The first ancient "Olympics", athletic contests held between different Greek city-states and sometimes athletes from other cultures, took place for two reasons, in particular. First, the Greeks were highly competitive and, thus, sought opportunities to engage each other in contests that would bring glory to individuals and whole societies. Second, the Greeks were a very religious people, and the presentation of athletic competitions were considered to be favorable to their gods as well as a kind of reverence for the same.
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In ancient times, Greek societies held the Olympic games (as well as various other, similar athletic contests) for primarily religious reasons. Athletic contests were considered to be favored by the Greek gods; they were also offered as a kind of reverence for and homage to those same gods. Another motivation was at work, as well: the Greeks were a fiercely competitive people, and the Olympic games gave them the opportunity for individual and social glory.