According to analysts, the compact agreement between Florida Governor Ron DeSantis and the Seminole Tribe could pave the way for the US’s largest retail and online sports betting industry.
The agreement, which will act as a sports betting gatekeeper and run retail online sportsbooks under the Hard Rock name, also needs to be approved by the state legislature, and legal challenges have already been filed.
If it overcomes the challenges, the state will join 26 others in the United States and Washington, DC, that have legalised controlled sports betting in some form. Twenty-two of those jurisdictions have already begun their operations.
Higher ceiling than any other
Dustin Gouker, a network analyst for PlayUSA.com, which includes PlayFL.com, said: “Assuming the industry launches with the current framework in place, there is little question that sports betting will drive a massive amount of revenue for the state.
“This is a unique design with no direct comparisons among markets that are already active. But with Florida’s large population, the brand recognition of Hard Rock, a framework that leaves room for more participants, and a reasonable revenue-sharing structure, Florida will have a higher ceiling than any other market to date.”
Analysts estimate that if the normal agreement were reached, Florida’s retail and online sportsbooks will produce between $8 billion and $12 billion per year, generating more than $1 billion in operator revenue.
Sports betting could bring in more than $125 million a year for the state, thanks to a 13.75 percent revenue share from tribal operations and a ten percent revenue share from pari-mutuels.
Eric Ramsey, analyst for PlayUSA.com and PlayFl.com said: “The structure in Florida won’t be quite as ideal for consumers as a truly open and competitive market, with a robust roster of operators competing vigorously to attract their attention.
“But unlike truly closed markets like New York or New Hampshire, the revenue-sharing structure leaves more room for the operator to create an appealing product and promote it. And Florida has so many positive attributes that the market should flourish.”
Florida, with its more than 20 million people, will comfortably overtake Illinois and Pennsylvania as the largest state to legalise and control sports betting.