-to-consumer. A company sells to consumers through another business: the partner provides the brand and customer relationship, and the supplier provides the product and often runs it. In iGaming, a typical example is a media brand launching an online casino that is run by a platform company under its licence.
What is the difference between B2B and B2B2C?
In B2B a supplier sells technology or services to another business, which then serves its own customers. In B2B2C the supplier remains involved in serving the end customer, often operating the product, holding the licence or sharing in consumer revenue, while the partner's brand faces the customer. The supplier's risk and economics are closer to an operator's.
Is a white label casino B2B2C?
Yes. A white label casino is the textbook B2B2C arrangement in iGaming: the platform provider supplies the licence, technology, payments and operations, and the brand partner supplies marketing and an audience. Revenue is shared between them. The licence holder remains responsible to the regulator for everything that happens on the site.
Who is responsible for compliance in a B2B2C model?
The licence holder. The UK Gambling Commission has said responsibility for compliance always sits with the licence holder, which must have safeguards and controls over its white-label partners, including due diligence, contractual clarity, oversight, training and the ability to terminate. The brand partner's role does not move regulatory accountability.