Riot Games uncovers VALORANT match-fixing affair in China
Sharpr is a weekly newsletter covering the intersection of esports and betting
Hey everyone, Cody here.
This week we dig into a VALORANT match-fixing case uncovered by Riot Games last week, and what macro level trends we can take away from a situation like this.
Is esports riddled with cheating and match-fixing as much of the world understands? Maybe–but it also would depend on where you’re looking. According to ESIC’s integrity commissioner, most betting fraud in esports emanates from China and Eastern Europe, accounting for what he estimates is 85-90% of match-fixing.
Let’s dig in. And grab a glass of water while you’re at it–it’s hot as a hell out ☀️💧
In this week’s edition of Sharpr…
Riot Games uncovers VALORANT match-fixing affair in China
Odds On Compliance VP Eric Weiss says Atlantic City has the right infrastructure for esports to thrive
Slots has entered the top 10 most-watched categories on Twitch
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Riot Games uncovers VALORANT match-fixing affair in China
Riot Games has banned 13 players from participating in future sanctioned events following a match-fixing investigation of a Chinese VALORANT tournament.
On July 19, Riot Games issued a competitive ruling implicating members of Totoro Gaming, Underdog, and Invincible for violating several terms of its VALORANT Global Competition Policy associated with match manipulation for financial gain.
The investigation uncovered several instances of suspicious pre-match betting activity within the ImbaTV Fearless Invitational hosted online in July 2021.
Several members of Totoro Gaming were said to have received “monetary compensation” as a result of match manipulation efforts.
Impacted individuals have received penalties based on their level of culpability and cooperation with the investigation, with Riot Games dealing bans ranging in length from nine months to a lifetime.
In a statement, Riot Games reiterated its commitment to maintaining fair play across VALORANT esports:
“Maintaining the competitive integrity of VALORANT tournaments is Riot Games’ priority and such matters are taken extremely seriously. All players and coaches are expected to abide by the rules of fair play, and to observe the highest standards of personal integrity and good sportsmanship at all times. Unsportsmanlike behavior that violates the rules of fair play will not be tolerated by VALORANT Esports.”
🦈 Sharpr Take: These sanctions unfortunately represent just another brick in the esports industry’s checkered wall of betting fraud, particularly in regions abroad. Recent years have highlighted a number of different threats to esports integrity, from match-fixing to in-game exploits, with cases on the rise:
Riot Games uncovered its first case of match-fixing in June 2021, where two players competing in an Ignition Series match bet against their own team and encouraged teammates to participate in the scheme.
Multiple cases of spot-fixing and bug abuse in Counter-Strike: Global Offensive were flagged in May, and more than 100 players were found to have abused an in-game exploit during competitive CS:GO matches.
Australian police arrested two men in connection to a Chinese League of Legends match-fixing case.
In 2020, the Esports Integrity Commission identified 126 suspicious betting alerts, up from 46 the previous year.
During Nevada’s initial Esports Technical Advisory Committee meeting in March, Ian Smith, commissioner of the Esports Integrity Commission, highlighted China and Eastern Europe as repeat offenders in esports match-fixing cases.
"A lot of our problems emanate from China and Eastern Europe,” Smith said. "If we could eliminate match-fixing… from Chinese and Russian bettors, we would probably eliminate 85 to 90% of corrupt betting worldwide."
These days, it’s rare to see cases of match-fixing emerge from the world’s top esports properties. Most corruption is instead discovered in bottom-tier esports events, more often than not organized by small-time event operators in foriegn countries.
Smith acknowledged that the biggest obstacle for operators and regulators (and those generally unfamiliar with the industry) is whether or not esports events can be deemed safe to offer markets on. Myself and others in tune with the esports industry can say with a certain level of conviction which leagues and events fall into that category, while ESIC welcomes member organizations–including the likes of ESL, BLAST Premier, and WePlay Esports–to streamline that feeling of comfort for operators.
Interestingly, during an Esports Insider interview I conducted with Smith in 2020, he described a level of trepidation about marquee esports leagues such as the Overwatch League and Call of Duty League, purely from the standpoint of ESIC not having visibility into either property’s integrity guidelines. Without formal disclosures and direct insight from game publishers such as Riot Games and Activision Blizzard, Smith says establishing any independent assessment of a product’s safety “is very, very difficult.”
“What Blizzard is doing right now may feel to them perfectly adequate and good, but objectively may be garbage,” Smith said. “You don’t know for example Riot’s internal procedures with respect to integrity in League of Legends is – only Riot knows that.”
Roughly a year after that discussion, Smith was quoted as saying that ESIC is “getting wonderful cooperation from Riot and VALORANT” while investigating North American players suspected to be involved in fixing. That context would lend itself to the publisher engaging with esports’ watchdog more freely, and proactively supporting the safeguarding of its leagues.
But accepting or even acknowledging gambling in any form is a tough ask for most game publishers. The same companies have been mired by controversies since their inception, from video game addiction to the age-old debate connecting gaming to violence. Despite forward-facing integrity measures serving as a net-positive for practically all involved, association with a vice industry will likely impede a lot of meaningful progress.
🗞 In the news
Luckbox Director of Marketing Daniel Sanders shares insights on how to engage the esports audience.
Odds On Compliance VP Eric Weiss says Atlantic City has the right infrastructure for esports to thrive.
PandaScore Head of Sales Oliver Niner speaks to esports betting compliance and regulation.
📈 By the numbers
Underdog Fantasy has secured $35M in its latest funding round, valuing the company at $485M.
Slots has entered the top ten most-watched categories on Twitch, overtaking Call of Duty Warzone with 39M hours watched.
FanDuel, DraftKings, and BetMGM command more than 80% of U.S. mobile sports betting GGR.