Sportsbooks and daily fantasy operators are gearing up for a surge in activity during the upcoming Summer Olympics in Paris, scheduled to kick off on July 26. With the legalization of sports betting gaining traction across the United States, the gaming industry is bracing for an influx of wagers, especially on sports such as basketball, soccer, and tennis.
While the Olympics present a lucrative opportunity for sportsbooks during the offseason of major sports leagues like the NFL and NBA, the potential impact on industry giants like FanDuel and DraftKings might be more subdued. With these two platforms dominating around 80% of the U.S. online gambling market share, the Olympics may not significantly move the needle for them.
Jordan Bender, a senior equity analyst at Citizens JMP, suggests that while the Olympics will have a positive effect, its overall contribution to the bottom line of companies like DraftKings and FanDuel may be relatively minor. The viewer engagement levels will play a crucial role in determining the actual impact of the Summer Games on these gambling operators.
The anticipated rise in Olympic gambling activities underscores the tremendous growth of the sports betting market in recent years. More than 30 states now allow some form of sports wagering, with an increasing number of them permitting mobile and online betting options. The legal landscape for gambling in the U.S. has evolved significantly since the last Summer Olympics in Tokyo.
In 2021, around 97 million American adults had the opportunity to place bets, a number expected to rise to 164 million this year, according to the American Gaming Association. Incremental events like the Olympics provide additional avenues for sports bettors to participate in wagering activities, complementing the major leagues like the NFL, NBA, and NHL.
Despite the potential for increased betting interest during the Olympics, certain challenges exist that could limit the betting surge witnessed in other major sporting events. State regulations may restrict betting options on specific Olympic events, with wagers possibly limited to medal competitions only.
Moreover, viewership for the Olympics in the U.S. has faced obstacles in recent editions due to factors like unfavorable time differences, absence of live spectators, and pandemic-related restrictions. While the upcoming Paris Olympics may offer a more viewer-friendly time zone compared to previous editions, the absence of live prime-time events poses a challenge for bettors and sportsbooks alike.
For betting operators, the Olympics represent an opportunity to drive engagement and betting activity during the traditionally slower summer months. With major U.S. sports leagues in their offseason, the two weeks of Olympic competition in Paris offer a welcome boost for the industry.
Reputable daily fantasy operators like PrizePicks have recognized the appeal of summer competitions, with a focus on expanding offerings for members during the Paris 2024 Olympics. The unique backdrop of Paris, coupled with favorable viewing times for U.S. audiences, is expected to enhance engagement levels in the upcoming Summer Games.
The inclusion of popular sports such as basketball, tennis, and soccer, along with the growing interest in women’s sports, is poised to attract significant betting activity. Patriotism and national pride play a crucial role in Olympic fandom, translating into increased betting on athletes representing various countries.
While the Summer Olympics present both challenges and opportunities for sportsbooks and daily fantasy operators, the industry remains optimistic about the potential for growth and engagement during the upcoming games in Paris. By leveraging the unique sporting events, expanding offerings, and tapping into the spirit of national pride, gambling operators can capitalize on the excitement and popularity of the Olympics to enhance the overall betting experience for enthusiasts.