The question ("Why is the crowd at the capitol so fascinated about the hunger games?") can be answered in a few different ways.
The novel, The Hunger Games, portrays a Dystopian government which controls its people (the districts) through fear. While the Capitol defines their way of thinking as Utopian, many of the districts outside of District One (the controlling district) tend to disagree.
The crowds at the games can be explained in the following ways:
1. The scene is reminiscent of the public hangings and decapitations of the past. People are simply morbidly curious about death. The people know that the Games will bring death.
2. All of the people are also proud of their own district. Each wants to see their own district succeed in the Games and, therefore, are there to support their tribute.
3. Lastly, each of the districts are, basically, isolated from the other districts. The Games is a place where people from all of the districts can come together and see how the others are able to exist and survive.
The Capitol is the one place where the Hunger Games is shown as an entertainment for all and the people who live within the Capitol have no worry of being chosen, in fact they can rejoice for celebration whenever the Hunger Games is reannounced. They view this horrendous killing as entertainment nothing more.
They are so facinated because they are wondering who will be picked and the fact that if that person is a good contestant then they could bring a lot of goods to the district and to the people. If someone is not the strongst (younger, weaker, smaller) then they will not have as good of a chance to win all the prizes. District 12 has not won that many times so they are wondering if this year will be the lucky one.