Esports Betting Integrity Faces Ongoing Scrutiny

Key Takeaways

• ESIC enforces sanctions against multiple players and teams for match-fixing, underscoring the need for robust anti-corruption measures in global esports betting markets.
• Regulatory bodies in Europe and APAC tighten licensing requirements for esports operators, aiming to enhance consumer protection and market transparency.
• Publisher policy shifts, including Riot Games' sponsorship guidelines, balance commercial growth with competitive integrity in betting partnerships.

ESIC Imposes Sanctions on ATOX Esports Roster

The Esports Integrity Commission (ESIC) has concluded its investigation into match-fixing allegations involving ATOX Esports, a prominent CS:GO team, resulting in sanctions against several players. The probe, initiated after statistical anomalies in a January 2025 fixture against Team Falcons, uncovered evidence of deliberate underperformance. ESIC issued notices of charge in February 2025, leading to provisional suspensions in March. On April 15, 2025, formal enforcement actions banned implicated players for periods ranging from 12 to 36 months, prohibiting them from ESIC-sanctioned events.

This case highlights vulnerabilities in emerging esports markets, particularly in regions with high betting volumes like the Middle East, where ATOX operated. For betting operators, it reinforces the importance of monitoring odds irregularities to mitigate risks of voided wagers and reputational damage. ESIC emphasized that such actions protect the $2.5 billion global esports betting sector from integrity threats.

Source: ESIC

Riot Games Opens Betting Sponsorships with Guardrails

Riot Games announced the approval of betting sponsorships for tier-one League of Legends and VALORANT esports teams, marking a strategic pivot to monetize the growing betting interest in its titles. The policy, detailed in a recent update, allows licensed operators to partner with teams while imposing strict guardrails: teams must disclose sponsorships, avoid influencing match outcomes, and adhere to ESIC integrity codes. This comes amid VALORANT's closed beta launch on September 9, 2025, which is expected to boost live betting volumes.

The move impacts operators globally, enabling deeper integration into Riot's ecosystem, which generates over $500 million in annual esports revenue. In regions like EU and APAC, where Riot's leagues dominate, it could expand market access but requires compliance with local gambling laws, such as the UK's Gambling Commission standards. Stakeholders view this as a balanced approach to capitalize on esports betting's projected 15% CAGR through 2028.

Source: Riot Games

UK Gambling Commission Updates Esports Licensing Rules

The UK Gambling Commission introduced revised licensing criteria for esports betting operators, effective September 10, 2025, focusing on enhanced age verification and responsible gambling tools tailored to fast-paced titles like Dota 2 and Overwatch. The updates mandate real-time monitoring of in-play bets and partnerships with integrity bodies like ESIC to flag suspicious activity. This follows a surge in esports wagers, with UK volumes exceeding £300 million last year.

For operators, these changes mean investing in AI-driven compliance systems, which may increase costs but reduce fines—recent penalties totaled £20 million for non-compliance. Globally, this influences APAC and Lat Am markets emulating UK standards, promoting safer betting environments and sustaining trust in a sector where 40% of bettors are under 25. The Commission noted the rules address esports' unique risks, such as rapid match progression.

Source: UK Gambling Commission

Australian Regulator Bans Unlicensed Esports Betting Sites

Australia's eSafety Commissioner, in coordination with state gambling regulators, blocked access to 15 unlicensed esports betting platforms on September 12, 2025, targeting operators offering markets on titles like Fortnite and Apex Legends without local accreditation. The action, part of a broader crackdown, cites violations of the Interactive Gambling Act, with fines up to AUD 1.1 million per offense. Affected sites, mostly APAC-based, facilitated anonymous betting via crypto, evading traditional oversight.

This enforcement bolsters Australia's regulated market, valued at AUD 500 million for esports, by redirecting users to licensed providers, such as Sportsbet. It signals a trend in Latin America and the EU for similar geo-blocks, impacting cross-border operators and emphasizing the need for jurisdictional compliance. Industry analysts predict that this could reduce match-fixing incentives by limiting the flow of unregulated funds into competitions.

Source: eSafety Commissioner