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Seminole Gaming Dominates Florida’s Online Gambling

The historic Tropicana Las Vegas was demolished in a 22-second implosion, making way for a new $1.5 billion stadium for the Oakland A's. Despite its physical end, the Tropicana brand lives on through its online casino presence.
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Branimir Ivanov | Senior News Contributor

Updated: Oct 21, 2024

What's Florida's next iGaming giant?

Recent legal wins have cemented Seminole Gaming's dominance over regulated online gambling in Florida. Although the current environment leaves little room for other brands, it does not entirely shut out the possibility of competition. Seminole Gaming could set the terms for any other operators interested in entering the market, with Hard Rock International and Seminole Gaming CEO Jim Allen indicating a willingness to explore partnerships under specific conditions.

 

Current Status of Online Gambling in Florida

At present, Florida residents cannot legally play online casino games for real money. The sole regulated option is online sports betting through the Hard Rock Sportsbook app, operated by the Seminole Tribe. While legal challenges to Seminole Gaming's monopoly on sports betting have arisen, most have been settled in favor of the Tribe.

In June, the Supreme Court of the United States declined to review a ruling that favored Seminole Gaming, effectively concluding federal-level challenges. However, the door remains open for further legal actions in Florida courts, should opponents like West Flagler Associates choose to pursue them.

The Seminole Tribe's current gaming compact with the state and federal government does not yet cover online casino gaming. However, expectations are that the Tribe may seek to expand its compact to include this form of gambling. If successful, this would further solidify its control over Florida's online gambling landscape.

 

Hard Rock’s Potential Approach to a Competitive Market

While Hard Rock, a Seminole Gaming brand, is the sole operator of regulated online sports wagering in Florida, Jim Allen has hinted that other brands might eventually have a place in the state’s gambling market. Speaking with Contessa Brewer of CNBC, Allen emphasized that Hard Rock is open to discussions with potential competitors, citing a positive relationship with companies like DraftKings and FanDuel.

Allen's comments suggest that Hard Rock might consider a partnership model similar to how the current compact allows the Tribe to “license” online sports wagering. This could extend to online casino operations as well, where other brands could enter Florida's market under terms dictated by the Seminole Tribe.

Evidence from other US jurisdictions shows that a competitive market can generate higher revenues than a market with a single operator. For example, after Washington, D.C., allowed four online sportsbooks to operate throughout the District in August 2024, the total amount wagered jumped to nearly $40.6 million—up from just $8.1 million in August 2023 when only a single operator was available citywide.

This data suggests that a more open market in Florida could drive greater consumer engagement and higher revenue. However, such an environment could pose risks for Seminole Gaming, as competition might outperform Hard Rock’s offerings. Nevertheless, under a likely compact amendment, Seminole Gaming would stand to benefit from any partnership arrangement, as it would collect fees or a percentage of revenue from competing brands.

 

Possible Terms for Market Access

Should Hard Rock extend an invitation to other online casino brands like BetMGM or DraftKings, any deals would likely involve a combination of revenue-sharing agreements, market access fees, or both. These terms could create a win-win scenario for all parties. Brands like Caesars and FanDuel would gain access to Florida’s large market, while Seminole Gaming would secure a share of profits regardless of market dynamics.

However, despite these potential arrangements, Floridians should not expect new online casino options soon. The process of amending the gaming compact and any subsequent negotiations has yet to start, as confirmed by the Seminole Tribe. Moreover, any new compact would likely face legal challenges, meaning it could be years before additional regulated online casino apps become available in Florida.

Seminole Gaming’s recent legal victories have tightened its grip on Florida’s online gambling market, but potential partnerships could allow other brands to enter under terms set by the Tribe.

 

Conclusion

Seminole Gaming’s recent court victories have further solidified its dominant position in Florida’s online gambling landscape. While there is potential for other online casino brands to enter the market, they would do so on terms set by Seminole Gaming. With legal hurdles and negotiations still ahead, any expansion of online gambling options in Florida will be a slow process. In the meantime, brands interested in the Florida market must be prepared to pay Seminole Gaming’s price to compete.

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