There’s definitely selection bias (LoL loses some number of players on its deplorable culture). But overall, they’ve been growing their userbase year over year. That’s a big reason they don’t seem to give a shit about their reputation. It doesn’t seem to cost them much.
Lots of social media and big market gaming has this problem of 4chan-ification. Costs way more to police than you can earn from policing, unless there’s state regulation (akin to the FCC) on what you’re distributing.