Riot Games Faces Backlash Over Endorsement of Sports Betting Partnerships
Riot Games, the developer behind popular esports titles like League of Legends and VALORANT, has announced a significant shift in policy. Starting in 2025, the company will allow sports betting sponsorships in its esports competitions, marking a new era for the industry.
This move opens the door for regulated and licensed betting sponsors in select regions, initially focusing on League of Legends and VALORANT. The partnership with crypto exchanges such as Coinbase represents an innovative fusion between esports and digital finance, offering new fan engagement and economic opportunities within these communities.
The decision promises to boost esports’ financial viability by tapping into the rapidly growing betting market. According to analysts at Needham, if the $10.7 billion figure they mentioned is accurate, esports could become one of the most wagered-on sports in the US, potentially surpassing the handle generated by traditional sports.
However, the move also raises concerns about match-fixing and corrupt influences. Riot's recent investigation into VALORANT match-fixing allegations is a testament to these concerns. The integrity of competitions may be threatened if betting-related misconduct occurs, demanding robust oversight and collaboration with anti-cheat and betting integrity organizations to mitigate risks.
Riot is taking a long-term perspective on sports wagering partnerships, aiming to guide and protect its brands from bad actors while providing an avenue for teams to benefit financially. The company has implemented guidelines to ensure integrity isn't sacrificed in the sponsorship process.
Not all reactions to this decision have been positive. Some esports and gaming communities have expressed concerns about problem gaming habits, common sports betting advertisements in traditional sports broadcasts, and potential threats from bettors.
It's worth noting that not all states in the US allow wagering on esports. Four states, including Pennsylvania, don't allow wagering on eSports, while 21 states and Puerto Rico permit wagering on eSports competitions. Another 13 states and Washington, DC have no laws expressly prohibiting it.
This reversal of Riot's stance could be due to economic reasons, as most wagers on eSports competitions are placed with unlicensed sportsbook operators. John Needham, Riot eSports lead, noted in a blog post that 70% of bets across all sports are placed in unregulated markets with unlicensed bookmakers.
The decision could potentially elevate eSports betting due to the increased involvement of licensed betting companies. According to Sportradar, the total betting turnover globally involving just League of Legends Esports and VCT reached $10.7 billion in 2024.
Riot Games' decision positions esports alongside traditional sports in monetizing betting interests, which can accelerate growth and fan engagement financially. However, it simultaneously necessitates strengthened governance to prevent potential betting-related corruption.
- Riot Games has announced a policy shift, allowing sports betting sponsorships in esports competitions from 2025, opening the door for regulated and licensed betting sponsors.
- The partnership with crypto exchanges like Coinbase signifies an innovative fusion between esports and digital finance, offering opportunities for fan engagement and economic growth.
- The move toward sports-betting sponsorships could significantly increase esports' financial viability, potentializing it to become one of the most wagered-on sports in the US.
- However, the decision also raises concerns about match-fixing and corrupt influences, as highlighted by Riot's investigation into VALORANT match-fixing allegations, necessitating robust oversight to maintain competition integrity.
