Well, according to deductive reasoning, if someone enjoys league so much, they may make another account, and spend money on there to get their skins back.
And if those people don't reform, they'll just get banned again - and with more of their money having essentially gone to waste, I'm willing to bet that, in the off-chance that they do come back, they'll not be spending money again.
You will find no business that makes money specifically by doing a disservice to their customers, and anyone in their right mind knows that it's not even close to a viable business practice.
Of course, most people that are perma banned never return, but there are those few that do.
So then you have a small percentage of players who get banned, a small percentage of players who come back, and an even smaller percentage who are willing to drop more money on a game they just got banned from. Sure, a small percentage of millions of players isn't actually all that small, but, what about a small percentage of a small percentage of a small percentage? Something that I'd say might only number in the hundreds.
Why does that matter?
ALSO, do not tell me that Riot doesn't care about the money.
Because Riot doesn't care about the money from banned players. They make up only a fraction of Riot's income from League purchases, so, compared to the millions of other players who don't get banned - Riot has no reason to care about the money being thrown their way by players who were banned and didn't get the point.
...with one main goal in mind: Make more money. That's with every company. They most certainly would not work on the game, and provide more content, for free.
Of course Riot's going to still want money, but they get their money by pleasing the playerbase at large, not milking a few spendthrift players who can't follow the rules. Working on the game doesn't relate to banning players, and neither does providing more content.
Of course, I'm sure when they ban someone, they aren't thinking of making more money.
...And, now, you contradict the main argument you're trying to defend. If they aren't thinking of making money by banning someone, then, according to deductive reasoning, they don't care about the money the banned player would give them, and they don't view banning players as a way to make money.
More times than less, they are probably losing on potential sales...
Exactly my point. Why would they do something that would certainly lose them potential sales as a way to try and get more money? It doesn't make sense.
The only way "banning = money" would be true is rephrasing the argument to add missing variables, like so:
Banning rulebreakers leads to those who follow the rules being happier with the game, and thus more likely to pay money for the content Riot makes.