NEW YORK, April 23, 2026, 3:53 PM EDT
- Papaya Gaming was hit with a $420 million damages verdict after a Manhattan jury found it liable for false advertising in its battle with Skillz. Now, Skillz is waiting to see if a judge in early June will tack on another $652 million in disgorgement.
- Skillz shares surged roughly 187% to $10.55 at 3:38 p.m. EDT, after spiking as high as $19.14 earlier in the session.
- The $420 million in damages comes to nearly four times Skillz’s projected 2025 revenue—$104.5 million, by their own numbers.
Shares of Skillz Inc. shot higher on Thursday, after a Manhattan federal jury handed down a verdict against Papaya Gaming Ltd for false advertising. The panel awarded Skillz $420 million in damages and determined the company could seek an additional $652 million in disgorgement—profits Papaya might have to surrender. U.S. District Judge Denise Cote is set to weigh in on that recovery in early June.
Skillz just scored a big legal victory at a crucial moment. The damages award? Roughly four times what the company pulled in for revenue last year. That’s a significant boost for Skillz as it works to build on its recent momentum in the cash-competition mobile gaming space.
Skillz stock soared roughly 187% to $10.55 as of 3:38 p.m. EDT, market data showed. Earlier in the session, shares touched an intraday peak of $19.14.
Skillz welcomed the decision, saying it’s sticking with its push for fair competition and transparency for both players and developers.
The company filed its lawsuit against Papaya in 2024, accusing the competitor of promoting its games as “fair” and “skill-based” while deploying bots—automated players—in real-money tournaments. In a February decision on expert testimony, Judge Cote said a jury could find Papaya liable under the Lanham Act, the federal statute prohibiting false advertising, if the use of bots in cash competitions wasn’t disclosed. SEC
Earlier this month, Skillz attorney Lazar Raynal told the jury that Papaya had claimed $6.7 billion in winnings, with $4.7 billion actually funneled to bots rather than to real players. After deliberating for just over two days, a jury of eight delivered its verdict on Thursday, according to Bloomberg Law.
Skillz took its case to investors hoping to prove some stability. The March 31 earnings release showed $104.5 million in 2025 revenue, a net loss at $70.4 million, and cash on hand at $194.5 million. CEO Andrew Paradise pointed to “four consecutive quarters of sequential revenue growth.” CFO Gaetano Franceschi added, the year closed with “$195 million in cash and cash equivalents.” Skillz Investor Relations
This case continues a string of legal clashes in mobile gaming. Just last year, Reuters reported that Skillz and AviaGames reached a settlement after a jury hit AviaGames with a $42.9 million verdict in a patent dispute—clear evidence that competition in the sector is spilling into the courts.
Thursday’s verdict doesn’t mean Skillz gets the money right away. Judge Cote still needs to rule on whether Papaya should pay an additional $652 million in disgorgement. Papaya, for its part, told the court during closings that there was no proof it ever made any money from the disputed winnings, and claimed its total revenue didn’t top $1 billion, court coverage showed.
Early June brings the court’s decision on whether the award holds at $420 million or climbs.
