Riot Games allows betting sponsors for League and Valorant teams

Riot Games announced on June 26, 2025, that it will permit betting sponsorships for Tier 1 League of Legends and Valorant teams in the Americas, Europe, and Middle East regions. The decision marks a significant shift in esports sponsorship policies, ending years of restrictions on gambling-related partnerships.

According to John Needham, President of Publishing & Esports at Riot Games, teams have requested access to betting sponsors for years as a revenue source. "The reality is that betting activity already exists around our sports and will continue whether we engage with it or not," Needham stated in the company's official announcement.

Sportradar data shows League of Legends and Valorant generated $10.7 billion in betting turnover globally during 2024. However, 70% of these bets occurred through unregulated bookmakers without proper licensing. This statistic influenced Riot's decision to create a regulated framework for betting partnerships.

The company established several safeguards for the new sponsorship category. All potential betting partners must receive approval from Riot before pursuing team partnerships. Teams must develop internal integrity programs that align with Riot's competitive integrity standards and responsible betting practices.

Riot-owned broadcast channels will remain betting-free under the new policy. The company explicitly prohibits betting advertisements, sponsored segments, and partner logos on team jerseys during official streams. Teams must determine how betting-related content appears on their own channels within sponsorship guidelines and local regulations.

A portion of Riot's revenue from betting partnerships will support Tier 2 esports development. The funds will increase prize pools, create new tournaments, develop integrity systems, and expand training programs for tournament operators and aspiring professionals.

The announcement follows growing financial pressures in the esports industry. According to reports about the "esports winter," organizations face layoffs and closures. Gaming industry analysis suggests Saudi Arabian investment has provided some financial relief for struggling teams.

Data from professional sports demonstrates gambling's impact on athlete harassment. A December study by four major tennis federations found angry gamblers were responsible for nearly half of 12,000 abusive social media posts directed at tennis players in 2024. Baseball players report similar experiences with death threats linked to gambling losses.

Co-casting significantly influences esports viewership numbers. Co-casters contributed 87.5 million hours watched during Worlds 2024, representing a 30% increase in total watch time compared to the previous year. The most-watched co-caster achieved 17.02 million hours watched and 372,000 peak viewers.

Recent match-fixing allegations in Valorant's North America Challengers scene prompted Riot's investigation. Sean "sgares" Gares published an exposé on May 16, 2025, detailing alleged bribery offers up to $50,000 to manipulate match outcomes. Riot confirmed it had launched investigations into suspicious activity before the video's release.

Advertising transparency and responsible gambling have become focal points for digital platforms. Google updated its TV Masthead policies in April 2025 to allow sports betting advertisements, reflecting broader industry changes in gambling advertising acceptance.

Gaming companies increasingly target younger demographics through esports platforms. According to Bellular News, gambling sponsors now target "predominantly young men through esports" and young men in low-income regions represent "the hardest hit population group" for gambling-related problems.

Industry critics argue no responsible approach exists for gambling sponsorships in games marketed to younger audiences. The decision contrasts with Riot's previous content policies, which removed cigarettes from character artwork and modified alcohol references to maintain age-appropriate ratings.

The policy affects professional teams in specific regions. Organizations in Asia-Pacific territories cannot pursue betting sponsorships under current guidelines. Teams must navigate varying local gambling laws and platform content policies when implementing sponsored content.

Betting partnerships require compliance with established data standards. Teams must use GRID, Riot's official esports data partner, to ensure consistency and integrity across betting platforms. This requirement aims to prevent manipulation by restricting unauthorized data sources.

The competitive gaming industry follows traditional sports precedents in embracing gambling partnerships. Professional leagues across multiple sports have gradually accepted betting sponsorships as revenue sources, despite ongoing concerns about match-fixing and athlete harassment.

Financial sustainability concerns drive sponsorship policy changes. Esports organizations require predictable revenue streams to maintain operations during economic uncertainty. Betting companies offer substantial partnership values that exceed traditional technology and energy drink sponsors.

Team owners must balance revenue opportunities with brand considerations. Organizations face decisions about betting sponsor prominence while maintaining relationships with existing partners and community standards. Player associations have not publicly commented on the policy changes.

Viewership data influences sponsorship valuations in competitive gaming. Peak concurrent viewership for major tournaments reaches millions of viewers globally, creating attractive advertising opportunities for betting companies seeking engaged audiences.

Match integrity monitoring systems will expand under betting partnerships. Riot plans to invest additional betting revenue into sophisticated tracking systems designed to identify suspicious betting patterns and potential match-fixing attempts across professional competitions.

The announcement represents broader changes in gaming industry monetization strategies. Companies increasingly explore alternative revenue sources beyond traditional game sales and in-game purchases as development costs rise and market competition intensifies.

Regional regulatory compliance requires careful navigation. Different jurisdictions maintain varying gambling advertising restrictions, forcing teams to develop market-specific content strategies for sponsored materials and promotional activities.

Professional player welfare considerations remain secondary in policy discussions. Athletes face increased scrutiny and potential harassment from gambling audiences, but formal player protection programs have not been announced alongside sponsorship policy changes.

Timeline

• December 2024: Riot Games first considers betting sponsorships for esports teams
• May 16, 2025: Sean Gares publishes exposé about Valorant match-fixing allegations
• June 26, 2025: Riot Games officially announces betting sponsorship policy for Americas, EMEA regions
• August 2, 2025: Bellular News publishes analysis video about gambling's impact on esports
• 2025 onwards: Policy implementation begins for Tier 1 League of Legends and Valorant teams

Key Terms Explained

Betting Sponsorships

Betting sponsorships represent financial partnerships between gambling companies and esports organizations where betting platforms pay teams for promotional opportunities. These arrangements typically include logo placement, content creation, and audience access rights. The esports industry has historically restricted such partnerships due to concerns about match integrity and audience demographics, making Riot's policy change particularly significant for revenue generation strategies.

Riot Games

Riot Games serves as the publisher and developer of League of Legends and Valorant, two of the world's largest competitive gaming titles. Founded in 2006, the company controls the entire competitive ecosystem for these games, including professional leagues, tournament operations, and sponsorship policies. Their decision to allow betting partnerships affects thousands of professional players and millions of viewers worldwide.

Tier 1 Teams

Tier 1 teams represent the highest level of professional competition in League of Legends and Valorant ecosystems. These organizations compete in premier leagues like LCS, LEC, and VCT, attracting the largest audiences and sponsorship opportunities. The restriction of betting partnerships to Tier 1 teams ensures only the most established organizations with proper infrastructure can access these revenue sources.

Esports

Esports encompasses organized competitive video gaming at professional and semi-professional levels. The industry has grown from niche entertainment to mainstream media, with tournaments drawing millions of viewers and generating substantial advertising revenue. Professional esports now mirrors traditional sports in structure, including leagues, seasons, transfers, and comprehensive sponsorship ecosystems.

Revenue

Revenue generation challenges have intensified across the esports industry as organizations struggle with sustainability. Traditional sponsorship categories often provide insufficient funding for operational costs, player salaries, and facility maintenance. Betting partnerships offer substantial financial opportunities that exceed conventional technology and consumer brand sponsorships, making them attractive despite associated risks.

Teams

Professional esports teams function as branded organizations employing players, coaches, analysts, and support staff across multiple competitive titles. These entities require substantial ongoing investment for salaries, training facilities, travel expenses, and content creation. Teams operate similarly to traditional sports franchises, seeking diverse revenue streams including merchandise, content partnerships, and sponsorship agreements.

Integrity

Competitive integrity represents the fundamental principle ensuring fair competition without external manipulation or corruption. In esports contexts, integrity encompasses match-fixing prevention, player conduct standards, and transparent competitive processes. Betting partnerships inherently create potential conflicts of interest, requiring sophisticated monitoring systems and clear regulatory frameworks to maintain competitive authenticity.

Gambling

Gambling within esports contexts involves wagering on match outcomes, player performance metrics, and tournament results. The practice has expanded rapidly alongside esports growth, creating substantial markets for both regulated and unregulated betting platforms. This expansion raises concerns about addiction, youth exposure, and potential corruption of competitive environments.

Viewership

Viewership metrics drive commercial value in competitive gaming, with peak concurrent viewers and total watch time determining advertising rates and sponsorship valuations. Major esports events regularly achieve millions of simultaneous viewers across multiple platforms and languages. Co-casting has significantly expanded total viewership by enabling content creators to broadcast tournaments to their dedicated audiences.

Regulations

Regulations governing esports betting vary significantly across jurisdictions, creating complex compliance requirements for international organizations. Some regions maintain strict prohibitions on gambling advertising, while others have developed comprehensive frameworks for licensed operators. Teams must navigate these varying legal landscapes when implementing betting partnerships, ensuring compliance with local laws and platform policies.