Sportsbooks and daily fantasy operators are gearing up for what is expected to be a significant bump in activity during the upcoming Summer Olympics in Paris. This major international sporting event, scheduled to kick off on July 26, will be the first Olympics to take place since the widespread legalization of gambling in the United States. Industry experts anticipate a surge in betting participation compared to the previous Summer Games in Tokyo, with a particular focus on popular sports such as basketball, soccer, and tennis.
Max Bichsel, the North America executive vice president at Gambling.com Group, emphasized the evolving relationship between the Olympics and the gambling industry. This year’s games are poised to bring these two worlds together in a more integrated manner. While the offseason of major betting leagues like the NFL and NBA provides a conducive environment for sportsbooks to attract more wagering activity, the overall impact on established players in the market such as FanDuel and DraftKings may be limited. According to Jordan Bender, a senior equity analyst at Citizens JMP, the effect on these giants is expected to be positive but relatively minor, heavily reliant on viewership metrics for success.
The anticipated growth in Olympics gambling reflects the broader expansion of the sports wagering market across the United States. With over 30 states now permitting some form of sports betting, including mobile and online options, the landscape has shifted significantly in recent years. The 2021 Olympics mark a significant transition since the Supreme Court decision that opened the door to legalized betting nationwide. The accessibility of betting opportunities has multiplied, with an estimated 164 million American adults now able to participate, compared to 97 million in 2021.
Challenges and Opportunities
Despite the increasing popularity of sports betting, the Olympics may present unique challenges in attracting significant wagering volumes. Stringent state regulations and restricted betting options for certain events could limit the overall betting surge experienced with other sports. The fluctuating viewership trends for the Olympics in the U.S., compounded by timezone discrepancies and pandemic-related restrictions on live attendance, may impact the betting dynamic. However, the introduction of extensive streaming coverage through NBCUniversal’s Peacock platform presents a new avenue for engagement and could enhance betting interest during the games.
Industry experts view the Olympics as a strategic opportunity to boost engagement and maintain interest during the typically slower summer months for sports. The diverse range of sporting disciplines showcased in Paris, along with iconic venues like the Eiffel Tower and Versailles Gardens, are expected to captivate audiences and drive participation. Daily fantasy operators like PrizePicks are leveraging the appeal of summer competitions to enhance user experiences and expand their offerings for the Paris 2024 Olympics.
Basketball, tennis, and soccer are anticipated to be the top sports for betting during the Summer Olympics, with a notable emphasis on women’s sports and national pride influencing betting behaviors. The strong patriotic fervor associated with the Olympics often translates into increased support for athletes representing their countries, fostering a sense of unity and collective enthusiasm. The melting pot of cultural allegiances in the U.S. further diversifies the betting landscape, with individuals backing their heritage alongside their national identities.
The convergence of the Summer Olympics and the gambling industry presents a dynamic landscape rich with opportunities and challenges. As sportsbooks and daily fantasy operators navigate this evolving terrain, adapting strategies to align with shifting consumer preferences and engagement patterns will be crucial in capitalizing on the potential growth and excitement surrounding this global sporting event.