Hard Rock Could Work with DraftKings, FanDuel in Florida
Hard Rock International presently dominates the regulated sports betting market in Florida, yet Chairman Jim Allen mentioned that the tribal gaming powerhouse might explore collaboration with industry leaders DraftKings (NASDAQ: DKNG) and FanDuel in the region.
In a conversation with CNBC’s Contessa Brewer at the Global Gaming Expo (G2E) in Las Vegas, Allen, the chief executive officer of Seminole Gaming, expressed his willingness to collaborate with DraftKings and FanDuel, a subsidiary of Flutter Entertainment (NYSE: FLUT), in Florida eventually, mentioning he has recently met with leaders from both firms.
"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.
After an extended legal fight, Hard Rock, the gaming division of the Seminole Tribe, was awarded a monopoly on regulated sports betting in the third-largest state. The sports betting agreement of the tribe received backing from Gov. Ron DeSantis (R), who urged Florida’s Supreme Court to dismiss objections to the deal.
The Appeal of Sports Betting in Florida is Unquestionable
DraftKings and FanDuel were among the firms that aimed to penetrate Florida prior to the U.S. Supreme Court's decision to not review an appeal of the ruling from the Florida Supreme Court.
Those operators and others may not be surrendering their efforts in the Sunshine State. For instance, at Flutter’s recent investor day, FanDuel CEO Amy Howe noted that the company is still keeping an eye on sports betting changes in California, Texas, and Florida.
It’s logical for commercial operators to want to enter Florida’s sports betting market, as the state is not only the third-largest in the nation but also among the fastest-growing.
As noted by CNBC, Florida's population surpasses New York's, which leads the states in sports betting handle and revenue. Allen informed the financial news outlet that Hard Rock is not releasing figures for sports betting revenue due to the Seminole Tribe's status as a sovereign nation.
DraftKings, FanDuel Maintaining Positive Relationship with Hard Rock
Although Allen did not elaborate on how DraftKings, FanDuel, or any other commercial operators might enter the sports betting market in Florida, he emphasized that Hard Rock maintains a strong relationship with those two firms.
“I would say whether it’s FanDuel or whether it’s DraftKings, we’ve actually developed a great relationship with them,” he told CNBC.
This is essential, especially after the errors made by gaming companies in California in 2022. Sportsbook operators found themselves at odds with California tribal gaming organizations, backing a sports betting ballot measure that several of the state's major tribes invested considerable resources in opposing. The tribes achieved success in that endeavor, and it is believed that commercial operators need to mend strained relationships with California tribes.
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