Skillz blocks Papaya bankruptcy move over massive court judgment

Skillz fights back as Papaya tries to block a massive court payout through Chapter 15 bankruptcy.

Written by the BettingEdgeHub desk, 18 September 2026

Skillz is fighting back against Papaya Gaming in a Delaware federal bankruptcy court. The company wants to stop Papaya from using a Chapter 15 filing to dodge a giant debt. A federal jury previously found Papaya guilty of using computer bots to cheat players in mobile games like Solitaire Cash and Bingo Cash.

Giant court penalty issued

A judge ordered Papaya to pay Skillz seven hundred nineteen million dollars in damages. Papaya quickly ran to an Israeli court to get a temporary stay on the proceedings. Then the company filed for Chapter 15 bankruptcy in the United States to freeze all collection efforts.

Bankruptcy abuse claims

Lawyers for Skillz argue that the bankruptcy filing is pure bad faith. They point out that Papaya only targeted its main creditor while leaving all other debts untouched. Papaya even managed to hand out a ten million dollar dividend to its shareholders.

Next steps for creditors

An Israeli judge already rejected a plan from Papaya to pay off the massive debt over six and a half years. Papaya still has not offered a proper new repayment plan to settle the huge judgment. Skillz wants the federal court to throw out the entire Chapter 15 petition immediately.

What it means for a bet

This massive legal battle shows how mobile gaming companies face huge financial risks when cheating allegations go to court.

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