Publishers Clearing House Acquired By Modo Casino Operator

ARB Interactive, a company that operates Modo Casino (a sweepstakes casino), has acquired Publishers Clearing House for $7.1 million and will assume other liabilities, including expenses and prize winnings, for $378,000. 

Additionally, ARB Interactive will also consider offering jobs to past PCH employees. When they went bankrupt in April, there were about 105 employees. 

More About the Deal and ARB Exec Comments

In acquiring PCH, ARB Interactive's Chief Executive, Patrick Fechtmeyer, stated that they're committed to “digitally transforming the business through mobile-first, interactive, and free-to-play games enhanced by the power of sweepstakes and prizes.”

Fechtmeyer also noted that Publishers Clearing House has expanded into apps and mobile games as part of its ongoing digital transformation.

“Pending court approval, we’re excited to begin this next chapter and deliver an experience that honors the legacy of the brand while earning the trust of a new generation of players,” Fechtmeyer said.

Interestingly, the second-highest bid came from a company called PCH Interactive. It was for $7 million in cash, assuming those same expenses. 

It's unclear, though, if PCH Interactive is connected to Publishers Clearing House. 

Background on Publishers Clearing House

Publishers Clearing House was founded in the 1950s in Long Island, New York. In those days, it was a direct mailing firm that would solicit subscribers for magazines. 

Later, it expanded into direct mailing for selling items such as collectibles, books, and more. 

Then, it entered the sweepstakes prizes, which began as direct mail and later evolved into its signature Prize Patrol, featured on TV. 

However, the FTC had concerns that people were making additional purchases in the hopes that it would improve their chances of winning PCH prizes. 

In 2023, PCH denied wrongdoing but settled with the FTC for $18.5 million. 

Due to that lawsuit and the closure of its e-commerce business, PCH was forced into bankruptcy. 

When it was declared, it had $490k in cash and $40 million in debt. 

In 2018, it had approximately $879 million in revenue, but this slowed significantly with the pandemic. 

Despite the bankruptcy declaration, the brand was still committed to awarding prizes. 

It paid out approximately $30,000 to prize winners weekly, but it owed $1.8 million to past winners. 

In court documents, it was revealed that PCH owed $26 million over the next 60 years to lifetime prize winners.