Publishers Clearing House (PCH) has named former Facebook Director of Gaming Owen O’Donoghue as its new CEO, three months after mobile and social gaming company ARB Interactive acquired the sweepstakes company and amid an ongoing controversy about unpaid prizes.
O’Donoghue spent his time at Facebook working with gaming companies across North America and Europe on strategic partnerships. ARB Interactive said he will lead a vision to revitalize the PCH brand with a mobile-first strategy and what the company called an approach rooted in trust and transparency. He will also be responsible for marrying PCH’s history of running the Prize Patrol sweepstakes contest with the mobile social gaming experiences offered by ARB’s Modo Casino.
“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 ARB Interactive CEO Patrick Fechtmeyer.
ARB Interactive vows to safeguard future prizes amid scrutiny
O’Donoghue will oversee the launch of the Prize Protection Program, which the company said intends to ensure all future sweepstakes payouts are fully secure and honored regardless of ARB’s financial status. The PCH-specific standalone payment structure is funded with investment-grade assets held in FDIC-insured escrow and managed through a bank-run investment vehicle.
“We believe programs like this represent an industry best practice, and such safeguards should be standard to protect all sweepstakes participants,” said O’Donoghue.
The new program and its prominence in PCH’s CEO announcement are notable given the ongoing furor surrounding allegations of unpaid prizes.
Prior to the ARB Interactive acquisition, PCH filed for Chapter 11 bankruptcy protection in April, reporting liabilities of between $50 million and $100 million and assets estimated at only $1 million to $10 million. A report from the New York Times in mid-September alleged that ARB Interactive planned to only award prizes to contest winners selected after July 15 after acquiring PCH for $7.1 million in June.
ARB not responsible for pre-acquisition PCH prizes
ARB confirmed it has taken responsibility under an Asset Purchase Agreement (APA) for post-July 15 prizes worth up to almost $3.5 million, one of which is a SuperPrize of $1 million that was expected to be awarded on Sept. 30. A representative for ARB Interactive told SBC Americas that the company is committed to restoring and preserving trust around the PCH brand and is taking decisive steps to ensure that every future prize winner can be confident that any payouts will actually materialize.
However, the company maintained to SBC Americas that, other than the APA-related prizes, it is not responsible for PCH prize obligations incurred before the acquisition.
It said that it recognizes the disappointment and impact this has had on past winners, but all the indications seem to be that PCH’s new parent does not intend to pay out for most winnings that happened before it took over the company.
“Our vision is to rebuild PCH as a brand synonymous with trust, excitement, and long-term integrity, and to ensure that every future winner can have full confidence their prizes will be paid in full, no matter what,” added a spokesperson to SBC Americas.
