You know VALORANT or maybe LEAGUE of LEGENDS ? Well the parent company of those games RIOT Games made some substantial changes in it’s esports policy. In June of 2025, they announced a groundbreaking policy shift and enabled gambling sponsers for their Tier 1 esports teams in Americas, Europe, Middle Ease and AMEA. This decision makrs a significant departure from the company’s previous rule against gambling related partnerships.This comes as a response to the 10.7 billion global esports betting market, where 70 percentage of the bets are placed in unregulated markets. By engaging with licensed partenrs, Riot is becoming one of the big first movers in legal betting sponsorship. But it’s not all sunshine as people are concerned about what it entails.

The Rational Behind the Move

This doesn’t come as a surprise as it was being requested by the professional teams for years who are seeking new revenue streams for their teams. The esports organizations face high cost to manage players and providing the facilities to be able to compete at the highest level. The global esports market is projected to react $2.2 billion in 2025, and from that 25% is sponsorship revenue. By opening the Betting sponsors, Riot seeks to boost team sustainability while reinvesting portions of the revenue into Tier 2 ecosystems, supporting price pools, new tournaments and aspiring pros.

Safeguards and Guidelines

To address concerns, Riot has implemented strict measures. All betting sponsors must undergo a rigorous vetting process and use official GRID esports data to ensure fair betting practices. Betting advertisements are prohibited on Riot-owned broadcasts, social media, and team jerseys, leaving teams to manage gambling-related content within local regulations and platform terms. These guardrails aim to protect the integrity of competitions and shield younger audiences from excessive gambling exposure.

The Controversy

As you could guess this decision comes with heated debates in the community as critics as well as fans worry that gambling sponsorship can promote gambling to wide range of audience. This could lead to addiction and financial harm especially to children often leading to depression and self harm in some cases. Others argue that aligning esports with gambling risks is tarnishing the legacy of esports as a sport. Some view it as the pragmatic move to secure the industry’s future as traditional sponsorship dwindle in number.

The Future Implication

This policy could reshape esports in several ways. Financially, it offers teams a lifeline, potentially stabilizing leagues and fostering growth in Tier 2 ecosystems. However, the social and ethical implications are significant. If mismanaged, gambling sponsorships could alienate fans, erode trust, or invite regulatory scrutiny, particularly in regions with strict gambling laws like the U.S., where regulations vary by state. Riot’s cautious approach—vetting sponsors and limiting ad visibility—aims to mitigate these risks, but the long-term impact remains uncertain.