For decades, Publishers Clearing House sold not only magazine subscriptions, but also dreams.
A knock at the door, a van in the driveway, balloons bobbing in the hands of smiling strangers: “We’re from Publishers Clearing House, and you are our newest big winner!”
But in April, the company filed for Chapter 11 bankruptcy protection in New York, listing 10 prize winners among its largest unsecured creditors, according to federal court records. The filing stated that the company had liabilities between $50 million and $100 million, with assets estimated at only $1 million to $10 million.
Now, ARB Interactive, an online casino operator that in July acquired Publishers Clearing House out of bankruptcy protection for $7.1 million, said that it would pay only those who won after July 15, casting doubt on how much more money past winners will receive.
“I’m getting the shaft, on top of the shaft,” said John Wyllie, 60, from Bellingham, Wash., who won $5,000 a week for life from Publishers Clearing House in 2012.
Mr. Wyllie had been receiving an annual check for $260,000 every January, money that allowed him to retire and buy a home on six acres. But this year, the checks stopped. A few months later, he learned why: Publishers Clearing House had filed for bankruptcy protection without warning.
Mr. Wyllie, who had not worked in more than a decade, said he had recently found a part-time job, but added, “I won’t make enough money to even pay the mortgage.”
The ceremonial oversize check he once displayed proudly on his wall now sits on a table in his family room, he said. What had been a symbol of pride and security for his family has become a painful reminder of the payments that have stopped.
“Looking at it makes me sad and it makes me mad,” Mr. Wyllie said.
In a statement on Friday, ARB Interactive said that it would cover only prizes awarded after July 15, including two “SuperPrizes” worth up to $2.5 million combined, and a $975,000 award on May 31. Another prize, worth $1 million, is set to be awarded on Sept. 30.
Payments owed to past Publishers Clearing House prize winners, however, remain unpaid. With ARB Interactive saying that it was not responsible for those obligations — and Publishers Clearing House carrying up to $100 million in debt — it is unclear whether those winners will receive any more money.
Publishers Clearing House will have to come up with a plan to divide up its remaining assets. A federal bankruptcy judge will ultimately decide how the company’s remaining assets are divided among the creditors, including prize winners.
A spokesman for ARB Interactive said that the company had contributed money to the bankruptcy estate and planned to set up a new system to guarantee future prize payments. The spokesman did not say how much money the company had contributed.
“Our vision is to rebuild P.C.H. 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,” the spokesman said in the statement.
Publishers Clearing House did not respond to a request for comment.
Federal court filings and interviews suggest the company once shielded prize winners from financial risk by purchasing prepaid annuities through banks or insurance companies. That practice ended sometime after 2003, said Darrell Lester, a retired Publishers Clearing House senior executive and author of a book about the company.
Leaving past winners without payment is the worst thing the company could have done, Mr. Lester said.
“You can’t do that as a sweepstakes company,” Mr. Lester said. “You can’t not pay the winners. That’s a cardinal sin.”
The bankruptcy has also disrupted the lives of Tamar and Matthew Veatch, disabled Army veterans from Oregon raising three children. Tamar had been receiving nearly $200,000 a year from a Publishers Clearing House prize since 2021. The payments stopped this year.
“My wife and I are both disabled veterans, and so we did OK financially,” Mr. Veatch said in an interview. “But it’s a fixed income. Neither of us can work.”
The family used the money to cover household bills, rising food costs and experiences for their children. They had counted on an expected payment in July to pay off back taxes and debt, but when it never arrived, they were left scrambling.
“They have absolutely ruined people’s lives,” Mr. Veatch said. “We’re literally in a worse spot now than we were when we won.”
Sheelagh McNeill contributed research.
Mark Walker is an investigative reporter for The Times focused on transportation. He is based in Washington.
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