Will Florida Sports Betting Eventually Expand?

Could the Florida sports betting market be headed for expansion? Hard Rock Chairman Jim Allen apparently believes it is possible.

In a recent CNBC interview with Contessa Brewer, Allen was asked about partnering with known brands such as FanDuel and DraftKings to expand online sports betting in Florida. His answer is illuminating.

“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,” he explained (h/t Legal Sports Report’s Matthew Waters). “I don’t think we’ve ever stated that we wouldn’t work with some of the other companies, whether it be Caesars, BetMGM, DraftKings or FanDuel. We’ve always stated that we’d be receptive to that conversation.”

These sentiments seemingly fly against the Florida sports betting monopoly currently in place. But do Allen’s comments signal a potential change?

The Seminole Tribes Retains Exclusive Rights to Florida Sports Betting

As things currently stand, the Seminole Tribe has exclusive control over Florida sports betting operations. They negotiated that exclusivity as part of their decades-long gaming compact with The Sunshine State. The terms of this agreement have since been challenged, but after multiple years of litigation Florida sportsbooks operated by the Seminoles are back up and running.

Still, the current setup does place a market cap on revenue. Florida sportsbooks are only accessible at Seminole Tribe casinos. That is why Allen’s view is important. Hard Rock operates Florida sportsbooks in partnership with the Seminole Tribe.

The same goes for their Florida online sports betting app. Hard Rock helps operate the Florida sports betting site—which, following years of litigation, can be accessed by anyone in the state rather than strictly on tribal grounds. This feature has remained a noted point of contention. Opposing sides argue that it violates the spirit of the gaming compact. This agreement states that Florida sports betting is legal on Seminole property.

However, the Seminoles argue that their online Florida sports betting app is run by servers on tribal ground. That, by their logic, means the Hard Rock betting app is an extension of tribal property.

While this interpretation isn’t officially the only one, the Supreme Court of the United States effectively upheld it earlier this year when they refused to hear the case filed back in 2021 that challenged the legality of Seminole Tribe sports betting. This is all to say: Partnering with other online sportsbooks in the United States would represent a big shift. But what does that even look like? And is it allowed?

What Would a Potential Partnership Between the Seminole Tribe and FanDuel or DraftKings Look Like?

At first glance, this seems like a scenario that grants FanDuel, DraftKings and other sportsbooks the opportunity to operate in Florida. That is somewhat accurate. But flat-out adding independent online sportsbooks to the fold goes against the exclusivity clause.

To that end, the operative word you will see and hear is “partnership.” As Waters writes on the subject:

“The 2021 compact allows the Seminole Indians to partner with other brands in return for a cut of the revenue. Allen told the Naples News in December 2023 he was talking to 16 of the state’s 32 pari-mutuel operators concerning sports betting revenue sharing. The compact dictates the Seminole would keep 40 percent of revenue, while the marketing partner would keep 60 percent. Allen told LSR in April that discussions concerning a revenue-sharing framework with other operators were premature without knowing the final court outcome, but that it was certainly a possibility.”

Effectively, other online sportsbooks in Florida would be operating as subsidiaries of the Seminole Tribe. And as Allen noted, the reason this option wasn’t explored sooner or more urgently is because the fate of Florida sports betting was tied up in litigation.

That is no longer the case. In turn, this should free up Hard Rock Bet and the Seminole Tribe to expand their reach. Sure, some entities may challenge any deals. But a precedent is already set. Any agreement the Seminoles strike is likely to hold up.

Why Would the Seminole Tribe Give Up Florida Sports Betting Exclusivity?

The answer to this question is not actually complicated. For starters, the Seminoles would not be forfeiting exclusivity. Legal sportsbooks in Florida would not exist without their backing. Any operator would be required to pay them what amounts to a 40 percent commission.

There is still the question of why the Seminoles need such partnerships. That is a little bit more complicated. After all, their Florida sports betting app online is accessible to anyone inside the state. The breadth of their market would not technically change.

This has more to do with brand recognition. FanDuel, BetMGM, DraftKings, Caesars, etc. have a larger collective reach and more of a built-in customer base when it comes to online sports betting. There are those in Florida more likely to place wagers when one of their names is associated with an app.

On top of that, this opens the door to geotracking flexibility. FanDuel and DraftKings users could technically place wagers on a Florida sports betting app while outside The Sunshine State itself.

In fact, partnerships may be more questionable on the end of the operators. Will FanDuel and Draftkings, among others, want to cede 40 percent of their profits just to enter Florida? Most definitely.

This will be an iffier proposition in other states. But Florida, much like sports betting in New York, is a top-tier market. Online sportsbooks in the USA are willing to make more concessions to access that client base.

So really, when put in these terms, the expansion of Florida sports betting isn’t a matter of it. Instead, it feels like a matter of when.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: