Publishers Clearing House Collapse Leaves Veterans Unpaid as New Owner Faces Sweeps Casino Scrutiny

Publishers Clearing House (PCH) has long symbolized sweepstakes culture in the US with its Prize Patrol delivering oversized checks to competition winners. Now, as the brand has filed for bankruptcy and a sweepstakes casino operator has been appointed as its new owner, it has left some of its winners, including disabled veterans, without the life-changing payouts they were promised.

At the same time, its new owner, ARB Interactive, which operates sweepstakes casino Modo, is facing increased regulatory and legislative scrutiny in multiple states.

Bankruptcy Ends ‘Forever’ Prizes for Past Winners

At its peak in 2018, PCH generated nearly $880 million in revenue from mail catalogs, magazine subscriptions, and sweepstakes. But changing consumer habits and the pandemic have damaged its business.

That led to PCH filing for Chapter 11 bankruptcy in April. The company listed debts of over $65 million against assets of less than $12 million.

The bankruptcy filing occurred less than a year after the company agreed to a $18.5 million settlement with the Federal Trade Commission, resolving charges that it misled consumers about its sweepstakes and online games.

The financial troubles have left many winners without their promised prizes. Among those are Tamar and Matthew Veatch, disabled veterans from Oregon. In 2021, Tamar Won PCH’s “$5,000 a Week Forever” prize, which equated to just under $200,000 annually after tax.

When their payment did not arrive in February, the Veatches reached out to PCH, which stated it would pay it in July. However, it never did.

In the April bankruptcy filing, PCH listed 10 prize winners among its largest unsecured creditors. Eight of them were owed more than $2 million each.

Darrell Lester, a retired PCH executive, says the company used to protect prize winners by purchasing prepaid annuity products from banks or insurance companies under the winners’ names. However, it stopped doing so at one point after Lester’s retirement.

“You can’t tell somebody you won $10 million and then take it away from them,” Lester told The Wall Street Journal.

“This is the worst thing in the world that Publishers Clearing House could do.”

Sweepstakes Casino Operator Takes Over

In June, ARB Interactive acquired PCH for $7.1 million plus expenses. ARB is already in the sweepstakes space through Modo Casino, a sweepstakes casino that uses a dual-currency model, one to play for free and one to enter sweepstakes.

ARB says it will honor prizes awarded after July 15, 2025. Past winners, however, including the Veatches, will have to seek payment from the bankruptcy estate.

ARB has confirmed its responsibility for two large prizes being currently promoted, together worth $2.5 million. The company will also pay up to $975,000 in annuity prizes awarded in May.

Regulatory Clouds Gather Over Sweepstakes Casinos

ARB’s acquisition comes at a time when sweepstakes casinos are facing mounting challenges. Many lawmakers and gambling regulators have questioned the dual-currency model, suggesting it constitutes illegal gambling.

Several states, including Montana, Connecticut, Nevada, and New York, have passed legislation banning the platforms. In New Jersey, a ban passed in June became law automatically on August 15 after Gov. Phil Murphy declined to act within the 45-day window.

Louisiana’s Legislature also passed a ban bill, but Gov. Jeff Landry vetoed it, stating it was unnecessary. The state has since taken a regulatory approach through cease-and-desist orders, with many operators complying.

Arizona, Mississippi, Maryland, and other states have also implemented a similar approach. Additionally, there are over 50 active lawsuits against sweepstakes operators. However, they have not scared the platforms. Most continue to accept players even in states like Alabama, where there are over a dozen lawsuits.

Trust at Stake

The heightened scrutiny means ARB not only has to rebuild PCH’s brand reputation. It also has to navigate a shifting legal landscape that could jeopardize its core business model.

For millions, PCH was not only about sweepstakes, it was a trusted brand embedded in pop culture.

While ARB has promised to modernize PCH for a mobile-first audience, its sweepstakes casino ties may invite further scrutiny from regulators already skeptical of the model.