Tencent (0700)-owned game developer Riot Games has discussed esports sponsorship with two major prediction markets, Kalshi and Polymarket, involving its viral games League of Legends and Valorant, Bloomberg reported, citing people familiar with the matter.
Notably, the League of Legends World Championship is set to begin in October.
Riot Games spokesperson Joe Hixson said prediction markets are an emerging sector that the company is evaluating, considering safeguarding competitive integrity, whether they can create value for participating teams, their impact on the viewer experience, and whether they align with the broader esports ecosystem's goals.
Prediction markets have increasingly partnered with traditional sports in recent years, such as Major League Baseball, the National Hockey League, and the Ultimate Fighting Championship. Basketball star LeBron James also announced a partnership with Polymarket on social media this week.
However, such partnerships remain controversial. The National Football League has stopped signing sponsorship agreements with prediction markets over concerns about inadequate regulation and potential legal challenges.
Riot Games cited data and noted that sports betting related to the two games reached US$10.7 billion (HK$83.46 billion) in 2024, with most bets coming from unregulated markets and unlicensed bookmakers — which is also one of the reasons that Riot Games began accepting traditional sports betting sponsorships last year.
Prediction markets such as Kalshi already allow users to bet on esports match outcomes. Kalshi is recruiting staff to build partnerships with esports leagues and expand the platform's esports business; Polymarket has also employed staff dedicated to esports since last year.
The esports industry has long struggled to turn a profit through ticket and merchandize sales alone, making it heavily reliant on corporate sponsorships. According to NewZoo data, sponsorship revenue can account for as much as about 60 percent of some esports organizations' total revenue.
