The 2024 Paris Olympics: A Betting Bonanza for Sportsbooks
The 2024 Summer Olympics in Paris will be unlike any other. For the first time since legal gambling became widespread in the United States, sportsbooks and daily fantasy operators are gearing up for a major surge in wagering activity. The games, set to kick off on July 26th, promise to attract a significant influx of bets, particularly for popular sports like men’s and women’s basketball, soccer, and tennis.
Key Takeaways:
- Sportsbooks anticipate a betting boom: The Olympics come at a crucial time for sportsbooks, coinciding with the offseasons of major leagues like the NFL and NBA. The anticipation is high, with many expecting a significant increase in betting compared to the Tokyo Olympics.
- The impact might vary: While the Olympics are expected to be a boon for the industry, the impact might be less dramatic for larger operators like FanDuel and DraftKings compared to smaller players. This is mainly attributed to the large market share they already hold and the reliance on viewership.
- The Olympics are becoming a major betting event: With over 30 states now permitting some form of sports wagering, including mobile and online betting, the legal landscape for sports betting has drastically changed since the last Summer Games. This paves the way for a much larger potential audience for Olympic betting this year.
- Challenges remain: Despite the favorable conditions, there are still challenges to overcome. Time zone differences and limited betting options in some states due to regulations could potentially dampen the betting enthusiasm.
A Betting Landscape Transformed
The landscape for sports betting in the US has experienced a dramatic shift since the Supreme Court ruling in 2018, which paved the way for legal betting nationwide. The number of eligible bettors has skyrocketed, from 97 million in 2021 to a projected 164 million this year, according to the American Gaming Association. This signifies a massive increase in potential customers for operators looking to capitalize on the Olympic excitement.
However, the Olympic Games may not necessarily trigger the same betting frenzy observed with other popular sports in the US. Regulatory hurdles in some states might limit betting options to medal competitions, leaving some events untouched. Moreover, viewership for the Olympics in the US has declined in recent years, partly due to the challenging time zones of the Tokyo and Beijing Games, and the absence of fans due to the pandemic.
Although the six-hour time difference between Paris and the eastern US is more manageable than Tokyo’s 13-hour gap, prime-time Olympic events will not be broadcast live this year. The primary broadcast will be on NBC, with replays airing in prime time, and the entire Games available on Peacock, marking the first time the event will have significant streaming access. This shift could positively impact betting interest, but it remains to be seen how it will play out.
The Summer Surge
While challenges remain, many industry players view the Olympics as a valuable opportunity to boost engagement and betting during the typically slow summer months. The two-week competition period in Paris lands perfectly within the offseasons of major US sports leagues, creating a window of opportunity for operators to engage a wider audience.
The summer timing of the Games also minimizes competition for viewers’ attention. PrizePicks, a daily fantasy operator, learned from its experience with the Tokyo and Beijing Olympics that users prefer summer competitions. They are now expanding their Olympic event offerings in anticipation of increased user engagement during the Paris Games.
The picturesque backdrop of Paris and the possibility of watching many of the competitions live during daytime hours in the US are other factors expected to drive interest. The potential for showcasing breathtaking events like beach volleyball against the backdrop of the Eiffel Tower and equestrian competitions in the Gardens at Versailles is expected to create a captivating viewing experience.
The inclusion of popular sports like basketball, tennis, and soccer in the Olympics is another positive factor. Operators like FanDuel and Rush Street Interactive’s BetRivers anticipate these sports will be the top choices for betting. The growing popularity of women’s sports is also likely to be reflected in the betting patterns. FanDuel, for instance, witnessed around half of its betting handle at the Tokyo Olympics coming from basketball wagers, and anticipates similar trends for the Paris Games.
The Power of Patriotism
Further adding to the betting potential is the powerful element of patriotism which fuels Olympic fandom.
"Patriotism is No. 1 in the Olympics, and bettors love to back their country’s heroes no matter the event,” emphasizes Tim Whitehead, head of sportsbook at BetRivers.
This sense of national pride is anticipated to translate into an uptick in bets on the US team and potentially even on other countries.
"In the U.S., you see a melting pot of allegiances like where people not only support the U.S. but also have allegiances to their heritage in countries like Italy and Korea to Croatia and Brazil," explains Max Bichsel, North America executive vice president at Gambling.com Group. "So, some sportsbooks, depending on the states and demographics, will respond differently to the Olympics and international games in general," he adds.
As the 2024 Paris Olympics approach, the sports betting industry is poised for significant growth, fueled by a perfect storm of conditions that include increased accessibility, a wide array of betting options, and the enduring appeal of global sports competition. With a backdrop as stunning as Paris and the potential for capturing the attention of both ardent sports fans and casual viewers, the Olympics could offer a unique opportunity for both bettors and operators to experience the thrill of the Games in a whole new way.
