How Hard Rock got a sports betting monopoly in Florida
Author:
Zach Lutz
Reviewed by:
Published:
Oct 15, 2024
,
06:10 p.m.
ET
The world of sports betting in Florida is an intriguing one, filled with legal battles, arguments and power plays. The Seminole Tribe's Hard Rock Bet brand has emerged as the dominant force in Florida’s sports betting market, creating what some refer to as a monopoly. This is our second article – here’s the first – that dives into the journey of how sports betting was legalized in the state, the rise of Hard Rock Bet and the growing concerns around gambling addiction.
History of sports betting in Florida
Florida's journey toward legalized sports betting began in 2018 when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). This ruling allowed individual states to decide whether to legalize sports betting. While states like New Jersey and Pennsylvania moved quickly, Florida did not immediately follow suit. It wasn’t until 2021 that the first significant steps toward legalization occurred, largely due to negotiations between the state and the Seminole Tribe.
In 2021, Florida and the Seminole Tribe entered into a historic agreement known as the "2021 Gaming Compact." This deal granted the Seminole Tribe exclusive rights to operate both retail and online sports betting in the state. In return, the tribe agreed to pay the state $2.5 billion over the first five years, with revenue-sharing continuing until the agreement expires in 2051.
The deal was not without controversy. Critics argued that the compact effectively created a monopoly, and lawsuits were soon filed. One such case, West Flagler Associates, challenged the legality of the agreement, claiming it violated the Indian Gaming Regulatory Act. The lawsuits delayed the launch of sports betting, but by November 2021, Hard Rock Digital, operated by the Seminole Tribe, was live in Florida – albeit briefly. Just three weeks later, a U.S. Federal Judge ruled that the compact was unlawful, shutting down the sports betting market once again.
Hard Rock Bet’s monopoly in FL for sports betting
Despite legal setbacks, the Seminole Tribe’s monopoly persisted. In June 2023, the U.S. Court of Appeals for the D.C. Circuit reversed the 2021 ruling, opening the door for the tribe to re-launch sports betting. By November 2023, Hard Rock Bet was back in business, offering online and retail sports betting exclusively in Florida. While competitors like FanDuel and DraftKings attempted to break into the market through a failed 2021 ballot initiative, Hard Rock Bet remains the only legal sports betting platform in the state.
The Seminole Tribe's exclusive control over sports betting in Florida is likely to continue for the foreseeable future, thanks to the long-term agreement between the tribe and the state. However, Jim Allen, chairman of Hard Rock International, has hinted at the possibility of strategic partnerships with other major sportsbook operators. Whether this materializes or not remains to be seen, but for now, Hard Rock Bet holds a tight grip on the Florida sports betting scene.
Will other sportsbooks like FanDuel and DraftKings ever operate in Florida?
FanDuel and DraftKings, two of the largest sports betting platforms in the U.S., have made efforts to enter the Florida market but have been met with resistance. In 2021, both companies backed a ballot initiative aimed at allowing voters to decide whether mobile sports betting should be legalized across the state. Unfortunately for them, the initiative failed, and with the Seminole Tribe holding exclusive rights until 2051, it’s unclear when – or if – other sportsbooks will be able to operate in Florida.
Despite the legal hurdles, there is still hope for other platforms. The Seminole Tribe’s gaming compact allows for the possibility of revenue-sharing agreements with other sportsbook operators. This means that while Hard Rock Bet currently operates solo, there is room for partnerships down the road.
Allan recently made comments, surmising that Hard Rock has developed a “great relationship” with both FanDuel and DraftKings and that partnerships could bring long-term benefits.
Increasing gambling addiction figures in Florida
The rapid expansion of sports betting in Florida has brought with it a concerning rise in gambling addiction. According to the Florida Council on Compulsive Gambling, calls to gambling helplines have skyrocketed since the launch of sports betting apps. In just the first 45 days after Hard Rock Bet went live in December 2023, calls to addiction hotlines increased by 138%. With the convenience of mobile apps, individuals can now place bets from their phones at any time, exacerbating the issue for many.
Research also suggests that gambling is impacting other areas of life. A study from the Social Science Research Network found that individuals were investing less in stocks and diverting their money toward sports betting. The accessibility of mobile sports betting apps has created a perfect storm for gambling addiction, making it easier than ever for individuals to lose control.
Gambling addiction treatment options in Florida
For those struggling with gambling addiction, there are resources available to help. Birches Health, a leading provider of addiction treatment, offers specialized care for individuals dealing with gambling problems. Through personalized treatment plans and licensed professionals, Birches Health helps patients break free from the cycle of addiction.
One of the advantages of Birches Health is its online availability, allowing individuals to access treatment from the comfort of their homes. In fact, 90% of patients at Birches Health report an improved quality of life after seeking treatment. Whether you're looking to book an appointment, speak with a care specialist, or refer a friend, Birches Health is here to help:
To learn more, visit Birches Health Florida, or call 833-483-3838 to speak directly with the team.
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