Deputy Editor
California Gov. Gavin Newsom signed anti-sweepstakes bill AB 831 into law, his office announced on Saturday.
The signing came a day before a deadline that would have seen the bill become law even without his signature. But Newsom’s ink gives the sweepstakes ban gubernatorial approval after it passed every legislative step of the process without receiving a single vote against.
The sweepstakes ban takes effect Jan. 1.
Prominent poker operators Global Poker, Clubs Poker, and ClubWPT Gold use the sweepstakes model. However, some lingering questions remain about the legality of the latter after it drastically pivoted its business model.
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Sweeps Opponents Rejoice as Industry Receives Biggest Blow Yet
AB 831 becoming law was all but certain given its decisive legislative movement. Only a veto could have saved the sweepstakes industry in California, and that looked like a serious longshot.
Now that the ink is dry and the ban has become official, prominent sweepstakes opponents are taking their victory laps.
“Sweepstakes gambling is dead in California,” rejoiced Victor Rocha, conference chair of the Indian Gaming Association, on X. “I knew the sweeps wouldn’t leave California without a fight. I just didn’t expect them to be so impotent.”
The passage of AB 831 represents by far the biggest blow possible to sweepstakes gambling operators. California’s combination of being the No. 1 U.S. state by population plus having no legal online gambling made it the most valued market in the industry.
Assuming a legislative ban in New York receives similar gubernatorial approval, the sweepstakes player pool will have lost approximately 30% of its market when 2026 rolls around.
Lingering Question: Can Operators Sidestep Ban Via Business Model Shift?
Perhaps seeing the writing on the wall when AB 831 cruised through multiple stages of legislative approval, game operators also began abandoning sweepstakes providers in recent months.
However, ClubWPT Gold, a popular poker site affiliated with the World Poker Tour that uses the sweepstakes model, decided to approach the oncoming ban in a different manner. It abandoned its Gold Coin account-funding system and changed to a business model based on AI poker training. As of Sept. 24, players fund their accounts via the purchase of what essentially amount to AI hand reviews. After each purchase, they receive Chips that work as site credit.
Notably, AB 831 defines “online sweepstakes games” as meeting the following criteria:
- Available on the internet or accessible on a mobile phone, computer terminal, or similar device
- Utilizes a dual-currency system of payment
- Simulates casino-style gambling
- Awards cash or cash equivalents
Will Hand Analysis Credits count as a form of currency? That question may decide whether ClubWPT Gold can ultimately remain legal in California.
Players probably won’t find out for a couple of months. If and when ClubWPT Gold can remain in operation in California, it’s a safe bet that other operators will also look for ways to pivot their business models and remain in compliance with local laws.
Image credit: Gage Skidmore/Flickr (license)
