Riot Games has made a significant announcement regarding its popular titles, Valorant and League of Legends, as they embrace gambling sponsorships. This decision comes after extensive discussions within the company and reflects worries about the long-term sustainability of the esports scenes for both games.
The global esports market was valued at $2 billion in 2023 and is projected to grow to $5.5 billion by 2029. Despite these promising figures, some industry leaders believe that esports is a challenging business prone to financial loss.
The aftermath of the pandemic has heightened these concerns, leading to a decrease in sponsorship in the market and leaving many esports teams in a precarious position. After five successful years, Valorant has become a cornerstone of both competitive gaming and content creation.
In an effort to improve sustainability, Riot has decided to permit betting sponsorships with specific conditions for its top-tier teams. John Needham, Riot’s President of Publishing & Esports, emphasized the importance of topics like “sustainability,” “revenue,” and “financial health” in his announcement about these new sponsorship opportunities.
The decision to allow gambling sponsorships acknowledges the existing betting culture around esports, which will persist regardless of company involvement. This initiative opens sponsorship opportunities for teams in North America, South America, and the EMEA region while establishing strict regulations to maintain the integrity of esports events.
To earn approval, potential partners must adhere to Riot’s guidelines, utilize data from an official partner, and fulfill integrity program requirements to prevent issues like underage gambling and match-fixing. Riot has also pledged that all official esports streams will remain free of gambling sponsors and has no immediate plans to broaden this sponsorship category to Asia and Australia.
Professional teams have long requested such opportunities, and although the company’s decision may have been driven by sustainability concerns, they aim to execute this shift responsibly.