Publishers Clearing House Taps New CEO, Unveils Prize Safeguards as Old Debts Linger

Publishers Clearing House (PCH) is seeking to reinvent itself after a bruising summer marked by unpaid winners, lawsuits, and regulatory scrutiny. On September 30, the sweepstakes brand announced a new CEO and unveiled a Prize Protection Program that it claims will guarantee that all future prizes are paid.

The changes are part of a broader reset under ARB Interactive, which acquired PCH in June through a court-approved bankruptcy sale. However, with many “forever” prize obligations excluded from the deal and ARB’s sweepstakes casino business under pressure, skepticism persists over whether the relaunch is a genuine fix or a carefully constructed firewall.

A New CEO With Gaming & Tech Pedigree

PCH named Owen O’Donoghue as its new CEO. O’Donoghue brings more than 15 years of experience in gaming and technology. That includes serving as Director of Gaming at Facebook/Meta, holding leadership roles at Microsoft, and co-founding the blockchain gaming startup InfiniGods.

“Owen O’Donoghue’s expertise in gaming and digital engagement makes him the perfect leader to guide PCH into its next chapter,” said Patrick Fechtmeyer, CEO of ARB Interactive, in a press release.

“His proven ability to drive innovation and build consumer trust aligns seamlessly with our mission to reimagine PCH as a leader in mobile-first, advertising-supported entertainment while honoring its iconic sweepstakes tradition,” added Fechtmeyer.

In announcing his appointment, O’Donoghue said his focus will be on blending “PCH’s storied heritage with innovative, free-to-play gaming experiences integrated with ARB’s flagship platform, Modo.”

The company also made clear that it intends to evolve PCH into a “mobile-first, advertising-supported entertainment platform.” That positions the brand less as a traditional sweepstakes company. Instead, it will be more of a digital content platform that ties into ARB’s broader ecosystem.

The Prize Protection Program

The centerpiece of PCH’s reinvention is the new Prize Protection Program. According to the company, it secures prize funds in FDIC-insured accounts and invests in investment-grade assets through a bank-managed investment vehicle.

PCH describes the program as a “bankruptcy-remote structure.” It aims to ensure that winners are paid, even if the company or its parent encounters financial difficulties.

“The Prize Protection Program secures all future sweepstakes prizes and ensures the prizes we advertise are the prizes we deliver,” O’Donoghue said.

The program only applies to prizes awarded after July 15, the closing date of ARB’s acquisition of PCH assets.

A Collapse Still Casting Shadows

The Prize Protection program ensures protection for future winners. Still, past prize winners, including those with “forever” prizes, won’t be so lucky.

In its April bankruptcy filing, PCH listed debts exceeding $65 million against assets valued at less than $12 million. Additionally, PCH listed 10 prize winners among its largest unsecured creditors. It owed eight of them more than $2 million each.

After taking control of PCH, ARB confirmed it will pay the two large prizes that PCH was promoting at the time, together worth $2.5 million. The company also said it will pay up to $975,000 in annuity prizes awarded in May. However, earlier prize winners won’t receive their checks.

While it aims to eliminate past scenarios, ARB has effectively confirmed once again that it will not take responsibility for past prizes.

ARB & Modo Casino Connection

ARB framed the PCH acquisition as an opportunity to combine an iconic American brand with its Modo Casino platform, which uses the widely adopted dual-currency model. Earlier reporting indicated that ARB aimed to leverage PCH’s brand recognition within its sweepstakes ecosystem.

However, Modo faces regulatory and legislative challenges that are reducing its footprint and, consequently, ARB’s revenue stream. The sweepstakes casino has now exited at least 15 states. Most of these exits have occurred within the last several months.

It also faces a likely exit from California, the nation’s largest state and biggest market for sweepstakes casinos. The state’s Legislature recently passed a ban on sweepstakes casinos, which now awaits a signature from Governor Gavin Newsom.

The increasing pressure stems from arguments that sweepstakes casinos operate as unlicensed gambling platforms, rather than legitimate sweepstakes companies.

If the PCH relaunch stumbles, it could add pressure to an already stressed business model.

Outlook: Rebuilding Trust, One Payout at a Time

For PCH, the challenge now is less about legal structures and more about consumer trust. Oversized checks and televised prize patrols built decades of popularity. However, the bankruptcy and collapse of “forever” prizes revealed how quickly fortunes and legacies change.

Prize protections and new leadership may help ARB stabilize the brand, but it must also rebuild PCH’s reputation. If significant payouts under the Prize Protection Program are seamless, PCH may begin to regain credibility.

If not, the $7.1 million rescue could quickly become another liability for ARB Interactive. That’s on top of growing Modo pressures.