Despite enjoying a sports betting monopoly in Florida, Hard Rock International is open to working with FanDuel and DraftKings.
The Seminole tribe and its gaming arm, Hard Rock, won a lengthy legal battle to secure exclusive sports betting rights in the third-largest state. However, recent revelations from the tribal gaming giant’s Chairman, Jim Allen, confirm that Hard Rock doesn't plan to have the whole cake to itself.
In an interview with CNBC, Allen confirmed that he recently met with executives from DraftKings and FanDuel and hopes to work with them.
“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,”
Governor Ron DeSantis supported Hard Rock during the legal battle for monopoly and asked the Supreme court to reject challenges to Florida’s High Court ruling. So, observers may find it surprising that Allen is extending a hand to its two biggest challengers at the court.
Apparently, Hard Rock’s plan from the onset was to negotiate a deal from a position of strength with commercial operators. Such a proposal will be more sustainable for the tribal gaming arm, whose ability to provide 100% sports betting coverage in Florida isn’t guaranteed.
Florida is one of the fastest-growing states, with a population bigger than New York. If Hard Rock hopes to be the decisive sports betting arm for the long term, it must show strength and competency. An easy way to do that is to partner with industry behemoths.
DraftKings and FanDuel will likely accept Hard Rock's proposal. FanDuel CEO Amy Howe already hinted to that effect, recently mentioning Florida as a state of interest in Flutter’s investor day.
Allen confirmed in the interview that Hard Rock has a solid relationship with FanDuel and DraftKings. This statement is a welcome development, especially after the infamous sports betting initiative clash between tribal gaming entities and commercial operators. While the tribes had a favorable ruling against the operators-sponsored initiative, there were concerns that the relationships from both sides had broken quite significantly.
“I would say whether it’s FanDuel or whether it’s DraftKings, we’ve actually developed a great relationship with them,” Allen mentioned to CNBC.