Riot Games has announced a historic move for the esports scene: the release of betting sponsorships for professional League of Legends and Valorant competitions. The decision, announced by John Needham, the company's president of esports, marks a radical shift in the developer's policy and raises questions about the competitive, ethical, and financial future of esports.
According to Needham, the measure aims to ensure the sustainability of the competitive ecosystem, meeting a long-standing demand from professional organizations. The release is initially available in the Americas and EMEA regions, with no plans to expand to other territories.
Riot takes control of an existing practice
Needham justified the decision by stating that sports betting already occurs, often clandestinely and without regulation. For example, Sportradar recorded over $10.7 billion in bets related to League of Legends, most of it on unlicensed platforms.
With this in mind, Riot has decided to officially integrate this market into its ecosystem, proposing clear rules and monitored partnerships. The goal is to reduce the activity of illegal exchanges while simultaneously generating revenue to support teams and championships.
Protective measures and focus on competitive integrity
To mitigate risks, Riot will implement three pillars of protection:
- Rigorous evaluation and approval of betting sponsors.
- Gambling education for teams and communities.
- Strengthening integrity guidelines in tournaments.
The company states that no official broadcasts will feature advertising for betting companies. However, co-streams hosted by influencers, who represent a significant portion of the audience, may include these ads, as they are not controlled by Riot.
Financial crisis demands new sources of revenue
The decision comes at a time of financial instability for esports. After years of pandemic-driven investment and promises of high returns, many organizations are struggling to maintain their operations. However, the lack of recurring revenue, coupled with the departure of sponsors and investors, has exposed the fragility of the current business model.
The teams pressured Riot to release new monetization methods. Betting was one of the alternatives found. However, experts warn that this option, while financially attractive, could compromise the core values of the competitive scene.
