- If estimate is accurate, Hard Rock Digital would be one of the largest standalone iGaming/OSB companies.
- Implies valuation has rapidly doubled and Florida could eventually allow iGaming.
Hard Rock Digital, the interactive gaming and sports wagering arm of the Seminole Tribe’s Hard Rock International, could be worth as much as $8 billion.
In a new note, Eilers & Krejcik Gaming (EKG) based that estimate on an end-of-2024 report from Playtech, which said the small stake in Hard Rock Digital it purchased in 2023 for $83 million nearly doubled in value to $163 million. At the time of that purchase, EKG estimated Hard Rock Digital’s valuation to be $4 billion.
There may be some credibility in the $8 billion approximation because in 2024, Hard Rock Sportsbook — aided in large part by its Florida monopoly — notched gross gaming revenue (GGR) of $881. That made it the fourth-largest US operator by that metric, trailing only FanDuel, DraftKings and BetMGM.
Hard Rock Digital Valuation Could Signal Florida iGaming
EKG noted that its $8 billion appraisal of Hard Rock Digital accounts for the iGaming factor, implying that, as the research firm said last month, Florida is likely to be the only state to add internet casinos through 2027. If that happens, the tribal gaming giant would have a monopoly over that lucrative form of wagering in the third-largest state.
The bullish upgrade appears to assume Florida online casino in the next couple of years. That’s in line with our own projections which estimate a go-live date in 4Q26,” observes EKG.
Their analysis indicates that if approved, Florida’s online casino market could generate $2.3 billion in yearly GGR by 2029. Add in $1.3 billion in online sports betting GGR, and the figure swells to $3.6 billion, meaning that by 2029, it’s possible Florida will account for 10% or more of US online betting GGR.
Those estimates are likely based on Hard Rock maintaining its sports betting monopoly in Florida, though the operator has signaled some willingness to potentially work with DraftKings and FanDuel in the state in the future.
At $8 Billion, Hard Rock Digital Is a Giant
Under the Indian Gaming Regulatory Act (IGRA) and various tribal sovereignty laws, tribal gaming companies must retain full control of their brick-and-mortar gaming assets, meaning they cannot sell equity in casinos to outside investors.
Owing to those facts, the following exercise is merely performative, but if Hard Rock Digital is worth $8 billion and it commenced an initial public offering(IPO) at that multiple, it’d likely be one of the most valuable pure play online gaming equities, possibly trailing only DraftKings in market value. At $8 billion, Hard Rock Digital’s market capitalization would be more than triple that of Rush Street Interactive’s.
And if Hard Rock Digital can command an $8 billion valuation, it’d be worth more than several land-based casino operators, including Caesars Entertainment.
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