California is preparing to ban sweepstakes poker: bill approved

The California Senate has approved a bill banning sweepstakes poker sites. Now the fate of online platforms depends on the governor's decision.

In California, online platforms using the “sweepstakes” model are on the verge of a complete ban after bill AB 831 was unanimously approved by the State Senate. Now, the fate of sites like ClubWPT Gold and Global Poker depends solely on the signature of Governor Gavin Newsom. If the governor signs this bipartisan bill, sweepstakes-based online casinos will become illegal in the largest state in the US. What is sweepstakes poker and why do they want to ban it? Sweepstakes platforms such as ClubWPT Gold and Global Poker use a legal loophole: players don’t buy chips, but special “Sweeps Coins” (SC), which can then be used to play poker and exchanged for prizes or cash. This approach allowed them to operate in jurisdictions where traditional online gambling is prohibited. However, California lawmakers believe this scheme violates the spirit of existing laws, which already prohibit: Online poker Online casinos Sports betting AB 831 aims to close this loophole and make it illegal to conduct, organize, or offer online games using the sweepstakes model. Violations are subject to criminal penalties as a misdemeanor: a fine of up to $25,000 and/or up to one year in jail. How the AB 831 vote went Bill AB 831 was introduced by Assemblymember Avelino Valencia (D). From April to August 2025, the bill passed eight votes without serious opposition. On September 11, the Assembly’s Standing Committee on Governmental Organization approved it by a vote of 20-2. In the final Assembly vote on August 29, 2025, 79 deputies voted in favor, with none opposed. The bill has now been sent to Governor Gavin Newsom for signature. He has until October 12 to sign or veto the bill. If signed, the ban will take effect starting January of next year. Industry and public organizations’ reaction The Social Leadership and Gaming Alliance (SGLA) expressed deep disappointment with the decision of California lawmakers. SGLA Executive Director Jeff Duncan noted that passing AB 831 could worsen economic inequality among California’s Native tribes, slow digital innovation in gaming, and deprive state residents of a popular form of entertainment. According to SGLA, the bill will immediately remove $1 billion from the state’s economy. Jeff Duncan called on Governor Newsom to veto the bill and, instead of a ban, support the development of online social games that could generate income for economically vulnerable tribes and help California lead in gaming technology. “This is an incredibly disappointing decision for all parties,” Duncan emphasized. Context: sweepstakes model bans in other states California is not the first major state to seek a ban on the sweepstakes casino model. In June 2025, New York Attorney General Letitia James and the New York State Gaming Commission sent cease-and-desist orders to 26 online casinos using the sweepstakes model. Other states are also tightening regulations. ClubWPT Gold already ceased operations in Louisiana and Connecticut last week, and left New Jersey several months earlier. In Nevada and a number of other states, measures are being discussed that could also lead to a ban on the sweepstakes model. Quick reference: how sweepstakes poker works Sweepstakes platforms offer players the chance to buy virtual coins (Sweeps Coins), which are used to enter poker tournaments and cash games. Unlike traditional poker rooms, where players pay buy-ins with real money, here the purchase of Sweeps Coins is not formally considered a wager, allowing these sites to bypass online gambling bans. The coins won can later be exchanged for cash prizes. The popularity of such platforms grew this summer thanks to a high-profile ClubWPT Gold promotion: the winner of a World Series of Poker (WSOP) qualifier tournament was offered a $1,000,000 bonus. This promotion made headlines after contest winner Jesse Yaginuma won the Millionaire Maker tournament, and his heads-up opponent James Carroll reportedly intentionally lost some chips to split the bonus. What players and operators face if the law passes If the governor signs AB 831, all online services using the sweepstakes model will be required to cease operations in California. Players will only be able to continue playing for a short time after the law takes effect—most likely until January 2026. Violating the law will be punishable by a fine of up to $25,000 and/or up to one year in jail. This applies to both individuals and companies offering such services to state residents. Main provisions of AB 831 Ban on organizing, conducting, and offering online games using the sweepstakes model Penalties—up to one year in jail and/or a fine of up to $25,000 The law takes effect after the governor’s signature, with a deadline of October 12, 2025 Applies to all sites using Sweeps Coins What this means for PPPoker club players For PPPoker club members, this news is an important signal about trends in online poker regulation in the US. Even if your club does not use the sweepstakes model, stricter laws in major states can affect the entire market: operators will be more cautious about jurisdictions, and players should be careful when choosing sites to play for real money. If you play in PPPoker clubs, it’s important to remember: the platform operates on a “play money” model and does not offer direct cashouts, which distinguishes it from sweepstakes sites. However, any attempts to bypass restrictions through third-party services can lead to account suspension or even legal consequences. In light of recent events, we recommend closely monitoring changes in your region’s laws and choosing only reputable clubs and platforms that comply with local regulations. PPPoker will continue to keep its players informed about the most important changes in the world of online poker.