On Friday, New York’s regulator shared that operators of sports betting apps in the state had taken $2.1 billion in bets in November. Two days earlier, Hard Rock CEO Jim Allen told CNBC’s Contessa Brewer that he believes it is “certainly possible” for Florida’s Hard Rock Bet to see more handle than all of New York’s sportsbooks combined.
“What’s unique about Florida is that it is a state of 21, 22 million people, but more importantly, the tax rate is much more competitive here,” he said. “The tax rate in New York is 50%, and frankly, companies like ours, we didn’t even pursue that because at a 50% tax rate, you honestly cannot make money.”
The Seminole Tribe, which owns Hard Rock Bet, entered into a revenue share agreement with the state of Florida through a 2021 compact, the legality of which is still being contested in court. Under the agreement, the tribe will pay the state 13.75% in revenue share and has agreed to pay $2.5 billion to the state over five years.
The Seminoles in November opened their Hard Rock Bet platform to some existing customers, and last week they expanded it to accept anyone in the state of Florida. Under the compact, the tribe is also allowed to offer craps and roulette in its casinos. It began a tiered rollout of those games last Thursday.