The court has ordered Papaya Gaming to pay nearly half a billion dollars for false advertising of games
The company Papaya Gaming lost its case against Skillz. A jury in the Southern District of New York found it guilty of unfair competition and false advertising, also ordering it to pay $420 million in compensation.
Skillz filed a lawsuit against Papaya Gaming in 2024. The complaint stated that the company misled users by promoting its prize-money games as fully skill-based, which was not true. In particular, matches could involve not only real people but also bots.
According to Skillz, such practices allowed Papaya to inflate engagement metrics, control the share of wins, and encourage gamers to spend more money.
The jury also indicated the possibility of replacing the $420 million fine with other, larger amounts — for example, recouping up to $719 million in illegally obtained profits. The final decision will be made by the trial judge.