For years, sports betting has been kept away from esports’ front-facing public image, with betting sponsorships for teams disallowed. Now, for Riot Games’ two major esports, two of the biggest in the world, that division is no more. In a statement released to Riot’s social media, Riot President of Publishing and Esports John Needham officially made the announcement: Tier 1 LoL and VALORANT teams are now allowed to pursue sports betting sponsorships.

According to Needham, the decision comes after years in which “teams have asked us to reconsider our stance [on sports betting sponsorships]”. Why did Riot finally acquiesce? For one, money. Needham mentions a Sportradar figure of $10.7 billion in 2024’s total betting turnover for LoL Esports and VCT. Later, he elaborates in saying that, for the teams, betting sponsorships will “generate additional revenue for their financial health.” Certainly, sports betting sponsorships represent a real money-making avenue for the Tier 1 teams.

But Riot laid out intentions to support even Tier 2 teams, though restricted still from these lucrative sponsorships. Needham stated that a “portion” of the money Riot earns from this program will go to their investment in Tier 2, aimed at funding prize pools, new tournaments, development programs, and more.

Tackling challenges

One thing Needham emphasized in his statement was Riot’s goal of reducing black-market betting. When referencing the huge turnover numbers, he also acknowledged the problem that “70% of bets across all sports are placed in unregulated markets with bookmakers who aren’t licensed.” Regulation and moderation is therefore a priority for Riot, announcing a vetting and approval process applied to each potential betting sponsorship partner. To ensure “clean, official data," Needham said the Riot partnership with data source GRID would be mandatory for all official partners as well. Teams will also, Needham stated, be required to perform integrity checks of their own.

Another crucial aspect of the announcement came in how betting sponsorships would actually factor into the esports viewing experience. Needham established that “Riot-owned broadcast and social channels will stay betting-free,” meaning the Red Bull Baron Power Plays of yesteryear will not soon make way for gambling-themed Atakhans. Advertisements, sponsored segments, and even betting partner logos on team jerseys are all specifically outlined by Needham as against these guidelines. This way, watching LoL esports and VCT on official Riot broadcasts will remain much the same, while teams themselves will focus on outputting sponsored content of their own.

Riot’s choice to allow sports betting team sponsorships is part of a broader shift felt throughout the esports ecosystem. Sheep Esports, this very site, recently partnered with poker, sports, and esports betting platform Winamax in Europe. Other esports, such as Counter-Strike 2, have major tournaments partnerred with betting sponsors. This direction, divisive with some fans, remains a steadily-moving-forward part of esports. Now, that extends to the likely coming wave of betting sponsorships for teams across the LTA, LEC, and VCT.