Israeli Gaming Firm Papaya Appeals $719 Million US Court Ruling in Consumer Fraud Case

Israeli gaming company Papaya announced it will appeal a $719 million judgment against it by Judge Denise Cote in the Southern District of New York federal court. The ruling stems from a lawsuit filed by Skills, which accused Papaya of deceptive advertising and violating consumer protection laws. Skills alleged that Papaya marketed its games as fair skill-based tournaments between human players, while in reality, bots influenced game outcomes, harming players and causing competitive damage to Skills.

In April, a jury awarded Skills $420 million in damages and recommended additional amounts reflecting Papaya's profits during the relevant period. Following the verdict, Papaya sought to overturn the decision, request a new trial, and reduce the damages, while Skills pushed for increased compensation including interest and legal costs. The court recently rejected both parties' motions and upheld the $719 million figure based on the jury's recommendations.

Separately, Papaya announced it is laying off 30 employees from its approximately 400-person workforce, unrelated to the legal proceedings. Papaya expressed deep disappointment with the ruling but emphasized it does not conclude the legal process, affirming its intention to exhaust all legal avenues to seek justice.