Hard Rock International presently dominates regulated sports betting in Florida, but Chairman Jim Allen mentioned that the tribal gaming powerhouse might explore collaboration with industry frontrunners DraftKings (NASDAQ: DKNG) and FanDuel in the region. 

In a CNBC interview with Contessa Brewer at the Global Gaming Expo (G2E) in Las Vegas, Allen, the CEO of Seminole Gaming, expressed willingness to cooperate with DraftKings and Flutter Entertainment's (NYSE: FLUT) FanDuel in Florida eventually, mentioning that he recently met with executives from both firms.

"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,” said Allen in the CNBC interview.

After an extended legal struggle, Hard Rock, the gaming division of the Seminole Tribe, received exclusive rights to regulated sports betting in the third-largest state. The sports betting compact of the tribe received backing from Gov. Ron DeSantis (R), who urged Florida’s Supreme Court to dismiss objections to the agreement. 

 

The Appeal of Sports Betting in Florida is Irrefutable 

DraftKings and FanDuel were among the firms that aimed to enter Florida prior to the United States Supreme Court's decision not to consider an appeal of the Florida Supreme Court’s decision. 

Those operators and others may not be abandoning the Sunshine State. For instance, at Flutter’s recent investor day, FanDuel CEO Amy Howe stated that the company is still keeping an eye on sports betting changes in California, Texas, and Florida. 

The interest of commercial operators in entering Florida's sports betting market is understandable, as the state is not only the third-largest in the nation but also one of the quickest-growing. 

According to CNBC, Florida's population surpasses that of New York, the leading state for sports betting revenue and handle. Allen informed the financial news channel that Hard Rock is not releasing sports betting revenue statistics due to the Seminole Tribe's status as a sovereign nation. 

 

DraftKings and FanDuel Maintain Positive Relationship with Hard Rock 

Although Allen did not elaborate on how DraftKings, FanDuel, or any other commercial entity might access Florida's sports betting market, he emphasized that Hard Rock has a strong partnership with both firms. 

“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 essential, especially after the errors made by commercial gaming firms in California in 2022. Sportsbook operators clashed with California tribal gaming groups, backing a sports betting ballot measure that several of the state's major tribes invested considerable resources to oppose. The tribes achieved success in that endeavor, and there is a belief that commercial operators need to mend their strained relationships with California tribes.