Publishers Clearing House Purchased by Sweepstakes Casino Operator at Bankruptcy Auction

^{The same company known for the iconic Prize Patrol doorstep sweepstakes has been recently acquired by sweepstakes casino operator ARB Interactive for over $7 million in cash. (Photo: JL Sousa / Zuma Press)}

ARB Interactive, the company that operates the Modo Casino online sweepstakes casino site, has purchased the assets of Publishers Clearing House at a bankruptcy auction.

ARB won the company with a bid of $7.1 million in cash. The company will also take on $378,000 in existing expenses as well as assume some prizewinner liabilities.

FTC Settlements Leads to Publishers Clearing House Bankruptcy

Publishers Clearing House (PCH), which was founded in 1953, was a direct-to-consumer marketing firm that operated the well-known Prize Patrol sweepstakes, which was heavily advertised in television commercials. 

However, the Federal Trade Commission alleged that PCH had misled customers in multiple ways. Along with charging that the company suggested that buying products would improve their chances of winning or make them eligible for prizes, the FTC also said that PCH sent emails with deceptive subject lines that led customers to believe the emails were related to official documents. It also claimed that PCH used deceptive practices when charging shipping and handling fees and advertising “risk-free” orders.

While denying the allegations, PCH ultimately reached an $18.5 million settlement with the FTC in 2023. In April 2025, the FTC sent that money as refunds to consumers it said were harmed by misleading claims.

According to PCH, that settlement, along with a loss in revenue due to the company’s e-commerce business, were the primary factors in its decision to file for bankruptcy in April. PCH had 105 employees at the time of that filing.

Judge Martin Glenn held a hearing in the US Bankruptcy Court in Manhattan on Monday and approved the sale. PCH Interactive LLC has been designated as the back-up bidder. It’s unclear what, if any, relation PCH Interactive has with Publishers Clearing House. 

Sweepstakes Casinos Under Fire in United States

As the owner of a sweepstakes casino site, ARB Interactive is already familiar with one of the major aspects of the PCH business model. According to CEO Patrick Fechtmeyer, ARB plans to utilize “mobile-first, interactive, and free-to-play games enhanced by the power of sweepstakes and prizes” to transform PCH.

“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 in a statement. 

The purchase of PCH may allow ARB Interactive to diversify at a time when sweepstakes casinos find themselves under fire by state governments across the country. 

In recent weeks, both Montana and Connecticut have passed laws explicitly banning the operation of sweepstakes casinos. Many other state legislatures have also taken steps in that direction with various levels of movement, including a Louisiana bill that made it all the way to the governor’s desk before receiving a veto. 

The Social and Promotional Games Association (SPGA) has blasted these bills, including another potential ban in New York, which is now waiting on a signature from Governor Kathy Hochul. 

“This bill doesn’t just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation,” an SPGA spokesperson said in a statement.