Riot Games has announced that it will begin officially sanctioning sports-betting sponsorships for esports teams in its Tier 1 League of Legends and Valorant leagues. While the company states that it still won’t allow advertisements in its official broadcasts, teams themselves will be able to take money from sports-betting companies for advertising through their own channels.
In a blog post, President of Publishing and Esports John Needham writes that the move is designed to take advantage of the rapidly growing sports-betting industry and to make esports-related betting more regulated. Seemingly to address concerns and head off potential criticism, Needham explains that the company is authorizing sports-betting sponsorships under a “guardrails first” strategy.
These “guardrails,” Needham states, are essentially the rules by which any sponsorship must be executed. First, sports-betting companies need to be vetted and approved by Riot itself, although the company has not shared the criteria on which this vetting is done. Second, to ensure that sports-betting companies are on a level playing field, Riot is mandating that official partners all use GRID, the officially sanctioned data platform for League of Legends and Valorant. Third, esports teams must launch and maintain internal integrity programs to protect against violations of league rules due to the influence of sports betting. Fourth and last, Riot will use some of the revenue from these sponsorships to support its Tier 2 (lower division) esports leagues.
