TLDR: Riot considering prediction market sponsorships going forwards, break from the normal "no gambling" stuff
Tencent Holdings Ltd.’s Riot Games, maker of the popular video games League of Legends and Valorant, has discussed esports sponsorship deals with two of the leading prediction market operators, Kalshi and Polymarket, according to people with knowledge of the conversations.
“Prediction markets are an emerging space that we’re evaluating with a focus on safeguarding competitive integrity, potential value for teams, impact on the fan experience, and alignment with our broader ecosystem goals,” Riot Games spokesperson Joe Hixson wrote in an email.
Any approved sponsor would have to use GRID Esports, Riot’s partner, as their source for official betting data, according to one of the people, who asked to not be identified because the talks are private.
The discussions are occurring ahead of League of Legends’ World Championships, which begin in October. Kalshi declined to comment. Polymarket didn’t respond to a request for one.
The talks come amid increasingly frequent deals between prediction markets and traditional sports leagues like Major League Baseball, the National Hockey League and the Ultimate Fighting Championship. Basketball star LeBron James announced a partnership with Polymarket in a post on X this week.
The deals are controversial. The National Football League is holding off on signing such sponsorships after expressing concerns around “inadequate regulation” and “legal challenges,” Bloomberg News reported.
League of Legends and Valorant esports tournaments attract millions of viewers around the world — an audience that skews significantly younger than traditional sports fans.
Sports-betting tied to the two titles reached $10.7 billion in 2024, Riot Games said, citing Sportradar Group data. Most bets were placed in unregulated markets with unlicensed bookmakers, which is why Riot began accepting traditional sports-betting sponsorships last year.
Prediction markets already let users bet on the outcomes of esports games. Kalshi is currently hiring for a role that involves partnering with esports leagues and growing the prediction market’s presence in esports. As of at least last year, Polymarket started employing people focused on esports, according to information on LinkedIn.
Esports has traditionally struggled to earn profit through ticket and merchandise sales and relies on sponsorships, which represent as much as 60% of organizations’ revenue, according to NewZoo.
If this passes I wonder if this opens the doors to more major third-party tournaments next year, easier for Blast/IEM etc to justify hosting a huge LAN if Polymarket are paying the bills
Discord