Based on how much Playtech paid for its share in Hard Rock Digital, the Seminole Tribe’s online gaming operation could be worth more than $4 billion.
That’s according to Eilers & Krejcik Gaming, an independent gambling consulting firm.
In its weekly newsletter, The EKG Line, EKG estimated UK-based Playtech bought 2% of HRD for $85 million. That would imply a $4.25 billion valuation. For reference, that valuation is $3.75 billion than EKG’s $500 million estimation for Rush Street Interactive, which is slowing its online sports betting operations to focus more on online casinos.
Why Playtech has such faith in Hard Rock Digital
This valuation suggests Playtech has immense faith in the online gaming market share HRD can carve out.
EKG theorizes Playtech was willing to pay such a large amount for a small stake for several reasons, including:
- Playtech wants to compete with other leading gambling tech providers — including Evolution and Light & Wonder — and it’s banking on HRD to partner with it for global expansion into Europe (Playtech is based in the United Kingdom) and Latin America.
- The Florida online casinos market, alone, would pay off the investment and then some. If Florida ever legalizes online casinos, Hard Rock would at minimum be a market leader. Or it may be the only option in the market, like it was briefly for sports betting. EKG estimates Florida would generate $3 billion in online casino annual gross gaming revenue.
“Hard Rock International has cemented itself as a marquee name worldwide,” Playtech CEO Mor Weizer said in a press release announcing the deal. “Not just in gambling, but more widely in entertainment. HRD will combine the strength of this global brand with a proven management team, some of whom we at Playtech have known for many years and believe to be among the strongest in the online gambling industry.”
Hard Rock Digital products currently live
Hard Rock Digital is part of Hard Rock International, owned by the Seminole Tribe. It runs online Hard Rock Bet sportsbooks in New Jersey, Arizona, Virginia, Tennessee, Indiana, Ohio and Iowa. It also has an online casino in New Jersey.