Online Sweepstakes Casino Company Takes Over Publisher Clearing House

In the realm of online gaming, the acquisition of Publishers Clearing House by ARB Interactive has sparked a new chapter in the ongoing controversy surrounding social sweepstakes casinos.

ARB Interactive, a Miami-based online sweepstakes gaming company known for its Modo Casino, is now the owner of the iconic Publishers Clearing House, which was founded in 1953 as a door-to-door magazine subscription service. ARB Interactive is committed to digitally transforming its business through mobile-first, interactive, and free-to-play games enhanced by the power of sweepstakes and prizes.

However, the acquisition has come under scrutiny due to the ongoing regulatory crackdowns and legal challenges facing social sweepstakes games in the United States. Many states are moving to ban or heavily regulate sweepstakes-style online casinos, with concerns about unregulated gambling and consumer protection issues at the forefront.

New Jersey is considering banning online sweepstakes casinos, while Louisiana’s Senate has passed a bill targeting sweepstakes gambling. In Arizona and Pennsylvania, regulators have issued multiple cease-and-desist orders, and Nevada has approved bills increasing penalties on sweepstakes providers. Similar bills are progressing in Maryland, Mississippi, and Florida, where proposed laws were withdrawn amid controversy.

The controversy centers on whether sweepstakes games, which often claim to be free-to-play but incentivize purchasing virtual currencies, amount to illegal gambling under state laws. Many states see these games as exploiting loopholes in gambling regulations, leading to increased enforcement and legislative efforts.

This controversy does not solely affect ARB Interactive's Modo Casino, as it operates in the sector currently under heavy legal and regulatory scrutiny nationwide. The FTC's probe into Publishers Clearing House found that consumers were misled into believing that purchasing more would increase their chances of winning, and the company was also accused of surprise shipping and handling fees that made the subscription price considerably more expensive than advertised.

Despite the controversies, the acquisition of Publishers Clearing House by ARB Interactive was finalised for over $7.1 million, including approximately $378K in outstanding expenses. The Modo Casino website states that it does not offer 'real-money gambling'.

As the debate continues, it remains to be seen how the acquisition of Publishers Clearing House by ARB Interactive will impact the future of social sweepstakes casinos in the United States.

Sources: 1. WSJ: Publishers Clearing House Acquired by ARB Interactive 2. The Controversy Surrounding Social Sweepstakes Casinos

The acquisition of Publishers Clearing House by ARB Interactive, owner of Modo Casino, has opened a new chapter in the debate surrounding social sweepstakes casinos in the online gaming industry.
ARB Interactive, known for its interactive, free-to-play games using sweepstakes and prizes, has faced scrutiny due to ongoing regulatory crackdowns and legal challenges against sweepstakes-style online casinos in the U.S.
states are considering bans or heavy regulations on online sweepstakes casinos, citing concerns about unregulated gambling and consumer protection issues.
In light of these challenges, ARB Interactive's Modo Casino, operating in the sector under legal and regulatory scrutiny, faces potential implications from the acquisition of Publishers Clearing House.
The FTC's probe into Publishers Clearing House revealed that consumers were misled about purchasing increasing chances of winning and incurring surprise shipping and handling fees.
Despite the controversies, the acquisition was finalized for over $7.1 million, with Modo Casino clarifying that it does not offer 'real-money gambling'.
As the debate on social sweepstakes casinos continues, the future impact of ARB Interactive's acquisition of Publishers Clearing House on the industry remains uncertain.
The controversy revolves around whether sweepstakes games that incentivize the purchase of virtual currencies amount to illegal gambling under state laws.
The acquisition of Publishers Clearing House by ARB Interactive, a player in the iGaming, casino-and-gambling, and lotteries sectors, is part of the broader discussion on gambling trends in the U.S. and the evolving business practices in the casino-games and finance industries.