Published on: October 8, 2024, 08:50h.
Last updated on: October 8, 2024, 08:50h.
Hard Rock International currently has a monopoly on regulated sports betting in Florida, but Chairman Jim Allen stated that the tribal gaming giant could potentially collaborate with industry leaders DraftKings (NASDAQ: DKNG) and FanDuel in the state in the future.
During an interview with CNBC’s Contessa Brewer at the Global Gaming Expo (G2E) in Las Vegas, Allen, also the CEO of Seminole Gaming, expressed his openness to collaborating with DraftKings and Flutter Entertainment’s (NYSE: FLUT) FanDuel in Florida at some point, mentioning that he has met with executives from both companies recently.
Allen mentioned in the CNBC interview that “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.”
After a lengthy legal battle, Hard Rock, the gaming division of the Seminole Tribe, obtained a monopoly on regulated sports betting in the third-largest state. The tribe’s sports betting contract was supported by Gov. Ron DeSantis (R), who urged Florida’s Supreme Court to reject challenges to the agreement.
Florida Sports Betting Growing Interest
DraftKings and FanDuel were among the companies that were hoping to enter Florida before the United States Supreme Court declined to hear an appeal of the Florida high court’s decision.
These operators and others may not be giving up on the Sunshine State. For example, during Flutter’s recent investor day, FanDuel CEO Amy Howe mentioned that the company continues to monitor sports betting developments in California, Texas, and Florida.
Commercial operators’ desire to tap into Florida’s sports betting market is understandable as the state is not only the third-largest in the country but also one of the fastest-growing.
As highlighted by CNBC, Florida’s population surpasses that of New York, the leading state in sports betting handle and revenue. Allen informed the financial news network that Hard Rock is not disclosing sports wagering revenue figures because the Seminole Tribe is a sovereign nation.
DraftKings, FanDuel Positive Relations with Hard Rock
While Allen did not go into details about how DraftKings, FanDuel, or any other commercial operator could enter Florida’s sports betting market, he mentioned that Hard Rock’s relationship with those two companies is strong.
“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 crucial, especially following the missteps made by commercial gaming companies in California in 2022. Sportsbook operators clashed with California tribal gaming entities by sponsoring a sports betting ballot initiative that some of the state’s major tribes spent significant resources opposing. The tribes succeeded in that endeavor, and there is a belief that commercial operators need to mend ties with California tribes.