Top esports teams for Valorant and League of Legends will now be permitted to have sponsorships from gambling companies, according to Riot Games

Riot Games is making a strategic move to allow sponsorship from betting companies for top-tier League of Legends and Valorant esports teams across North America, Europe, the Middle East, and Africa in a "responsible" manner.

This decision aligns with Riot's broader rethink of its esports strategies, initiated in 2023.

In a detailed blog post, John Needham, Riot's president of publishing & esports, explained that the initiative aims to create a "sustainable ecosystem" for the esports industry. Teams have long been advocating for the inclusion of sports betting as a sponsorship category.

Riot assured that measures would be in place to "protect competitive integrity and the fan experience" through implemented "guardrails".

Data from Sportradar indicated that $10.7 billion was wagered on LoL Esports and the Valorant Champions Tour last year, with 70% of these bets occurring in unregulated markets with unlicensed operators.

Needham stated, "Engaging with betting sponsorships thoughtfully and with proper protections is preferred over ignoring the existing risks to fans and the sport's integrity."

The esports industry, especially after the pandemic, has faced financial unpredictability, making Riot's move unsurprising to some.

However, Riot acknowledges that this change could be divisive, as it formally associates betting with its video games.

Needham addressed in his statement, "Sports betting isn't universally accepted, and we respect differing opinions. However, existing betting around our sports will persist, irrespective of our involvement."

Reactions on the game's subreddit have generally been critical, although some perceive it as a foreseeable development.

Riot's "guardrails" will include ensuring regulatory compliance, monitoring best practices, and offering educational programs to uphold the "integrity" of the events.

The partnership program aims to bolster and maintain competitive standards by enhancing Riot's capability to track betting activity and addressing policy violations.

Needham laid out a procedure for collaborating with "sports betting" partners, which includes a vetting process, use of official GRID esports data for betting, and team integrity checks.

A portion of the program's revenue will be invested back into the secondary tier of Valorant and League of Legends teams to aid in their "growth and advancement," marking the only mention of Riot's financial gain from this initiative.

Moreover, broadcasts and social media will not feature betting advertisements, and teams cannot have betting company logos on their jerseys.

Needham concluded, "Engaging in this space responsibly allows us to define the standards rather than leaving it to others."