How ClubWPT Gold Plans to Navigate California’s New Gambling Law

The Law That Forced the Issue

Like we said, Governor Gavin Newsom’s signature made it official: sweepstakes-based poker rooms operating under a dual-currency model will be outlawed in California at the start of the new year.

This includes Global Poker, Stake Poker, and just about all other major players that rely on players purchasing play-money tokens to receive redeemable sweepstakes coins. However, the new law doesn’t stop at operators. It also covers suppliers, affiliates, processors, and anyone else knowingly involved. With that kind of liability on the table, most sites are already preparing to cut ties with California.

And that’s exactly where ClubWPT Gold’s new FAQ comes in.

ClubWPT Gold Responds and Doubles Down

In a short but pointed update, ClubWPT Gold confirmed that it is “aware of the new California legislation” and has been “proactively making updates to the platform” to stay in line with the incoming restrictions. The site states it’s “committed to continuing to operate in compliance with California law.”

That’s a pretty firm stance, and a surprising one, considering nearly every other major sweeps poker site is preparing to leave the market.

So, How Is ClubWPT Gold Different from the Rest?

In the case of ClubWPT Gold, it’s not about the fine print as much as it is about their business model or rather, how it’s been redesigned. We’ve already talked about how ClubWPT Gold has been shifting away from the dual-currency setup that AB 831 targets.

They discontinued their traditional Gold Coins and Sweeps Coins, putting a new model centered around poker training in their place. Now, instead of buying play-money and getting sweepstakes entries as a bonus, players purchase Hand Analysis credits, which are basically tokens for a coaching tool. With those credits come “chips,” which can be used in tournaments and games. Those chips can still be redeemed for real cash, and players can still access them without making a purchase through alternative (no purchase necessary) methods.

But Is This Really Enough to Stay in California?

This is still very much an open question. AB 831 explicitly bans tokens that are obtained “with the purchase of a related product, service, or activity,”. Some could argue that ClubWPT Gold’s new approach still fits that description. Sure, players are buying hand analysis credits but those credits come with redeemable chips attached.

There’s also the issue of the law’s carve-outs: sweepstakes used for marketing, as long as they’re limited and incidental to the actual product being sold. Alone, that language is a little bit vague. The question is whether ClubWPT Gold’s “training first” approach will be seen as legitimate.

Meanwhile, the Exits Begin

While ClubWPT Gold holds its ground, the rest of the field is already on the move. Global Poker, Stake Poker, and others are expected to stop offering purchases to California players in the coming weeks. After that, short grace periods will likely follow for redemptions before accounts are shut down entirely.

As for what ClubWPT Gold does next, PokerListings, just like everyone else, will just have to wait and see.