Operators Expect Spike in Activity during the Summer Olympics

As the Summer Olympics in Paris loom, operators are preparing for a spike in betting activity. Set to be the first Summer Olympics since the pandemic, the event will be seen by millions of bettors.

As many new states launched legal betting since the previous edition of the games, operators are expecting record-breaking activity. Max Bichsel, EVP of North America at Gambling.com, said that gambling and the Olympics will no longer have to “look at each other from afar.” This year, however, the two will be melded together.

Beach volleyball in the foreground of the Eiffel Tower and Equestrian in the Gardens at Versailles will undoubtedly be the most spectacular venues in recent years.

Max Bichsel, EVP NA, Gambling.com

Reflecting the UK’s optimism about the event, US operators hope to capitalize on the Olympics, making the most out of the event before the regular leagues’ new seasons.

Jordan Bender, an analyst at Citizens JMP, told CNBC that the revenues from the Summer Olympics are going to attract a lot of hardcore gamblers who wager on all kinds of sports. He said that there is a lot of money to be made.

Additionally, the American Gaming Association pointed out that many more Americans will be able to legally wager on the Summer Olympics than ever before. For context, during the Tokyo Olympics, 97 million adults had access to legal betting. With more and more states launching regulated betting markets, this figure now stands at roughly 164 million.

Smaller Companies to Benefit the Most

However, for the biggest gambling companies, it is all business as usual. DraftKings and FanDuel, which control a significant share of the US betting market, are likely going to be less affected by the seasonal increase in bets than their smaller competitors.

FanDuel confirmed this, saying that it doesn’t expect the Olympics to have a noticeable impact on its results.

An additional thing to consider is that some states’ regulatory systems may prevent operators from freely offering wagers, forcing them to limit their offerings to bets on medal competitions.  

In addition, the time difference in Tokyo led to decreased viewership which may persist this year even though the games are set to take in Paris, which is only six hours ahead.

Despite these concerns, however, experts are still convinced that the Olympics will have an overall favorable effect on the betting sector, especially considering the lack of many major events during the summer months.

The patriotic element of the games is also expected to be a major driving factor.