It’s now official — California will not be allowing online sweepstakes poker or other sweepstakes gaming. Over the weekend, Governor Gavin Newsom signed AB 831, a bill that explicitly bans any form of gambling utilizing a dual-currency format under sweepstakes law.
Although the law will not come into effect until January 1, 2026, it effectively marks a dead end for sweepstakes poker in the state. Sweepstakes operators will have no choice but to exit the California market or face repercussions.
However, ClubWPT Gold (CWG), one of the largest sweepstakes poker operators, has made it clear that it intends to stay in California. At least, that’s what the operator is saying — and its recent updates suggest it plans to continue operating even after the new law takes effect next year.
The operator published a new FAQ on its website, explicitly stating that it will continue to serve California players.
“We are aware of the new California legislation scheduled to take effect on January 1, 2026,” the operator wrote on its website. “In preparation, our team has been proactively making updates to the platform and developing new features to align with the upcoming legislative change.”
“We are committed to continuing to operate in compliance with California law,” it added.
Pivoted to Beat California Ban?
This move to remain in California was not entirely unexpected. The main reason why ClubWPT Gold recently altered its business model in the first place was driven precisely by the need to stay active in California, a market that is not only the most populous in the US but also one of the wealthiest.
Losing access to California poker players would shrink its total addressable market by more than 10% and could cut revenue for them by as much as 20% or more.
ClubWPT Gold anticipated this change. The bill was introduced earlier this year, and the operator acted early to avoid losing one of its most lucrative markets.
To do so, it pivoted to a new business model, eliminating its dual-currency structure that used to rely on Gold Coins and Sweeps Coins.
For those unfamiliar with how online sweepstakes works — players typically make real-money purchases of play-money coins, which cannot be redeemed for cash and are used solely for play-money games. However, with each purchase, players receive Sweeps Coins, which serve as entries into sweepstakes games.
These Sweeps Coins can be used to participate in tournaments, ring games, or casino games, and winnings can be redeemed for real cash prizes. This system mimics real-money poker while staying within the legal framework of sweepstakes laws, even in states without regulated online poker or casinos, such as California.
This dual-currency sweepstakes model, introduced nearly a decade ago by Global Poker, gained tremendous traction over the past two years, attracting several new entrants to the market, including ClubWPT Gold, which only went officially live earlier this year. But the rapid growth of sweepstakes gaming in the US also caught the attention of regulators and lawmakers.
In response to growing concerns, many states have introduced legislation targeting sweepstakes-style gambling. Major states such as Michigan, New Jersey, and New York (whose bill now awaits the governor’s signature), along with smaller ones like Nevada and Connecticut, have taken steps to outlaw sweepstakes-based gaming. California is the latest to join that list.
Will ClubWPT Gold’s New Model Withstand the Law?
In anticipation, ClubWPT Gold appears to have developed a new operating structure that it believes remains compliant with the law. The operator has removed both Gold Coins and Sweeps Coins and rebranded itself as a poker training platform.
Under this new model, players purchase Hand Analysis (HA) credits that grant access to the site’s poker training service and a built-in GTO coaching tool. Alongside these purchases, players receive “chips” that can be used to enter tournaments and ring games.
Importantly, these chips can still be obtained through “no purchase necessary” methods, such as mailing a postcard, a key element of sweepstakes compliance, and they can still be redeemed for real money.
These updates appear to be the “proactive changes” referenced by the operator as part of its preparation for AB 831.
However, a plain reading of the bill suggests that even this revised model might fall under the new restrictions. The legislation defines prohibited tokens as those obtained “with the purchase of a related product, service, or activity,” which could still encompass the “training tokens” used by ClubWPT Gold.
That said, the law does include a carveout for sweepstakes conducted by for-profit entities “as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services.” Such sweepstakes must be “limited and occasional” and “not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
It seems likely that CWG has received legal guidance indicating that its updated model — or perhaps a further iteration still in development — can legally operate under California’s new regulations. The real challenge may be in convincing its third-party partners, including ambassadors like Doug Polk and payment processors, to share that same confidence.
Aside from ClubWPT Gold, three other sweepstakes poker sites currently operate in California — Global Poker, the pioneer of the dual-currency format; Clubs Poker; and Stake US. All three are expected to begin notifying players soon with timelines for their market exit.
Their withdrawal from California will likely unfold in phases. Initially, they will cease accepting new purchases or restrict access through geofencing. Next, they will announce final redemption deadlines for Sweeps Coins, followed by the closure of California player accounts.
But not ClubWPT Gold, it appears.
