Betting is OK, Riot says

It’s no surprise that betting in esports has become a major revenue driver, considering the industry’s explosive growth in recent years. According to Esports Insider, about 74.3 million people bet on esports in 2024, generating $2.5 billion in revenue, with expectations to surpass $2.8 billion in 2025.

The financial instability across the esports industry has put immense pressure on Riot Games from teams and organizations seeking new sources of income given the struggles the industry faces. After all, organizations have been advocating for this change for quite some time, hoping to unlock new income streams to help sustain their operations.

Riot’s own numbers show global betting turnover for their esports titles hit $10.7 billion in 2024, with 70% of that activity happening through unlicensed, unregulated operators. It seems this surge finally pushed Riot to open the doors to betting sponsorships but it does raise the question: why did it take so long?

Anyone involved in esports knows how tough it is to make a living in this space. Most of us aren’t here for the money, there isn’t much to be made in the first place.
We do it for the passion, the fun, and the joy of belonging to something incredible.

But the reality is, without new revenue streams, teams and organizations are struggling to survive. Many have already disappeared, unable to keep up with the financial demands.

Hosting top-tier tournaments involves massive operating costs, and allowing betting sponsorships introduces a new revenue stream that will significantly support Riot Games and their efforts in the future.
It will help finance larger prize pools, improve the quality of events and leagues, and support the long-term sustainability of Ecosystem of Riot.

Of course, opening the door to betting sponsorships isn’t without risks. Match-fixing, gambling addiction, and the potential for disruptive advertising are all real concerns. Riot has addressed the advertising issue directly in their announcement before it could become a question.

On top of that Riot has already acknowledged the challenges that come with it but also confirmed commitment for increased support for their Tier 2 tournaments and beyond which is amazing to see being addressed right away!

I really like Riot’s cautious approach. Considering all the time they’ve taken makes me confident that all their precautionary measures will prevent the issues mentioned above together with their Partners such as GRID.

This level of preparation suggests they’re serious about protecting the community and the industry from the risks that can come with betting.
In my view, Riot’s decision is both bold and necessary. Although I would have expected such a move way earlier.