Riot Games to Permit Top Esports Teams to Partner with Gambling Companies

In a significant shift, Riot Games is introducing a new sponsorship policy that enables top-tier League of Legends and Valorant esports teams in key regions to collaborate with betting companies. This move is part of a broader esports strategy overhaul initiated by Riot in 2023. According to John Needham, Riot's president of publishing and esports, the decision is driven by the goal of establishing a sustainable ecosystem for the future of esports, with teams having requested sports betting as a sponsor category for years. To address concerns, Riot is implementing 'guardrails' to protect the integrity of competitions and the fan experience. The company cites data from Sportradar, which shows that $10.7 billion in bets were placed on LoL Esports and the Valorant Champions Tour last year, with 70% of these bets made in unregulated markets. Needham emphasizes that engaging with betting sponsorships in a thoughtful and controlled manner is preferable to ignoring the risks associated with unregulated markets. While acknowledging potential controversy, Riot believes that its approach will strengthen competitive integrity standards and support the growth of esports. The company will invest a portion of its earnings from the program in the development of lower-tier teams and will maintain a ban on betting advertisements during broadcasts and on social channels.