Hard Rock CEO Open To Partnerships In Florida With DraftKings, FanDuel

Florida’s sports betting market has been a monopoly for Seminole Hard Rock casinos and the Hard Rock Bet app since first launching — amid ongoing legal disputes — in 2021. But Hard Rock International Chairman and Seminole Gaming CEO Jim Allen has now signaled interest in potential collaborations with other commercial sportsbooks, including DraftKings and FanDuel.

Talking to CNBC’s Contessa Brewer at the Global Gaming Expo in Las Vegas on Tuesday, Allen shared that Hard Rock is now open to partnering with the very operators it previously outmaneuvered.

The comments follow Hard Rock’s hard-fought victory in securing an exclusive tribal gaming compact in Florida.

The groundwork for Florida’s current sports betting monopoly was laid in 2021 when a coalition of prominent sportsbooks mounted a substantial effort to legalize sports betting across the state. However, the coalition’s efforts fell short as the Seminole Tribe, represented by Hard Rock, emerged victorious in obtaining exclusive rights through a tribal gaming compact. This compact, negotiated with Gov. Ron DeSantis, gave the tribe exclusive control over sports betting in exchange for revenue-sharing agreements with the state.

DraftKings, FanDuel ready to sign on?

Allen specifically acknowledged a willingness on the part of FanDuel to discuss the possibility of entering Florida, confirming that he had spoken with Amy Howe, FanDuel’s CEO, about a partnership. He noted, “I would say whether it’s FanDuel or whether it’s DraftKings, we’ve actually developed a great relationship with them.”

Allen emphasized that he had met with representatives from both DraftKings and FanDuel over the previous two 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,” he added.

The possibility of commercial sportsbooks entering Florida’s market through partnerships with Hard Rock raises the stakes for what is one of the most lucrative online gaming states in the U.S. Florida’s population is over 22 million, exceeding that of New York, which currently leads the nation in sports betting revenue. Additionally, Florida’s thriving sports scene, which includes more than 20 professional and Division I college teams across a variety of sports, makes it an especially attractive market for sports wagering operators.

At a recent investor event, FanDuel’s Howe emphasized her company’s strategic focus on three critical states: California, Florida, and New York. DraftKings and FanDuel, with their dominating positions in the U.S. betting market, have both long sought entry into Florida but have so far been unable to break through Hard Rock’s monopoly.

A long and winding road for legalization

Florida’s journey toward legal sports betting was marked by a series of legal challenges and political negotiations. After years of debate and lobbying, Gov. DeSantis signed a 30-year gaming compact with the Seminole Tribe in 2021.

That gave the tribe exclusive rights to operate sports betting in exchange for an agreement to share a portion of the revenue with the state — estimated at $2.5 billion over five years. While the compact initially faced legal opposition, it eventually overcame the hurdles, allowing the Seminole Tribe to proceed with launching its sports betting platform.

In December of last year, Hard Rock marked a significant milestone when it officially introduced sports betting at its Seminole casinos across Florida. The launch was part of a broader expansion that also saw the introduction of additional casino table games, signaling the beginning of what Allen called “a new chapter in Florida gaming.” However, despite the initial fanfare, Allen has remained tight-lipped about specific revenue figures from the tribe’s sports betting operations, citing the Seminole Tribe’s status as a sovereign nation.

Online casino too?

The prospect of commercial sportsbooks entering the Florida market through strategic alliances is not limited to sports betting.

As the conversation surrounding the legalization of online casinos gains momentum in the state, a partnership between Hard Rock and either DraftKings or FanDuel (or any other commercial operator) could extend into that digital realm. That would significantly enhance the revenue potential in the Sunshine State for any operator licensed there, as mobile casino gaming has generally proven more lucrative than sports wagering in the relatively few states where it is regulated.