Posted on: April 25, 2026, 09:02h.
Last updated on: April 25, 2026, 09:02h.
Skillz has secured yet another colossal verdict in its favor.
An X screengrab of Stephen A. Smith promoting “Solitaire Cash,” a controversial social gambling app accused of being rigged against real-money players. Smith and other ESPN personalities have since distanced themselves from the product. (Image: Casino.org)Skillz is the leading platform for skill-based, head-to-head, real-money mobile gaming. The company allows mobile gaming developers to host their games on the Skillz network, a platform that has more than 30 million active players and monthly prizes in excess of $100 million.
More than 14K game developers host their peer-to-peer games on Skillz. Most abide by the rules, which include “Fairness for All,” Skillz’s proprietary technology that ensures evenly-matched play with real players.
Skillz contended in federal court that Papaya Gaming violated its platform’s rules by using computer bots. The scandal, Skillz argued, damaged its brand and platform, costing it hundreds of millions of dollars in damages.
This week, a federal jury in Manhattan agreed with Skillz.
$420 Million Judgement
A jury in New York’s Southern District Court sided with Skillz on its claims that Papaya violated its contract terms and exclusion of bots.
The jury agreed that Papaya “engaged in false advertising in violation of the Lanham Act,” a federal law that protects owners of registered trademarks against infringement, dilution, and consumer confusion. Papaya was also found guilty of violating the New York General Business Law.
Among Papaya’s paid celebrities who shilled its games, including “Solitaire Cash,” were ESPN’s Stephen A. Smith, Mina Kimes, Kendrick Perkins, Dan Orlovsky, and Laura Rutledge.
The court ruled that Skillz should receive $420 million in damages, as well as $719 million in profits Papaya made during its illegal actions. The jury also recommended that Papaya pay Skillz $652 million in “cost-saving disgorgement.”
Skillz proved at trial that Papaya used bots in its games, which is the issue at the core of Skillz’s claims around false advertising, deceptive trade practices and transparency in the skill-based gaming industry. Papaya conducted a multi-year campaign of fraud and false advertising that materially damaged Skillz and the skill-based gaming industry,” a statement from Skillz read.
Papaya said it plans to appeal the verdict.
“While Papaya respects the jury’s decision, we are disappointed with the outcome. Papaya will continue to lead with integrity and transparency while remaining focused on our mission to deliver joy through exciting, skill-based, fair competition,” the release read.
Papaya argued in its defense that it never advertised to consumers that every game or tournament they played would be against a human opponent.
The company said using computer bots does not make the games unfair, with Papaya citing computer chess games and other skill-based computer games, where “simulated opponents routinely emulate human skill levels.”
“Where players are matched with equally skilled players in tournaments with more than two players, each player should lose more frequently than they win. Indeed, in evenly matched contests with ten players, each individual would be expected to finish in first only 10% of the time. That is not an ‘unfair’ outcome; it is a function of Papaya’s match-making efforts and the application of skill operating as they should,” the Papaya defense read.
Skillz Victories
Skillz’s court win versus Papaya is its latest major victory.
In 2024, Skillz was awarded a $42.9 million verdict after a federal jury in California’s Northern District found AviaGames had deceived players by not pairing them against real players.
Avia claimed it had developed an innovative technology where real players were paired against “historical playthroughs,” previously played games by real players. A jury concluded that Avia acted as a house by knowingly pairing a historical playthrough against a lesser-skilled player.
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