Posted on: October 5, 2023, 02:34h.
Last updated on: October 5, 2023, 02:34h.
Florida’s exclusive control of mobile sports wagering by Hard Rock International could limit revenue generation in the state, according to a sell-side analyst. JMP Securities analyst Jordan Bender forecasted that the market will generate $1.3 billion to $1.5 billion in revenue, compared to $2 billion if there were competitors. Bender compared the market to New York, which has a similar population and per capita income and is expected to generate $2 billion in sports wagering revenue. Other states, such as Connecticut, Oregon, and Rhode Island, have underperformed due to limited competition. Hard Rock’s sports betting app is available in several states, but it has not gained significant traction and its technology and product are not on par with top online companies in the space.
States that have gone the route of one to three licenses, including Oregon, Connecticut, and Rhode Island, have underperformed the average per-adult-spend across the United States with a core reason being less incentive to invest in players and the product with no competition,” observed Bender.
The operators of South Florida gaming venues are challenging the Seminole Tribe’s exclusive rights to sports wagering in the state. The Seminole Tribe has control over other areas, including proposed casino expansions that would distance new gaming venues from tribal lands. Several states, including California and Minnesota, do not permit sports betting due to dominance by tribal operators. On the other hand, Arizona and Colorado have thriving sports wagering settings because they allow for multiple competitors.
For States, Sports Betting Competition Is Good
Bender highlighted that narrow fields of sports wagering competitors have not benefitted states such as Connecticut, Oregon, and Rhode Island. Other states, like Washington and Wisconsin, allow sports betting but only at or near tribal casinos, which is flawed as the majority of sports wagers are placed online.
Likewise, several other states where the gaming industry is largely controlled by tribal operators, have either botched sports wagering or are missing out on it altogether. As just two examples, Washington and Wisconsin permit sports betting, but at or near tribal casinos — a flawed policy at a time when approximately 90% of sports wagers are placed on computers or mobile devices.
Due to the dominance of tribal casino interests, California and Minnesota do not permit sports betting at the moment, and it is unclear when that will change.
Hard Rock May Get Pass in Florida
Hard Rock Bet sports betting app by Hard Rock International is currently available in several states, but it has not gained significant traction due to its technology and product not being on par with top online companies in the industry. However, in its home state of Florida, this may not be an issue if competitors are not allowed into the market.
“From an operation standpoint, Hard Rock has not gained scale across the US and its technology and product are not on par with the top online companies in the space,” concluded the analyst.