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I just watched LeBron James play in the Olympic basketball gold medal game earlier this afternoon so this most definitely is not the case anymore
We saw professional players enter the Olympics in the ‘70s and of course the biggest surge was in the ‘80s. Why? The US wanted to dominate the Olympics against the USSR. You mention basketball, they don’t get paid by the NBA or anyone else. US stars will get bonuses for participating from their major sponsors like Nike, and of course if they do well, Gerri g their name associated with a big Olympic win is great for branding contracts. Other stars may get paid per-medal won.
So no, they don’t get paid like a professional player does, but they do make money. I’ll also offer that the big name stars are going to be making the real contract money. That’s rare for the rest of the competitors. Famously, medals have ended up on eBay because the winners needed cash.
I think I misunderstood your initial statement as well, to be fair. I took that to mean "people who play professionally and make money from it aren't allowed" and not what I now believe you meant which is "people who play in the Olympics are not paid to do so".
Which makes sense, it seems strange to bar a professional basketball player from the Olympics simply because that's how they make their paycheck. I misunderstood the initial statement and didn't think about it long enough to notice before making my reply.