DraftKings’ third quarter earnings call spanned a variety of topics, some of which could prove to be intriguing propositions down the road. CEO Jason Robins spoke about election betting and an on-ramp to Florida’s sports betting market controlled exclusively by the Seminole Tribe’s Hard Rock Bet brand.
Is the Juice Worth the Squeeze?
US licensed sportsbooks are not allowed to offer presidential elections on their betting menus, but trading platforms like Polymarket and Kalshi are allowed, via a recent court ruling, to offer election betting contracts. That proved to be a boon to those platforms, as billions of dollars in contracts were purchased in the recent US presidential election.
The question arose as to whether DraftKings would pursue this avenue and offer it as an offshoot of their sports betting business through the legally approved contract method.
“I do think there could be a place for it outside of elections, but that’s really where the interest seems to be now from a customer demand side,” CEO Jason Robins said. “Definitely something we’re looking at in advance of the next presidential election, and potentially there will be an opportunity to look at something sooner.
“… We’ll have to see where it fits in the priority list, but it is something we’ll plan on looking at ahead of the next election for sure.”
Will Hard Rock Invite DraftKings to the Sunshine State?
The Seminole Tribe has cornered the market on sports betting in Florida through its Hard Rock Bet brand. Thanks to a compact with the state of Florida and signed off by the Department of the Interior, mobile sports betting relaunched in November 2023 after a false start in 2021 when a lower court ruled against the Seminoles sports betting exclusivity.
Mobile sports betting industry leaders, DraftKings and FanDuel, initially had an acrimonious relationship with tribal gaming nations, particularly in California, before they acquiesced and recognized tribal sovereignty in the Golden State. California is the holy grail of mobile sports betting, but it will happen at a time and place of the tribes’ choosing.
And although mobile sports betting has been active in Florida for just over a year, the Seminoles have stood alone and enjoyed the monopoly they have with their Hard Rock Bet brand. However, the door has been opened ajar as to the tribe entertaining the prospect of letting both industry leaders into the Sunshine State market, of which the Seminoles would get 40% the revenue.
Although competition would cut into their Hard Rock Bet profits, 40% of the profits from nationally recognized brands would likely generate enough additional revenue to surpass what the tribe is currently making through its monopoly.
The chairman of Hard Rock International, Jim Allen, said during an interview last month that bringing DraftKings and FanDuel into the fold could be worth exploring.
“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 said.
“Very encouraged to hear those comments,” Robins said. “We really have a ton of respect for Hard Rock and the Seminoles. Jim Allen’s done a fantastic job, and I enjoyed spending time with and getting to know him and his team. We’ll see how that all plays out. Obviously Florida is a big state, and it’s something we’d be very excited [for] if there was a path to be able to offer our product to customers there.
“But not really up to us. We’ll have to see what they want to do and how the discussions progress. Obviously, if there’s anything material, we’ll come talk about it, but at this point, I wouldn’t say that it’s very far along. There’s been a lot of speculation in the press, but really, I think it’s a pretty early stage.”
