Deputy Editor
On Friday, New York Gov. Kathy Hochul signed into law S5935A, officially banning sweepstakes products from the state.
The bill “clarifies that online real money ‘sweepstakes casinos’ constitute illegal gambling and establishes penalties for operating or facilitating unregulated online gambling.” It takes effect immediately.
The Social Gaming Leadership Alliance (SGLA), an advocacy group for the sweeps industry, claimed that banning sweepstakes operators will cost the state $80 million in annual tax revenue.
Poker operators such as ClubWPT Gold, Global Poker, and Clubs Poker use the sweepstakes model. Many sweepstakes operators had already left New York in anticipation of the bill’s passage into law.
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ClubWPT Gold Exits — What Does it Mean for California?
In response to Gov. Hochul signing the anti-sweeps bill, ClubWPT Gold immediately announced an exit from New York.
“Any player, regardless of residency, physically located in the state of NY will not be able to login to our site,” the update reads.
ClubWPT Gold goes on to explain that player balances are safe and will be honored, but players must access from an approved jurisdiction in order to cash out.
While ClubWPT Gold’s exit from New York might seem like a foregone conclusion given the bill’s passage, it’s still notable in light of the change in business model the site underwent just a couple of months ago. ClubWPT Gold adjusted its business model away from a traditional “dual-currency” system.
Previously, players purchased free-to-play currency (“Gold Coins”) and were awarded matching site credit (“Sweeps Coins”), which functionally allowed real-money poker. In September, ClubWPT Gold switched to awarding site credit (“Chips”) in exchange for players purchasing what amounted to AI poker hand reviews (“Hand Analysis Credits”).
The hope, it seemed, was that the new model would allow ClubWPT Gold to stay on the right side of the legal line in states specifically banning dual-currency sweepstakes gaming.
California, the most important market for sweepstakes operators, passed a ban on the industry that takes effect Jan. 1, 2026. In the weeks that followed, ClubWPT Gold insisted it planned to continue operating in California.
The fact that ClubWPT Gold immediately left New York after Gov. Hochul’s stamp of approval can’t be considered a positive omen for its future in California, regardless of the site’s own proclamations. Actions speak louder than words in this case.
More States Ponder Sweeps Bans
Gov. Hochul’s signature on the anti-sweeps bill was the latest in a series of legislative measures targeting the industry across various U.S. states. And it doesn’t appear likely to be the last.
On Dec. 5, Indiana’s Assembly introduced HB 1052. Alongside “various administrative law matters,” it imposes civil and criminal penalties for running anything it defines as a “sweepstakes game.”
The bill is a bipartisan effect and would make dual-currency sweepstakes operators subject to fines of up to $100,000.
In Maine, State Sen. Craig Hickman sponsored LD 2007, “An Act Regarding the Prohibition of Online Sweepstakes Games.”
Following the California ban, PokerScout projected the sweepstakes player pool to shrink by roughly 30% when various impending bans became law. That did not include Maine, Indiana, or Tennessee, which recently hit a number of prominent operators, including Global Poker, with cease-and-desist letters.
With legislative momentum continuing to turn against the operators, the future of sweepstakes poker and gambling in the U.S. looks more bleak by the month.
Image credit: MTA/Flickr (license)
