Riot decides that allowing sports betting sponsorships in top-tier League of Legends and Valorant esports is a good idea

Riot Games believes that "building the future of esports means investing in a sustainable ecosystem, not just for today, but for the long run," Riot's president of publishing and esports John Needham said today, and that's why the studio has decided to open the door to "betting sponsorship opportunities" for Tier 1 League of Legends and Valorant teams in the US and EMEA.

"We know sports betting isn’t for everyone, and that some fans have strong feelings about it, and we respect that," Needham wrote in today's announcement. "However, the reality is that betting activity already exists around our sports and will continue whether we engage with it or not.

"Historically, this has been a restricted sponsorship category, and Riot has not engaged with betting companies. Teams have asked us to reconsider our stance, and after years of analysis to ensure we got it right, we agreed it was time to open up this category to create more revenue opportunities for teams."

There sure does seem to be a lot of money on the table. Needham cited figures provided by "sports technology company" Sportradar saying the "total betting turnover" on League of Legends and Valorant esports hit $10.7 billion worldwide in 2024. But 70% of betting across all sports—not just esports—is made in unregulated markets with unlicensed bookies, and Riot figures it's better for all involved if it moves to allow betting sponsorships "thoughtfully, carefully, and with the right protections."

That means Riot must vet and approve all potential betting partners before they're allowed to form a relationship with a team; potential betting partners must use official data provided by the GRID platform in their offerings; and all teams must establish an "Internal Integrity Program" that will "ensure competitive integrity, safeguard players and young audiences, [and] update responsible betting practices."

While Riot is embracing sports betting, it also seems to be taking steps to ensure it's not really seen to be embracing sports betting.

"Riot-owned broadcast and social channels will stay betting-free, which means no ads, no sponsored segments from betting partners, and no betting partner logos on team jerseys," ostensibly to avoid disrupting broadcasts with a flood of sports betting ads, Needham wrote. Individual teams will be left to determine how betting-related content appears within their channels, subject to all applicable guidelines and local laws.

To put it mildly, I have concerns. The ol' 'it's going to happen anyway so we should ensure it's done right' justification is almost never as high-minded as it's presented, and the real problem with sports gambling isn't that it's unregulated or sketchy, but that it's a scourge.

The World Health Organization says that "around 5.5% of women and 11.9% of men globally experience some level of harm from gambling," and cites a Swedish study indicating that people with gambling problems were 15 times more likely to die of suicide than the general population. Despite that, gambling "has been normalized through new commercial associations with sport and cultural activities that are now heavily promoted." Now Riot is going to contribute to that normalization for an audience that skews younger than those of conventional sports, a demographic the WHO says is especially susceptible to "heavy promotion of gambling online."

I take some small comfort in seeing that reactions to the announcement on the League of Legends and Valorant Competitive subreddits are not entirely positive. There's a lot of resigned acceptance and some cautious (maybe a little forced) optimism about better revenue shares for Tier 2 teams, but also plenty of concern about the long-term societal impact of endemic sports gambling.

The possibility of heightened toxicity or even violence against esports pros at the hands of angry gamblers was also brought up: "It's going to be especially bad for League/Val players since they are way more online than normal sport athletes," redditor CosmicMiru wrote.

So it seems like a terrible idea all around, at least for anyone who doesn't stand to make money on it, but Needham concluded by saying Riot believes "showing up in this space—responsibly—is better than letting others define it for us."

"We’ve said before that Riot is all in for the long term on our esports, and that means stepping into arenas like sports betting with an objective to both guide and protect our brands from bad actors by establishing what good looks like, while also providing an avenue for teams to benefit financially," he wrote.

"With any new endeavor, there will be challenges, and if we need to make adjustments, we will. Please know our overall commitment is to do right by our players, teams, and fans as well as the world-class esports experience that we’ve built together and want to see thrive for years to come."