Hard Rock Looking for Strategic Partners
While Hard Rock is considering allowing FanDuel and DraftKings into the market, it will come at a cost. Reports are that the operators would receive a cut of the revenue from the industry leaders, ensuring its own revenue numbers don’t suffer.
Hard Rock has enjoyed success since launching in December 2023 but feels the market could be more profitable. DraftKings and FanDuel dominate the US sports betting market and would likely draw in more bettors, increasing the state’s and even Hard Rock’s revenue.
Hard Rock Risk Massive Misstep With Potential Deal
DraftKings and FanDuel have both had success growing markets across the country. Their national reputations and impressive platforms will attract Florida bettors, as well as those visiting the popular tourist destination.
While a deal has the potential to grow the Florida sports betting market significantly, Hard Rock will need to be careful about the percentage they will get. The two industry giants dominate every market they enter and could reduce Hard Rock’s market share from 100% to 5%. No amount of split would make up for that.
The Seminole-owned sportsbook is willing to take that risk because of its massive head start in the market. Many Floridians have already created an account with the sportsbook and may not be looking to change. While a good chunk will make the switch, Hard Rock believes enough of its base will remain.
Partnership Could Face Legal Challenges
Given the history of online sports betting in the state, any new partnerships could likely face legal challenges. Legal sports betting was delayed for around two years thanks to legal challenges from West Flagler Associates. The group represents card rooms in the state that want access to sports betting. The legal battle reached the US Supreme Court, but West Flager ultimately lost.
