ARB Interactive to buy Publishers Clearing House in social gaming expansion
The move comes as sweepstakes attract regulatory scrutiny in the US.
US.- The social gaming firm ARB Interactive is to acquire the bankrupt direct marketing company Publishers Clearing House (PCH), known for its sweepstakes and contests. Pending court approval, it will pay $7.1m in cash and take on $378,000 in liabilities.
ARB, which owns Modo Casino, made the acquisition throug a bankruptcy auction following PCH’s Chapter 11 filing earlier this year. ARB CEO Patrick Fechtmeyer told Wall Street Journal that the company was enthusiastic about ushering in a new era for PCH, aiming to “deliver an experience that honors the legacy of the brand while earning the trust of a new generation of players.”
Founded in 1953, PCH distributed over $614m in prizes through its direct-to-consumer sweepstakes model. Originally established to sell magazine subscriptions via bulk mail, it transitioned to become a provider of free-to-play games and chance-to-win opportunities across digital platforms. At the time of its bankruptcy filing, PCH reported just under half a million dollars in cash and about $40m in outstanding debt.
Earlier in 2024, PCH entered a collaboration with SCCG Management to explore monetisation in social gaming. This agreement have PCH access to SCCG’s network of sweepstakes and gaming operators, as well as regulatory compliance advisory services.
ARB’s move comes amid heightened regulatory scrutiny of sweepstakes and social casino operators. Montana and Connecticut have enacted laws banning the dual-currency gaming model. A bill in New York is awaiting the governor’s signature, and a new bill was presented in California this week.
In 2023, the Federal Trade Commission began an investigation into PCH prompted by allegations of deceptive marketing aimed at vulnerable consumers. These included misleading subject lines and “risk-free” offers, which gave the false impression of improved odds. The company ultimately agreed to an $18.5m settlement and issued refunds to over 280,000 people.
ARB Interactive has joined the Social Gaming Leadership Alliance (SGLA), a coalition advocating for industry standards and led by VGW. PLAYSTUDIOS, Yellow Social Interactive and Nuvei are also members.
