Hard Rock Could Work with DraftKings, FanDuel in Florida

Posted on: October 8, 2024, 08:50h. 

Last updated on: October 9, 2024, 10:08h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Hard Rock International currently holds a monopoly on regulated sports betting in Florida, but Chairman Jim Allen said the tribal gaming giant could consider working with industry leaders DraftKings (NASDAQ: DKNG) and FanDuel in the state.

Florida Sports betting
A screenshot of the Hard Rock Sportsbook. Florida’s lone regulated sportsbook operator signaled a willingness to potentially work with DraftKings and FanDuel in the future. (Image: Hard Rock Sportsbook)

In an interview with CNBC’s Contessa Brewer from the Global Gaming Expo (G2E) in Las Vegas, Allen, who’s also the chief executive officer of Seminole Gaming, said he’s open to working with DraftKings and Flutter Entertainment’s (NYSE: FLUT) FanDuel in Florida at some point, noting he’s met with executives from both companies in recent days.

We do recognize that long term, some type of strategic relationship with some of the brands that really have marquee value could be helpful to both of us, and we are receptive to those conversations,” said Allen in the CNBC interview.

Following a lengthy legal battle, Hard Rock, the gaming arm of the Seminole Tribe, was granted a monopoly on regulated sports wagering in the third-largest state. The tribe’s sports betting compact was supported by Gov. Ron DeSantis (R), who asked Florida’s Supreme Court to reject challenges to the accord.

Florida Sports Betting Allure Undeniable

DraftKings and FanDuel were among the companies that had hoped to enter Florida before the United States Supreme Court declined to hear an appeal of the Florida high court’s ruling.

Those operators and others might not be giving up on the Sunshine State. For example, during Flutter’s recent investor day, FanDuel CEO Amy Howe mentioned the company continues monitoring sports betting developments in California, Texas, and Florida.

Commercial operators’ desire to access Florida’s sports betting market makes sense because the state isn’t just the third-largest in the country, it’s one of the fastest-growing as well.

As CNBC pointed out, Florida’s population exceeds that of New York, which is the top state for sports betting handle and revenue. Allen told the financial news network Hard Rock isn’t publishing sports wagering revenue figures because the Seminole Tribe is a sovereign nation.

DraftKings, FanDuel on Good Terms with Hard Rock

While Allen didn’t go into detail regarding how DraftKings, FanDuel, or any other commercial operator could enter Florida’s sports wagering market, he noted Hard Rock’s relationship with those two companies is solid.

“I would say whether it’s FanDuel or whether it’s DraftKings, we’ve actually developed a great relationship with them,” he told CNBC.

That’s crucial, particularly following the missteps committed by commercial gaming companies in California in 2022. Sportsbook operators ran afoul of California tribal gaming entities, sponsoring a sports betting ballot initiative that some of the state’s large tribes devoted significant capital to defeating. The tribes were successful in that effort and there’s belief that commercial operators have work to do to repair frayed ties with California tribes.