Riot Games reveals reason behind approving funding sources involving gambling endorsements
In a strategic move aimed at protecting the esports ecosystem, Riot Games, the developer behind popular titles League of Legends and Valorant, has announced partnerships with gambling operators. The partnership's ultimate goal is to ensure a controlled, responsible approach to esports betting, generating new revenue streams for teams while safeguarding competitive integrity and the fan experience.
The partnership is available for tier 1 teams in League of Legends and Valorant in the Americas and EMEA. Riot Games is implementing various guidelines and safeguards to make this a success.
Thorough vetting and approval of potential betting partners is a key requirement. All partners must undergo a strict vetting process and be approved by Riot before forming partnerships with teams. This ensures that only reputable operators are allowed to participate.
Betting operators partnering with teams are required to utilize Riot’s official esports data platform, GRID, ensuring transparency and accuracy in betting offerings. This data-driven approach will help maintain the integrity of the competitions.
Every team engaging with betting sponsors must establish and regularly evaluate an "Internal Integrity Program" to safeguard competitive integrity and prevent match-fixing or other abuses. This program will be a crucial tool in maintaining the fairness of the competitions.
Riot prohibits gambling advertisements on official Riot-owned broadcasts and social media channels. Additionally, teams cannot display betting sponsor logos on the front of players’ jerseys. This ensures that the viewing experience remains ad-free and uninterrupted.
Revenue generated from Tier 1 teams’ betting sponsorships will be shared with Tier 2 teams to support their growth, promoting ecosystem sustainability. This move is expected to provide significant new revenue streams for teams, helping improve their financial health and potentially raising competitive standards.
John Needham, President of Publishing & Esports at Riot Games, acknowledged the prevalence of esports betting and highlighted that 70% of sports bets are placed in unregulated markets. By permitting carefully managed betting sponsorships, Riot intends to bring more regulation, education, and oversight to esports betting and generate vital income for teams without compromising the fan experience or the integrity of competition.
The move is expected to move betting activity from unregulated to regulated markets, fostering safer betting environments around League of Legends and Valorant. Riot’s approach aims to create a more sustainable and responsible betting ecosystem in esports, balancing commercial opportunity with safeguards against exploitation or fan alienation.
By restricting betting ads on official Riot channels, Riot maintains a betting-free experience at the core broadcast level, differentiating esports from traditional sports’ often heavy gambling promotion. This careful, stepwise approach reflects Riot’s intention to embrace the reality of esports betting thoughtfully, maximizing benefits while minimizing risks to players, teams, and fans alike.
Sources: [1] Riot Games. (n.d.). Riot Games Partners with Gambling Operators to Regulate Esports Betting and Boost Team Revenues. Retrieved from https://www.riotgames.com/news/riot-games-partners-with-gambling-operators-to-regulate-esports-betting-and-boost-team-revenues
[2] Sportradar. (2021). 70% of Esports Bettors Place Bets at Unlicensed Websites. Retrieved from https://www.sportradar.com/us/news/70-of-esports-bettors-place-bets-at-unlicensed-websites
[3] Riot Games. (n.d.). Riot Games' Commitment to Responsible Gaming. Retrieved from https://www.riotgames.com/en/responsible-gaming
[4] Riot Games. (n.d.). Riot Games' Approach to Esports Betting. Retrieved from https://www.riotgames.com/en/esports-betting
- In recent developments, Riot Games has formed partnerships with sports betting operators for tier 1 teams in League of Legends and Valorant, focusing on a controlled, responsible approach to esports betting that balances commercial opportunity with safeguards against exploitation or fan alienation.
- This strategic move by Riot Games stipulates that betting partners must undergo a strict vetting process, ensuring that only reputable operators are allowed to participate in these gambling partnerships.
- The partnership also requires betting operators to utilize Riot’s official esports data platform, GRID, ensuring transparency and accuracy in sports betting offerings, while helping maintain the integrity of the competitions.
