When many Americans think of ‘sweepstakes’, they think Publishers Clearing House. In decades gone by, you couldn’t miss its letters and TV ads, promising life-changing prizes to lucky winners. The iconic Prize Patrol, with its oversized checks and balloons, became a household symbol of unexpected fortune.
However, in today’s digital era, PCH has had to evolve beyond mail-in sweepstakes and physical magazine subscriptions, embracing online games, apps, and data-driven marketing to keep users engaged and profits flowing.
Entry into lottery-like competitions with cash prizes is still free, while PCH Tokens are also available for customers who fill out surveys or play the various online games at pch.com.
These Tokens then provide entry into more competitions for non-cash prizes, like appliances and gift cards. Titles might be based on wordplay, jigsaw puzzles, or casino games, and some are launched in collaboration with celebrities, like Steve Harvey (pictured).
PCH Partnership with SCCG
Now, the company’s latest venture looks to be a partnership with gambling advisory firm, SCCG Management, which could hint at a shift toward deeper involvement in the social and sweepstakes casino space.
PCH might not plan to run a fully-fledged casino of its own, but it could be leveraging its valuable database of players. These are players who have already shown an interest in sweepstakes and gambling-style games, and the data could be offered to existing sweepstakes casinos or similar platforms.
Until now, PCH’s audience tended to be skewed towards an older, retired demographic, but it’s estimated that it has records on 15 million players, comprising a sizable dataset. With first-party data (e.g., email, preferences, or actions on the site), zero-party data (e.g., preferences, feedback, or survey responses), and behavioural insights available, SCCG will likely be advising PCH on the most profitable ways to utilize this.
Hopes to Move on From 2023 Lawsuit
The new venture comes as PCH looks to move past its 2023 lawsuit with the Federal Trade Commission, one which resulted in an $18.5 million settlement.
The FTC argued PCH was misleading customers into believing they had to make a purchase to either enter or improve their chances of winning in the sweepstakes. While PCH rejected the arguments of “deceptive and unfair” methods, it agreed to tweak its business practices and create an $18.5 million fund to refund previous consumers.
Looking to the Future
Concrete details of the collaboration with SCCG are thin on the ground, but the partnership does hint at a potential expansion into the social and sweepstakes casino space.
With a large player database and a need to focus on digital innovation, PCH could soon be another player in the fast-growing social and sweepstakes market.
Author: Mike F.
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