Riot Games' publishing and esports boss, John Needham, on the journey to profitability, Riot's transmedia ambitions, and why it allowed gambling sponsorship
Riot Games' esports business, historically unprofitable, is now close to breaking even. Changes made since 2020, such as pivoting to digital items over sponsorships, have boosted team finances. Riot is now more lenient with teams participating in third-party tournaments and revenue sharing. The company's approach to esports has evolved to focus on engaging players and driving game participation.
Esports, once a marketing tool, now aims for profitability while still serving as a player engagement platform. Riot's esports broadcasts cater to hardcore gamers but also aim to attract a broader audience. The firm continues to set viewership records with international events, expanding its player base and engaging with gaming communities. Riot's recent launch of the fighting game 2XKO is seen as an authentic addition to the esports scene, tailored to the community's expectations.
Despite facing backlash for allowing gambling sponsorships, Riot defends the move as a way to engage with betting platforms responsibly. The company ensures clean data sharing with these partners to protect players. Riot acknowledges the inevitability of gambling in esports and aims to navigate this space in a player-centric manner.
