U.S. Legal Gambling Boom Expected to Drive Record Betting on Summer Olympics

Paris, France – The upcoming Summer Olympics in Paris, starting July 26, are poised to attract unprecedented levels of betting activity, thanks to the widespread legalization of gambling in the U.S. This will be the first Summer Olympics since legal sports betting became prevalent across the nation, and the gaming industry anticipates a surge in wagers on popular sports like basketball, soccer, and tennis.

Max Bichsel, North America executive vice president at Gambling.com Group, remarked on this significant shift, saying, “The Olympics and gambling, for decades, have looked at each other from afar. This year we’ll see them meld together.”

The timing of the Olympics is particularly favorable for sportsbooks, coinciding with the offseasons of major betting leagues like the NFL and NBA. However, the overall impact on gambling operators remains uncertain. Giants such as FanDuel and DraftKings, which dominate about 80% of the U.S. online gambling market, may see a less pronounced effect compared to smaller players.

Jordan Bender, a senior equity analyst at Citizens JMP, commented, “If you want to look at this from an annual perspective for a company like DraftKings or FanDuel, it’s still going to have a relatively minor impact. Obviously positive, but it’s not going to be as big as we might think, and a lot of it is going to be largely dependent on viewership.”

FanDuel, owned by Flutter, indicated that the Olympics might not significantly influence their sportsbook operations, while DraftKings did not respond to requests for comment.

The growth of legal gambling in the U.S. has been substantial. Over 30 states now permit some form of sports wagering, with many allowing mobile and online betting. This is a dramatic increase from the last Summer Olympics, held in Tokyo. In 2021, 97 million American adults could place a bet; this year, that number has risen to 164 million, according to the American Gaming Association.

Brandon Friedman, vice president of operations at PrizePicks, a daily fantasy operator, noted that their platform offered Olympic events during the Tokyo and Beijing games, with a preference among users for summer competitions. “As a result, we are leaning into the Paris 2024 Olympics with a wider offering for our members to enjoy than ever before,” Friedman said.

As the games approach, sportsbooks and fantasy operators are preparing for a significant uptick in engagement, hoping to capitalize on the increased interest and participation in Olympic betting.