More like the colleges are realizing that there is another bumper crop of highly marketable kids that they can exploit for multi-million dollar TV and streaming deals where they don't have to pay the players anything at all. I am waiting for the NCAA's drool to start accumulating over another pool of exploitable labor.
Otherwise this is pretty good for eSports. This can serve as a recruitment ground for skilled players as skills rarely port well from the general ladder to competitive team play. Also, as League of Legends is legally recognized as a sport in the US this might allow people to apply for visas and scholarships.
And for the people who will inevitably flood this comments section with nonsense about how eSports isn't a real sport please just stop. No one cares if they are real sports by a definition that is arbitrary to begin with, and they certainly don't want to hear your opinion about it in your relentless pursuit of overdefinition.