Skillz Lawsuit Against Papaya Gaming Over Bot Allegations to Continue in Federal Court

Posted on: July 24, 2024, 02:10h. 

Last updated on: July 24, 2024, 02:38h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Skillz Platform Inc.’s lawsuit against a rival over allegations that the competitor’s platform uses computer bots to play against real human customers can proceed, a federal judge ruled this week.

Skillz Papaya lawsuit skill games computer bots
The Skillz lawsuit against Papaya Gaming over the alleged use of computer bots will continue. The case is being tried in New York’s Southern District federal court. (Image: Casino.org)

In March, Skillz filed a lawsuit in New York’s Southern District Court with Israel-based Papaya Gaming named as the defendant. Skillz alleges that unlike its own skill gaming platforms and apps that pair real humans against one another, Papaya’s network regularly uses computer bots. Papaya has denied the allegations and says the litigation “has no merit.”

On Tuesday, Judge Denise Cote ruled against Papaya’s motion to dismiss the lawsuit. Cote ruled that the Skillz complaint met requirements under the Lanham Act, the federal trademark statute that covers false advertising and unfair business practices.

“The complaint sufficiently alleges that Papaya’s representations about the nature of its games are impliedly false,” Cote wrote in her order. “The complaint plausibly alleges that Papaya employs bots as ‘players’ in its competitions while creating the impression that all players will be human competitors.”

Papaya Statement 

Reached by Casino.org for comment regarding the continuation of the Skillz complaint, a Papaya spokesperson responded:

Papaya is one of the world’s largest skills-based mobile game developers — on a mission to bring more fun challenges to the world. We are absolutely committed to fair and enjoyable skills-based mobile gaming that rewards the abilities of our players.

“Papaya continues to believe that the complaint filed by Skillz is meritless, and will vigorously defend against any and all baseless claims while remaining focused on our mission.”

A few of Papaya’s more popular games include Solitaire Cash, Bubble Cash, Bingo Cash, 21 Cash, and Cookie Cash.

Case Continued

Skillz is on a legal crusade to restore the reputation of the mobile skill gaming market, which has been criticized for the alleged widespread use of computer bots. Skillz was a pioneer of the online peer-to-peer skill gaming industry.

Skillz contends its platform has been manipulated by its competitors to allow the use of bots. That has put Skillz’s games at a competitive disadvantage, as players say the Skillz suite of apps typically has longer pairing times.

In February, a federal jury in California’s Northern District Court ruled in favor of Skillz against AviaGames. Skillz was awarded nearly $42.9 million after jurors concluded that Avia willfully breached Skillz’s patent. A separate class-action lawsuit on allegations that Avia utilizes bots is ongoing.

Earlier this month, Skillz sued Voodoo, a Paris-based mobile game developer, for the use of bots and manipulating its platform.

In their motion to dismiss the Skillz lawsuit, Papaya attorneys argued that Skillz failed to point to any statement made by Papaya saying it does not use bots. Cote said that while a false denial regarding bot use would be “actionable,” it “is not the only way in which a consumer may be misled.”

Skillz says it generates revenue by facilitating peer-to-peer betting among skill gamers by charging a small commission. Skillz alleges that Avia, Papaya, and Voodoo generate revenue the same way but also reap the financial windfall of their computer bots regularly beating real human players and acting as a house not unlike a casino.

According to the case docket, Skillz and Papaya attorneys have agreed to settle on a timeline for the lawsuit to continue by the end of the month.