New York Court Orders Papaya Gaming to Pay $719 Million in Botting Lawsuit, Company Plans Appeal

A federal court in New York has ruled that Israeli gaming company Papaya Gaming must pay 719 million shekels (approximately $200 million) to its American competitor Skills. This follows an April jury verdict that found Papaya liable for $420 million due to misleading advertising related to the use of bots in its games. Papaya Gaming announced it will appeal the decision, calling it "extreme and unprecedented" and asserting that the company’s management and conduct were beyond reproach.

The lawsuit alleged that Papaya presented its games as fair and skill-based, but secretly used bots impersonating human players while denying such usage. Evidence showed that Papaya ceased using bots in October 2023, prior to the lawsuit being filed. After the jury verdict, Papaya filed multiple motions to overturn the decision, request a retrial, and reduce the damages, while Skills sought to increase the awarded amount with added interest and costs. The New York court rejected these motions and upheld the jury’s findings.

Papaya expressed deep disappointment but confirmed it will vigorously continue to fight for justice through an appeal to the federal appeals court, challenging both the verdict and the damages awarded. Founded in 2016 in Israel by CEO Uriel Bachar, Andrey Birman, and Alex Liakhovetsky, Papaya Gaming develops skill-based mobile games such as Solitaire, Bingo, and Bubbles, where players compete in tournaments for real money prizes. The company employs around 400 people in Tel Aviv and Poland and maintains ongoing business operations despite the legal challenges.