No other game company bans toxicity like League does. Why? Because they make you use the mute button.
This is not completely true. Blizzard recently banned one of their pro players on Overwatch for toxicity. In World of WarCraft you can also be banned for excessive toxic behavior---death threats, continued/reported and flagrant hate speech, etc. Although Blizzard's punishment tiers take much longer to reach especially in WoW. Nevertheless, if you are toxic in Blizzard games you can get either muted or banned (temporarily or permanently).
The problem is two-fold for League though.
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League has the reputation among gamers for having the worst community. While this may not have been the case when I started playing in 2011, it is absolutely true now. The old saying goes that "perception is reality" and Riot has to be aggressive in fighting back against this monumental issue of degenerates within their community or they risk losing even more players (especially veterin players such as myself).
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The new player experience is Hell and most of my friends that I try to get to play this game absolutely will not because of the steep learning curve and the fact the community is completely unforgiving and unrelenting to new players.
It's definitely a candle burning at both ends and Riot needs to take a rather firm stand on the issue. Unfortunately the very design of their Free-to-Play model makes it difficult to get rid of players permanently as new accounts are simple to make or level 30 accounts are very affordable to purchase. Once you no longer have anything to lose it is much easier to become a toxic player. Therein lies the problem.