Papaya App Downloads Surge After $719 Million False Advertising Judgment

Downloads for Papaya’s flagship mobile skill games have risen since a federal jury determined the company used deceptive advertising practices.

Publicly available data from Sensor Tower along with reports shared with Casino.org indicate that Solitaire Cash, Bingo Cash, and Bubble Cash have all seen increased downloads since April 23, 2026. That was the date the jury sided with Skillz on claims that Papaya duped consumers.

An industry insider exclusively told Casino.org that the spike stems from heavier ad spending. Papaya denied the claim and declined an on-record request for comment.

The games stake real players against one another with an ante. A federal jury found that Papaya deployed computer bots to simulate faster peer-to-peer pairing times rather than matching players against live opponents as advertised.

The Court Ruling

On July 27, 2026, US District Judge Denise Cote ordered Papaya to pay $719 million in disgorgement of unjust profits under the federal Lanham Act and New York General Business Law. Cote found that Papaya harmed Skillz by falsely advertising faster pairing times for head-to-head real-money skill games.

“In its advertising, Papaya never disclosed that it deployed bots in its tournaments. Instead, it purposely engaged in false advertising,” Cote ruled in New York’s Southern District Court. She added that when players complained, “Papaya flatly denied it was doing so. It told complainants that it ‘wants to clarify that we do not use bots or computer players.’ Papaya’s executives were intimately involved in the deception.”

Cote noted that Papaya instructed staff to escalate complaints about bot use to management and removed posts complaining about suspected bot use from its Facebook group. The company misrepresented its tournaments to app stores, its payment processors, and its advertising channels.

Bankruptcy Proceedings and Resource Allocation

In the wake of the ruling, Papaya filed for Chapter 15 of the US Bankruptcy Code in Delaware. The Israel-based company secured a temporary stay of proceedings from the Tel Aviv District Court that prevents Skillz from initiating collection efforts until its appeal is concluded with the US Court of Appeals for the Second Circuit.

Judge Iris Lushi-Abudi wrote in granting the temporary stay: “The Applicants acknowledge that they are unable to pay the debt owed to Skillz if that debt becomes enforceable.” Court documents showed that Papaya had about $151 million in cash.

The Israeli court denied Papaya’s proposed debt repayment plan, which called for satisfying the Skillz judgment over 6.5 years using future profits. The plan lacked sufficient merit because it relied solely on projected operating profits with no equity or securities backing. Attorney Gil Oren was appointed as administrator to develop an improved debt arrangement.

Cote’s order was a monetary judgment, not an injunction or consent decree governing Papaya’s business operations. The company remains free to determine how it allocates its resources while the court matters proceed. Papaya claims to have ceased using computer bots in late 2023. It reduced spending on celebrity endorsements for Solitaire Cash late last year after ESPN personalities including Stephen A. Smith severed ties amid the legal scrutiny.

Reporting: Casino.org News

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