Friday, October 2, 2009 11:55 AM

Gasps and tears greeted the announcement on Friday that Chicago had lost its bid to host the 2016 Olympic Summer Games, as the city went from favorite to also-ran in the multibillion-dollar Olympic sweepstakes.

Chicago had been a favorite on several wagering Web sites ahead of the International Olympic Committee's decision in Copenhagen. But the city of 3 million people did not make the cut in a contest with Rio de Janeiro, Madrid and Tokyo.

"Oh, how disappointing," said Judy Weniger, 63, a Chicago rooter visiting from Pennsylvania. "No one expected this to happen. It makes you want to cry."

Chicago sent a huge delegation of former Olympic athletes, business leaders and politicians to lobby for the Games, capped by personal appeals by U.S. President Barack Obama and first lady Michelle Obama on behalf of their hometown.

At a packed downtown plaza where people sported orange-themed T-shirts and signs backing Chicago's bid, a dreary pall fell over the crowd.

"Now our village elders can come back home and concentrate on solving the big problems we have here in Chicago," said Judy Brady, 64, who is retired.