Seminoles’ Deal Means Gambling Expansion For Hard Rock Empire

If you’re a gambler, look for more Hard Rock casinos – and more universal players’ benefits – in the coming years.

That’s because the Seminole Tribe of Florida last week announced a massive purchase of the Hard Rock brand, which it has partially owned since 2007.

Hard Rock International, based in Orlando, now has casino and hotel-casino rights in the western U.S., as well as in several key international markets. (The exception is that BREF HR, LLC, will keep the Hard Rock Hotel and Casino in Las Vegas.) The Western and international properties were separated from the Hard Rock International’s portfolio more than three decades ago.

“The questions of who controls what … that confusion has now been eliminated and more importantly it gives us more ability to enhance customer service and brand standards on a more consistent level globally,” said Jim Allen, Hard Rock International’s chairman.

“The tribe has always looked at the ownership of Hard Rock from a viewpoint of growing the value of the company and the brand,” Allen said. “It’s more of a long-term strategic financial planning investment.”

The acquisition brings the Hard Rock portfolio to 27 hotels and 15 casinos. A spokeswoman said the company currently has more than 20 active projects in the pipeline, with a goal of reaching 100 hotels by 2020. They also have about 170 Hard Rock Cafes in more than 70 countries.

“If we wanted to unify, say, our players’ club card, there were locations in Oklahoma, Sioux City Vancouver, Lake Tahoe … that weren’t under our standards and were free to do whatever they like,” Allen said.

But equally important, Allen said, is what he called “unprecedented growth opportunities.”

“It also allows us in places like Australia and Brazil to expand the Hard Rock brand in a gaming environment,” he said.

Allen also cited hotels in Abu Dhabi, Atlanta, Berlin and Dubai as examples of “the more we continue to grow in the hotel sector, we would want to compliment it with some gaming.”

Allen also added that management plans a 2017 deal with Pitbull to be this year’s “signature artist of the year” globally, and that association with a popular artist of today keeps the Hard Rock brand moving forward. Hard Rock International also acquired certain memorabilia, bringing the total to more than 81,000 pieces globally.

“I think with any brand that’s 40-plus years old, it’s a fair question,” he said, with regard to the brand’s relevance today. But he noted similar partnerships with Rihanna and Shakira. “… having those artists demonstrates the brand is alive and well.”

“There’s a lot of great rock and roll bands but clearly we’re concentrating on today’s music and today’s artists.”

That said, Allen, who is from New Jersey, noted that the world’s No. 1 tour belonged to Bruce Springsteen.

Allen spoke by phone Tuesday morning while testifying at one of three major Florida gambling lawsuits: the tribe’s agreement with the state to operate blackjack and other table games has expired, and the Seminoles filed suit, saying the state has not negotiated in good faith.

State officials want the federal judge to order the tribe to remove the blackjack tables that are still in use. Allen testified Monday that nearly 3,700 jobs would be lost if blackjack is removed.

Meanwhile, court cases on whether racetrack poker rooms can offer “designated player” games such as Three-Card poker, as well as whether a northwest Florida county can offer slots, are also pending.

Before paying $965 million to buy Hard Rock International, the Florida-based Seminoles had a partnership with the company, hence the two casinos named “Seminole Hard Rock Hotel & Casino,” in Hollywood and Tampa.