Riot Games has authorized top-tier League of Legends and Valorant esports teams in the Americas and EMEA regions to secure sponsorships from betting companies. This move comes with rigorous control measures aimed at preserving competitive integrity and safeguarding the viewer experience. A portion of the revenue generated from these partnerships will be dedicated to supporting the Tier 2 esports scene. This expanded policy was detailed in a statement by John Needham, Head of League of Legends Esports.
According to Riot, building a sustainable ecosystem is crucial for the future of esports, supporting players, teams, and fans. The company has been implementing steps towards this goal, including new partnership models and more stable revenue streams for teams, with sponsorship categories being a key part.
Betting sponsorship has been a long-discussed category, frequently requested by teams for policy reconsideration. Riot has now deemed the time appropriate to allow this, viewing it as a significant opportunity to open up additional revenue streams for teams.
Why Betting Now?
While acknowledging that betting can be a sensitive topic for some, Riot points out that esports betting is already a substantial and growing market, regardless of their direct involvement. Previously, Riot restricted betting sponsorships and did not partner with such brands. However, recognizing the existing market and the teams` requests, analysis led to the conclusion that entering and regulating this segment is preferable to ignoring it.
The esports betting market is attracting more fans annually. Data suggests billions are wagered on LoL Esports and VCT alone each year, with a significant portion currently handled by unregulated, offshore operators. Riot believes a controlled approach allows them to mitigate risks associated with unregulated betting, such as match-fixing and potential harm to fans.
Riot`s Approach: Prioritizing Safety
As the publisher of major esports titles, Riot Games feels a strong responsibility towards its ecosystem. By opening the door to betting sponsors, they are implementing a clear and structured system designed to:
- Meet teams` demand for betting sponsors, aiding their financial stability.
- Support the development of rules, monitoring systems, and educational initiatives to protect competitive integrity.
- Strengthen fair play measures through enhanced betting monitoring and violation prevention.
To achieve this, teams engaging with betting partners will be equipped with necessary tools and guidelines for safe and transparent operations.
Specific Measures Being Implemented
1. Strict Bookmaker Vetting: All potential betting partners must undergo verification and approval by Riot, adhering to strict standards to exclude unregulated entities.
2. Use of Official Data via GRID: Esports relies on reliable data. Riot`s partnership with GRID ensures a unified, verified data source. All bookmakers working with teams are mandated to use only official GRID data to prevent manipulation.
3. Mandatory Team Integrity Programs: Teams partnering with bookmakers must implement internal integrity programs aligned with Riot`s standards, covering fair play protection, safeguarding players (especially minors), and promoting responsible betting. This is seen as a shared responsibility across the scene.
4. Support for the Tier 2 Scene: Although betting sponsorships are only available to Tier 1 LoL and Valorant teams, a portion of Riot`s program revenue will be directed towards developing the Tier 2 scene. This includes potentially increasing prize pools, launching new tournaments, strengthening integrity systems, and expanding educational programs for organizers and young players.
Maintaining Broadcast Integrity
A key priority is preserving the fan experience. Therefore, no betting advertising will appear on Riot`s official broadcasts or social media channels. This includes no bookmaker logos on team jerseys or any direct advertising segments during official streams. Teams will have the ability to integrate betting-related content through their own channels, strictly within program guidelines, platform rules, and local laws.
Looking Ahead
Riot believes it`s better to define the rules in this segment than to let others do so. Their commitment to esports development means entering the betting category with clear standards to protect the ecosystem from unfair practices, provide teams with a new revenue stream, and preserve the unique fan experience. Riot remains open to adjusting the course as needed, aiming to do what is right for players, teams, and viewers to ensure Riot esports continues as a world-class entity for years to come.
In summary: While Riot Games previously avoided the betting market due to concerns about competitive integrity and young audiences, the company has now decided to enter the space under controlled conditions designed to be minimally disruptive to viewers and players. Key restrictions include the absence of betting advertising on official broadcasts and no bookmaker logos on player uniforms. Rumors about this change circulated earlier, and the policy is now officially in effect.