This is the time of year when business publications start to ask about and publish anonymous predictions for the new year. CNBC recently polled ten media executives about what they expected in 2022. One prediction, in particular, should raise the eyebrows of the sports radio industry.
An anonymous executive warns that all of the advertising money being thrown around by mobile sportsbooks is unsustainable. The executive predicts that 2022 will be the year we see the first sign of the bubble bursting, and one player in the space will either “go bankrupt or sell for peanuts.”
Legalizing sports betting has paid off for the states that have made the move. In October alone, America bet $7 billion on sports. That is a major explosion and sportsbooks have spent huge money in order to get a piece of that pie.
The executive that spoke to CNBC’s Alex Sherman described the landscape as “a glut” of sportsbook apps. Not all will be able to survive. Sherman listed BetMGM, Penn National Gaming, PointsBet, Wynn, Caesars amongst the potential to fall. If one of those companies does does sell, Sherman writes that industry leaders FanDuel and DraftKings would be the most likely buyers.
