Riot Games is set to permit leading esports teams in Valorant and League of Legends to secure sponsorships from gambling companies

Riot Games is cautiously allowing sponsorships from betting companies for premier League of Legends and Valorant esports teams across regions including North America, Europe, the Middle East, and Africa. This decision is part of Riot's ongoing strategic overhaul of its esports initiative, which commenced in 2023.

According to a comprehensive blog post by Riot's John Needham, president of publishing & esports, the decision primarily revolves around establishing a "sustainable ecosystem" for esports growth. Needham notes that sports betting has long been a desired sponsorship category among teams.

Riot defends the move by asserting that it has implemented "guardrails" to maintain "competitive integrity and the fan experience".

The blog highlights data from Sportradar, which revealed that $10.7 billion was wagered on LoL Esports and the Valorant Champions Tour last year. Importantly, 70% of all sports betting occurred in unregulated markets with unlicensed entities.

"We believe it's more prudent to engage with betting sponsorships thoughtfully and with adequate safeguards than to ignore potential risks to fans and game integrity," Needham stated.

Given the financial volatility in esports, particularly after the COVID-19 pandemic, Riot’s move is not entirely unexpected.

Despite anticipating challenges, the blog post admits that linking betting to gaming will spark debate.

"While sports betting doesn't appeal to everyone, and some fans hold strong opinions against it, betting activity is already present and will persist, regardless of our participation," Needham explained.

Feedback on the game's subreddit has been predominantly critical, though some see the decision as unavoidable.

The protective measures include supporting the creation of regulations, monitoring best practices, and implementing educational initiatives to ensure integrity in these events.

Riot asserts that this partnership model enhances the competitive integrity standards by improving Riot's oversight of betting activities to prevent policy violations.

Needham detailed a vetting and approval process for potential "sports betting" partners, emphasizing the use of official GRID esports data for betting operations and conducting team integrity checks.

Additionally, Riot plans to allocate proceeds from the sponsorship program to bolster the second-tier Valorant and League of Legends teams, promoting their "development and progress". This is the sole instance where Riot mentions its revenue from the program.

Moreover, betting advertisements will be absent from broadcasts and social media, and teams are prohibited from displaying betting partner logos on their uniforms.

"We believe engaging responsibly in this arena is preferable to allowing others to define it," Needham remarked.