ARB Interactive Acquisition Leaves Past PCH Winners Without Payments

Bankruptcy Ends Legacy Payouts

PCH filed for Chapter 11 bankruptcy in April, listing liabilities between $50 million and $100 million, including $26 million in lifetime prize obligations. Company assets were valued at no more than $10 million. Ten prize winners were among its 20 largest unsecured creditors.

The bankruptcy halted payments that had been part of PCH’s long-standing sweepstakes model, including “$5,000 a week for life” awards that helped make the company a household name.

In July, mobile gaming platform ARB Interactive acquired PCH assets for $7.1 million, rebranding operations under “PCH Digital.” The agreement excluded responsibility for prizes awarded before July 15, with the exception of two unawarded “SuperPrizes.”

ARB has pledged to restore trust in the brand by implementing a new payout structure, designed to ensure future winners are paid regardless of corporate finances. Past winners, however, remain outside the scope of the commitment.

Winners React to Lost Income

For many, the loss of payments has created immediate hardship. John Wyllie, who won $5,000 a week for life in 2012, told CNN affiliate KGW that he has already missed checks.

“This feels like a nightmare. I thought this was going to go on for the rest of my life, so I didn’t really have to worry about money,” Wyllie said. “Pretty sure I’m going to lose my home.”

Matthew and Tamar Veatch, who won a similar prize in 2001, said the change leaves them struggling.

“You change people’s lives, and now, you messed it up,” Tamar Veatch said.

“The big letdown for me is that we trusted them,” added Matthew Veatch.

Decline of a Cultural Icon

Founded in 1953, PCH became part of U.S. popular culture with its televised Prize Patrol and oversized checks. But revenues fell sharply, from $854 million in 2017 to $182 million in 2023, as national lotteries like Powerball attracted larger audiences with billion-dollar jackpots.

Shifts in consumer behavior and costly regulatory settlements further weakened the business. Despite efforts to pivot to digital marketing, the company could not sustain its financial obligations.

ARB Interactive says its focus is on building a sustainable foundation for the brand’s future. By separating new prize funding from company finances, it aims to prevent another collapse of promised payments.

For past winners, though, the merger marks a permanent end to obligations they expected for life.