Sportsbooks and Daily Fantasy Operators Gear Up for Olympic Betting Surge

Sportsbooks and daily fantasy operators are anticipating a significant uptick in activity with the upcoming Summer Olympics in Paris, scheduled to commence on July 26. This will mark the first Olympic Games since widespread legalization of gambling across the U.S., and the gaming industry is poised for increased wagering, especially on popular sports such as men’s and women’s basketball, soccer, and tennis.

“The Olympics and gambling have traditionally observed each other from a distance. This year, we anticipate a convergence,” remarked Max Bichsel, North America executive vice president at Gambling.com Group.

The timing of these Olympic Games aligns favorably for sportsbooks, occurring during the offseasons of major betting leagues like the NFL and NBA. However, experts remain cautious about the extent of impact on gambling operators.

For industry giants like FanDuel and DraftKings, which collectively dominate about 80% of the U.S. online gambling market, the Olympic effect may be less pronounced compared to smaller competitors.

“When viewed annually for companies like DraftKings or FanDuel, the Olympics will likely have a relatively minor impact,” explained Jordan Bender, a senior equity analyst at Citizens JMP. “While positive, its magnitude will heavily hinge on viewership numbers.”

A representative from FanDuel, owned by Flutter, suggested that the Olympics may not significantly alter their sportsbook dynamics. DraftKings did not respond to requests for comment on their Olympic betting strategies.

Nevertheless, the anticipated surge in Olympics-related gambling underscores the robust growth of the U.S. gambling market in recent years.

Explosive Growth in Gambling

With over 30 states now permitting some form of sports wagering, including mobile and online betting, the landscape has evolved significantly since the last Summer Olympics. The 2021 Tokyo Olympics followed closely after a pivotal Supreme Court ruling that paved the way for nationwide betting legalization. In 2021, approximately 97 million American adults participated in betting activities, a number set to rise to 164 million this year, as reported by the American Gaming Association.

“Sports bettors are eager for new opportunities, and incremental events like the Olympics are poised to meet this demand,” noted Bender. “However, the core gambling audience—those engaged year-round in NFL, NBA, and NHL wagers—will remain crucial for sustained revenue.”

Despite these optimistic projections, the Olympics may not generate the same betting frenzy observed in other U.S. sports. Regulatory constraints in some states may limit betting options, potentially restricting wagers to medal competitions only.

Viewership Challenges and Opportunities

In recent years, viewership for the Olympics in the U.S. has faced hurdles, exacerbated by challenging time differences during the Tokyo 2021 and Beijing 2022 Games, as well as restrictions on fan attendance due to the pandemic.

The upcoming Paris Olympics will present a six-hour time difference from Eastern Time, offering more favorable viewing hours for American audiences compared to the 13-hour gap in Tokyo. Despite this, prime-time events will not be broadcast live this year, with NBC planning prime-time replays and comprehensive coverage on NBCUniversal’s Peacock, marking a significant debut for Olympic streaming presence.

Anticipating a Summer Surge

Despite potential viewership challenges, industry insiders view the Olympics as a strategic opportunity to bolster engagement and betting activity during the typically quieter summer months.

“The two-week spectacle in Paris arrives amid a seasonal lull in U.S. sports, presenting a prime window for betting operators,” explained Brandon Friedman, vice president of operations at PrizePicks, a daily fantasy platform. PrizePicks, which accommodates entry fees on competitions under federal law, is expanding its offerings for the Paris 2024 Olympics based on user preferences observed during previous summer Games.

Impact of Venue and Sport Selection

The picturesque backdrop of Paris, featuring iconic venues such as beach volleyball at the Eiffel Tower and equestrian events in the Gardens at Versailles, is expected to enhance viewer engagement.

“Spectacular settings will undoubtedly captivate audiences,” predicted Bichsel, highlighting the allure of these historic locations for both spectators and bettors alike.

Popular sports like basketball, tennis, and soccer are anticipated to drive significant betting volumes during the Summer Olympics. FanDuel and Rush Street Interactive’s sportsbooks, including BetRivers, are prepared for heightened activity, with basketball historically accounting for a substantial portion of Olympic betting handles.

Patriotism and Betting Dynamics

The patriotic fervor synonymous with the Olympics is expected to influence betting patterns, with U.S. bettors likely to support national athletes across various disciplines.

“Patriotism ranks supreme during the Olympics, prompting fans to rally behind their country’s heroes,” affirmed Tim Whitehead, head of sportsbook at BetRivers.

Additionally, international allegiances among U.S. demographics may lead to increased betting on athletes representing countries of heritage, adding further complexity to betting dynamics during the Games.

Conclusion

As the countdown to the Paris 2024 Olympics begins, sportsbooks and daily fantasy operators are poised to capitalize on this global sporting extravaganza, navigating through regulatory landscapes and viewer engagement challenges to maximize betting opportunities during the summer spectacle.