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

Riot Games is cautiously allowing betting companies to sponsor top-tier esports teams for League of Legends and Valorant across North America, Europe, the Middle East, and Africa.

This development is part of an ongoing re-evaluation of esports strategies by Riot since 2023.

In a detailed blog post, John Needham, Riot's president of publishing & esports, explained that this decision is aimed at creating a lasting ecosystem for esports. He noted that teams have long requested inclusion of sports betting sponsorships.

Riot also asserted that safeguards would be in place to maintain "competitive integrity" and enhance the "fan experience".

The blog highlighted that last year saw bets totaling $10.7 billion on LoL Esports and the Valorant Champions Tour, yet 70% of those bets were placed in unregulated areas with unauthorized bookmakers, based on Sportradar statistics.

"We think it's preferable to engage with betting sponsorships in a thoughtful manner, ensuring necessary protections, rather than ignoring potential risks to fans and integrity," Needham stated.

Engaging the esports industry, known for its financial unpredictability, especially post-pandemic, makes Riot's decision somewhat expected.

Nevertheless, Needham acknowledges that linking betting to its gaming industry will be divisive.

"We respect that sports betting isn't accepted by everyone and that it evokes strong opinions," Needham wrote. "However, given that betting is already a reality around our sports, it will persist regardless of our involvement."

Reactions on the game's subreddit have mostly been unfavorable, though some see it as an inevitable step.

The established protective measures include crafting regulations, monitoring best practices, and implementing educational initiatives to uphold "integrity" throughout these events.

Riot further asserted that these partnerships would "enhance and enforce competitive integrity standards" of its esports engagements by improving the ability to "monitor betting activities and prevent policy violations".

Needham detailed a plan for cooperative efforts with "sports betting" affiliates, including a review and consent procedure, ensuring the use of official GRID esports data, and team integrity assessments.

Additionally, Riot plans to channel some profits into the lower-tier Valorant and League of Legends teams to aid their "development and progression". This post is the lone mention of Riot's revenue share.

Furthermore, betting ads will not appear on broadcasts or social networks, nor will teams display them on jerseys.

"We believe responsibly engaging in this sector is preferable to letting others set the norms," Needham remarked.