Hard Rock’s Jim Allen Hints at Potential Partnerships with FanDuel and DraftKings in Florida

Florida’s sports betting landscape could see significant changes as Hard Rock International’s chairman, Jim Allen, expressed openness to partnerships with major sportsbook companies FanDuel and DraftKings. Allen, who also serves as the CEO of Seminole Gaming, hinted at the possibility of strategic collaborations with these companies despite Hard Rock currently holding exclusive rights to sports betting in the state.

Speaking at the Global Gaming Expo (G2E) in Las Vegas, Allen acknowledged that working with brands like FanDuel and DraftKings, which dominate the U.S. sports betting market, could be mutually beneficial. “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 said during an interview with CNBC. He further revealed that he had met with representatives from both companies during the expo, although FanDuel and DraftKings have declined to comment on the possibility of a partnership.

Seminole Tribe’s Exclusive Hold on Sports Betting

Currently, the Seminole Tribe holds exclusive rights to operate sports betting in Florida, following a 2021 compact that granted the tribe a monopoly on online and retail sports betting. This deal came after FanDuel, DraftKings, and Penn Entertainment spent significant resources in 2021 trying to get their own sports betting initiatives on the ballot, efforts that were ultimately unsuccessful. Despite these past battles, Allen’s comments indicate that a collaborative approach with commercial operators may now be on the table.

In late 2021, the Seminole Tribe launched sports betting in Florida through its Hard Rock brand. However, a federal court ruling temporarily halted operations, citing violations of the Indian Gaming Regulatory Act. The decision was later reversed, and sports betting resumed in late 2023. In June 2024, the U.S. Supreme Court denied a petition by West Flagler Associates, effectively solidifying the tribe’s exclusive rights to sports betting in the state.

Florida: A Lucrative Opportunity for Operators

Florida’s large population and its abundance of professional and collegiate sports teams make it an enticing market for sportsbook operators. The state is even more populous than New York, which currently generates the highest sports betting revenue in the U.S. Furthermore, Florida’s status as a major tourist destination increases its potential customer base, making it a prime target for companies like FanDuel and DraftKings.

FanDuel’s CEO, Amy Howe, has emphasized Florida’s importance as part of the company’s growth strategy. Speaking at Flutter Entertainment’s investor meeting last month, Howe identified Florida, along with California and Texas, as key markets for future expansion. Both FanDuel and DraftKings lead the New York sports betting market and are eager to replicate that success in Florida. “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 during the investor meeting.

Source:

“Hard Rock chairman opens the door to a FanDuel or DraftKings partnership in Florida“, cnbc.com, October 8, 2024