Riot Games Criticized for Embrace of Sports Betting Sponsorships

Posted on: June 30, 2025, 10:46h. 

Last updated on: June 30, 2025, 10:57h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Game developer’s decision to consider sports wagering sponsorships met with criticism in eSports community
  • eSports has had past brushes with betting scandals

Last week, Riot Games announced it’s opening top-tier teams in its League of Legends and Valorant and eSports competitions to sponsorships from sports betting companies — a decision that was derided by some in the eSports and gaming communities.

Riot Games
The Riot Games logo. The company is open to sports betting sponsorships. (Image: League of Legends)

The move comes just over two years after the company refuted reports it was relaxing a previously strict stance on relationships with sportsbook operators. Reversal of that stance could boil down to simple economics and the point that most wagers on eSports competitions are placed with unlicensed sportsbook operators.

According to Sportradar, the total betting turnover globally involving just League of Legends Esports and VCT reached $10.7 billion in 2024. But here’s the problem: 70% of bets across all sports are placed in unregulated markets with bookmakers who aren’t licensed,” noted John Needham, Riot eSports lead, in a blog post.

Needham added the decision “answers the call from our partner teams to open up sponsorship opportunities with betting brands to generate additional revenue for their financial health,” and that guidelines will be implemented to ensure integrity isn’t sacrificed.

Riot Decision Could Elevate eSports Betting

Wagering on competitive computer gaming is viewed as a future growth driver for the US sports betting industry. But, it’s one that hasn’t been tapped into in a significant fashion yet. eSports is one of the most widely watched sports in the US, and analysts expect it to eclipse all traditional sports, except the NFL, in terms of television viewership over the next several years.

Twenty-one US states and Puerto Rico permit wagering on eSports competitions, and another 13 and Washington, DC don’t have laws expressly prohibiting betting on those events. Four states, including Pennsylvania — one of the largest sports betting markets in the country — don’t allow it.

For operators, there’s money to be made in this space. If the $10.7 billion figure mentioned by Needham is accurate, that implies eSports would be one of the most wagered-on sports in the US, likely leaping ahead of the handle generated by traditional sports. He said Riot is taking a long-term perspective on sports wagering partnerships.

“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,” added the executive.

Some eSports Enthusiasts Not Happy with Riot Decisions

While Riot could realize financial benefits by partnering with sports betting companies, the eSports and gaming communities aren’t thrilled about the company opening its doors to sportsbook sponsorships. Some critics argue sports betting advertisements are already too common in traditional sports broadcasts and problem gaming habits are on the rise.

It’s also possible that if eSports operators deepen ties to sports wagering, that could open competitors to threats from bettors — something that’s frequently been seen across the traditional sports landscape.

Critics also point out that Riot has its own checkered history with betting scandals, including reports that surfaced last month of match-fixing allegations in the Valorant Tier 2 league. In 2023, a Singaporean Valorant player was sentenced to four months in jail for throwing matches.