The World Poker Tour brand is preparing to enter the sweepstakes poker market in the United States and Canada with its new platform, ClubWPT Gold.

This bold move follows the success of similar sweepstakes-based poker models, such as VGW Holdings’ Global Poker brand, which has managed to operate legally in regions where traditional online gambling is prohibited.

ClubWPT Gold’s Launch Plan

ClubWPT Gold is set to launch a real-money online poker platform based on the sweepstakes model – which that will be accessible in 46 U.S. states (excluding Idaho, Michigan, Montana, and Washington) and Canadian provinces (except Quebec).

The site will operate under a sweepstakes model, offering players two types of virtual currencies:

• Gold Coins: Used for free play, these coins have no real-world value and provide an opportunity to enjoy the games without spending money.
• Sweeps Coins: These can be obtained through promotions or as a bonus when purchasing Gold Coins. Sweeps Coins can be redeemed for cash prizes, allowing players to participate in a form of real-money poker without violating gambling laws.

This approach has gained popularity because it allows poker enthusiasts to engage in games for cash prizes legally, bypassing traditional online gambling regulations.

Pre-Registration and Launch Timeline

Pre-registration for ClubWPT Gold is now open, with an invite-only preview of the platform set for December 2024.

A full public launch is expected in Q1 2025 according to PokerIndustryNews.com.

$5,000,000 Freeroll Event During Launch

To mark its entry into the sweepstakes online poker market, ClubWPT Gold announced on X (formerly Twitter) that it will host a $5,000,000 freeroll tournament at the WPT Wynn Championship in Las Vegas this December, with a $1,000,000 prize for first place, a consolation prize for the top 500 finishers (where 1 in 5 will win a live poker tournament entry worth $10,400) as well as a mystery bounty component. The final table will be televised.

“Our return to Wynn Las Vegas this December is equipped with another monumental investment into the development and growth of not only the WPT World Championship but the poker industry as a whole,” said WPT CEO and President Adam Pliska. “In celebration of the launch of ClubWPT Gold, we’re aiming for another first for the poker world with the largest freeroll ever offered.”

The Success and Scrutiny of the Sweepstakes Model

The sweepstakes model has become increasingly prevalent in the online gambling landscape, with VGW Holdings’ Global Poker serving as one of the most notable examples. Global Poker has managed to operate legally in the U.S. by using the same model as ClubWPT Gold, where players use Gold Coins and Sweeps Coins to participate in poker and casino games. However, the success of this model hasn’t gone unnoticed by regulators.

Regulatory Scrutiny and Legal Challenges

While sweepstakes gambling provides a legal alternative to online gambling, it has faced significant regulatory scrutiny:

• State-by-State Legality: The sweepstakes model’s legality varies across states, with some expressing concerns about whether it constitutes unregulated gambling. This has led to certain platforms restricting access in states with stricter regulations.
• Consumer Protection Issues: Critics argue that the line between sweepstakes and gambling can be blurred, especially when real money is indirectly used to acquire Sweeps Coins. This has led regulatory bodies to emphasize the need for transparency and fair play.
• Legal Actions: In June 2024, VGW Holdings faced a class action lawsuit in the state Georgia, alleging that its sweepstakes gambling operations violated local gambling laws.

Federal Oversight and Industry Reactions

Although gambling regulations are primarily handled at the state level, there have been discussions about the need for federal oversight to establish consistent guidelines for sweepstakes gambling.

The American Gaming Association (AGA) has recently called for more scrutiny of sweepstakes gambling sites, arguing that they circumvent U.S. gambling laws and evade state taxes on revenues generated via gambling.

Natasha Lyndon

Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.