Commercial sports betting companies like FanDuel and DraftKings appear to be working their way into a potentially lucrative new U.S. market.
Hard Rock International chairman and Seminole Gaming CEO Jim Allen hinted that the sovereign tribal nation and lone sports betting compact holder in Florida is open to bringing in outside operators.
“I would say whether it's FanDuel or whether it's DraftKings, we've actually developed a great relationship with them," Allen told CNBC during an interview on Tuesday at the Global Gaming Expo in Las Vegas. “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.”
Allen confirmed with CNBC that he met with FanDuel and DraftKings representatives at the expo. Both gaming companies declined to CNBC to comment on any potential deals with Hard Rock.
Sunshine State of gaming
Currently, the Seminole Tribe of Florida holds exclusive rights to offer online and retail sports betting and in-person casinos. The sovereign nation fought off voter initiative attempts by both FanDuel and DraftKings to get into the Sunshine State in 2021.
Seminole-run Hard Rock then launched Florida sports betting in late 2021 before a federal court decision halted wagering. That decision was later reversed and sports betting was running in late 2023.
In June, the U.S. Supreme Court denied a petition by West Flagler Associates for a writ of certiorari, locking in Hard Rock’s compact as the sole sports betting operator and ending federal involvement.
It looked like commercial operators were going to be kept out of the Sunshine State for good, but that could be changing based on Allen’s recent comments.
How much is being bet and what revenue Hard Rock is producing is unknown as the Seminole Tribe doesn’t have to release financial information because it’s a sovereign nation.
Major potential
News of a potential future partnership comes on the heels of last month’s investor meeting for Flutter Entertainment, the parent company of U.S. market-share leader FanDuel.
Amy Howe, the U.S. sportsbook’s CEO, included Florida with Texas and California when speaking about market expansion.
“Our team is gearing up for that next phase of growth around advocacy so that we can open up in new states, particularly the big (three) states in sports betting but also getting traction in iGaming,” Howe said.
FanDuel and DraftKings lead the New York market, which is currently the most lucrative in the U.S. Florida has a larger population than the Empire State and more than 20 professional and collegiate sports teams.
The Sunshine State also attracts massive numbers of tourists each year, opening up even more potential customers for operators.
