Deputy Editor
ClubWPT Gold will discontinue its use of the play money Gold Coin (GC) site currency, while continuing to allow Sweeps Coin (SC) play. The move is likely a response to sweepstakes gaming bans passing in New Jersey and elsewhere, many of which specifically target the “dual currency” model.
Although removing Gold Coins means the site can no longer be considered dual currency, it leaves players without any way to obtain significant quantities of SCs. Players can continue to play with their existing balances and redeem SCs for cash prizes as before, but the number of SCs in the system will inevitably decline until ClubWPT Gold finds a new way to let players get more. The site has hinted that a new business model is coming while remaining cagey about the specifics.
In an email sent to players, ClubWPT Gold announced that they were removing GC ring games and tournaments as of Sept. 17.
“While we’re removing the Gold Coins, we’re adding a game-changing new feature to ClubWPT Gold,” the announcement said. “Stay tuned for more about that.”
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How Gold Coins Work on ClubWPT Gold
ClubWPT Gold operates on a sweepstakes model. Players who wish to play on the site purchase GC, which has no monetary value. It’s only used for the free-to-play games on ClubWPT Gold.
The operator then awards their accounts a matching amount in Sweeps Coins (SC). Players then use the SC to play poker before redeeming whatever SCs they win for dollars. From the players’ standpoint, it feels a lot like playing real-money poker, but legally speaking, it’s a play-money social gaming site with an attached promotional sweepstakes.
Most poker players are understandably focused on SC with little to no regard for their GC. After all, the GC is simply a byproduct of their ticket to play poker on the site. The SC have the potential to win real money, which is every poker player’s goal. Players with ample SCs in their account may not immediately be affected by the removal of GCs. However, without the GCs, the only ways to obtain new SCs are to write in for “free entries” or wait for promotional giveaways, both of which provide only tiny amounts of SC.
Already, the announcement has produced some panic in poker communities like Reddit, including speculation that the site is “going rogue” or that its days are numbered. However, a lot depends on what ClubWPT Gold’s next move is.
How Will ClubWPT Gold’s Business Model Pivot?
That begs the question of what ClubWPT Gold will do to pivot its business model. As the time of writing, no clear answer exists. Presumably, the “game-changing new feature” referenced above will provide clarity.
The announcement that ClubWPT Gold will discontinue Gold Coins comes at a time of extreme legal turbulence for the company and the sweepstakes gambling industry at large.
New Jersey recently passed legislation banning sweepstakes gaming. California is on track to do the same, with one sweepstakes opponent saying he’s “100% certain” the bill will become law. Based on the bill’s swift progress, it’s difficult to see a case that he’s wrong.
ClubWPT Gold competitor Global Poker announced an impending exit from Canada.
In the cases of New Jersey and California, the anti-sweepstakes legislation specifically delineated the banning of “dual-currency” products. If ClubWPT Gold brass sees the writing on the wall that more such bans are coming down the pipe, it behooves them to come up with a business model that doesn’t involve dual currencies.
The announcement that GC will disappear for good on Sept. 17 indicates they’ve found a pivot, but customers will have to wait for the specifics.
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