Esports sponsorships expansion in betting is declined by Riot Games.
A recent speculation suggests that Riot Games could ease their rules regarding sponsorships in the competitive gaming scene, known as eSports. However, Riot Games has publicly denied this claim. Yet, this news might not spell the end for eSports fans or betting operators.
On Wednesday, the Turkish eSports news outlet Esporkilik claimed that Riot would permit sports betting firms to sponsor teams and events within their Valorant ecosystem. While such sponsorships already exist in games like Counter-Strike: Global Offensive (CS:GO) and FIFA, they are limited.
However, an insider at Riot disputes this information.
With substantial cuts in investment funds for eSports teams, particularly in Europe and the US, there's a pressing need for new income sources. Sponsorships by betting companies might provide a solution, given they typically offer higher payouts compared to other sectors.
Betting Brands in Question
If Esporkilik's report is accurate, it would be Riot's third instance of dealing with controversy concerning sponsorship policies within the past few years. Previously, the eSports division received financial backing from Saudi Arabia, but the arrangement crumbled under public pressure.
Whether this pressure catalyzed the current sponsorship rumors remains uncertain. Esporkolik maintains that it received information directly from Riot about the new sponsorship policies, despite Riot later denying these claims.
Dot Esports, a gaming and eSports-focused media outlet, received verification from Riot that no changes have been made to their sponsorship policies, which implies that deals with sportsbooks are still prohibited. However, Riot noted that they will "continue to evaluate all opportunities …"
Hinting at expanding sponsorship options could be an effective way to gauge potential opportunities. Given the backlash Riot faced with their Saudi deal, allowing the eSports community to respond to a rumor would offer insights into the acceptance of sports betting sponsorships.
Although Riot may not have taken this approach, it's plausible that Esporkilik misconstrued the information they received. Regardless, Riot seems to have elicited the responses they were seeking.
Market Merger
There was an outpouring of negative comments about the prospect of betting companies sponsoring events and teams on social media platforms. However, betting does have a presence in eSports. VIE.gg is a betting operator that sponsors Dignitas' CS:GO team, while DraftKings became Faze Clan's sponsor in 2021.
However, most gamers express disapproval towards this idea. The primary reason is the young demographic within the gaming community – the average gamer in the US is between 18-25, with 24% under 18, as per Statista.
In 2022, Riot sealed a deal with FTX, a cryptocurrency exchange, which proved disastrous when the exchange folded later that year. Team SoloMid, an organization established in 2011, also had an agreement with the exchange.
The eSports environment remains robust but is experiencing declines. For instance, last year's League of Legends Championships Series finals saw viewership drop by as much as 33%.
Recently, the Valorant Challengers League in Europe was forced to cut down its content and broadcasts due to several sponsors leaving the organizer, Promod. Now, Promod is "operating the league at cost," which raises doubts about its sustainability.
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