Not sure how this helps. Olympic events already have relative rating systems that ranks all the participant: pretty complicated and sport dependent systems that determine qualification for the games and competition amongst all the competitors at the games. The problem how to have separate competitions for different groups of participants when there isn't a universally shared agreement on who should be in which group.

If you have a relative skill rating system, then there's no need to split competitors into groups. But if you insist, then you can split them based on skill ratings (define a rating range for beginner, intermediate, advanced, etc). And for games with one-on-one matchups, sampling from a gaussian centered on each player's skill rating is good enough.