Money plays a key role in the development of professional teams and the game itself. Clubs strive to expand their financial budgets in every possible way, primarily through sponsorship contracts with various brands. A significant portion of sponsors in Counter-Strike are betting companies and other gambling services, without which the discipline would likely struggle to survive. Let’s explore why Valorant can develop without support from betting companies, while Counter-Strike cannot.

In this article:

• Sponsors of top Valorant clubs
• Developer policies: Riot Games vs. Valve
• Audience and reputation risks
• Dependence on betting companies
• How clubs in Valorant earn without betting companies
• Esports can exist without betting companies
• Conclusion

Sponsors of Top Valorant Clubs

We reviewed ten top clubs in Valorant’s VCT franchise league and listed their key sponsors:

Summary of sponsors:

There are no betting or gambling sponsors, while in Counter-Strike, betting companies are a primary source of sponsorship, and the discipline would struggle to survive without them. Almost every top CS team has a betting company as a title sponsor, and tournaments are largely funded by them.

Developer Policies: Riot Games vs. Valve

Riot Games, Valorant's developers, strictly control the game's sponsorship policies, rejecting partnerships with risky entities like betting companies, gambling, and cryptocurrency. Valve, on the other hand, adopts a hands-off approach, leaving such decisions to the clubs.

Advantages of Riot Games' Approach:

• Sponsor Quality Control: Riot actively filters brands that could damage Valorant’s image or future.
• Attracting Alternative Sponsors: The absence of betting partners allows sponsors from sectors like technology, fashion, food, and beverages to enter.

Audience and Reputation Risks

Valorant’s primary audience is young, and Riot Games is mindful of the risks, avoiding sponsorships that could potentially harm their future. The game does not have cases or features that encourage addiction, unlike Valve, which permits cases with skins that players spend millions on daily. Betting sponsorship in CS has faced criticism for the risks of gambling and its association with toxic behavior.

Dependence on Betting Companies

Betting companies are a stable revenue source for CS, Dota 2, and other games where developers are lenient about it. Many fans are attracted to betting, and the constant advertising helps betting companies continue sponsoring tournaments and clubs.

Reasons for CS’s Dependence on Betting Companies:

• Long History: Gambling has been a part of CS for years.
• High Profits: Betting companies earn significant revenue from players’ bets, supporting large prize pools. Without gambling, tournaments and salaries would decrease, negatively impacting the scene.
• Lack of Control: Valve has shown little interest in regulating this, making betting an integral part of the game.

How Valorant Clubs Earn Without Betting Companies

The answer is simple — Riot Games. Valorant developers financially support clubs participating in VCT, providing them with annual payments (between $200,000 and $300,000) just for participating, along with other bonuses for social media content. Additionally, teams receive their own in-game skins, sharing revenue from them and from Valorant Champions skins. Clubs also attract various sponsors, from food and drinks to banks and payment systems.

READ MORE: All the ways organizations make money in Valorant

Esports Can Exist Without Betting Companies

Riot Games has shown through Valorant that esports can not only survive without betting companies but also thrive when the game itself is invested in and funded properly. This young discipline has quickly risen to the top five in popularity, with its audience numbers growing annually.

Key Factors in Valorant’s Growth Without Betting:

• Self-funding of teams and tournaments.
• Attraction of a young and diverse audience.
• Partnerships with a wide range of brands, from gaming devices and chairs to banks, drinks, and fashion.

Valorant follows a sustainable growth model without reliance on betting funds, unlike Valve, which appears to be entrenched in a reliance on betting companies that now seems inescapable. Valve has shown no inclination to remove betting companies and other gambling services as a main revenue source.

Conclusion

In summary, Riot Games demonstrates that esports disciplines can grow steadily and sustainably without the involvement of betting and gambling services. With strict controls in Valorant and League of Legends, they protect their young fanbase, who make up the majority of the audience. This approach attracts reputable brands from diverse sectors, creating a healthy ecosystem independent of betting. Unlike Riot, Valve has taken a passive stance on this matter, leaving responsibility to the clubs and tournament organizers to decide which companies to advertise. This has left Dota 2 and Counter-Strike heavily dependent on betting companies.