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Federal jury awards Skillz up to $420 million in Papaya Gaming case

Regulation

A federal jury in New York found for Skillz in its case against Papaya Gaming, finding violations involving contract terms, false advertising and New York business law. The jury awarded Skillz up to $420 million in damages; Papaya said it planned to appeal and argued that it had not promised every game or tournament would involve human opponents.

The verdict and planned appeal could affect the companies’ dispute over bots and advertising in skill-based gaming.

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Delaware bankruptcy judge bars Papaya Gaming offshore asset transfers

US Bankruptcy Judge Mary Walrath ordered Papaya Gaming Inc. on 27 October to stop transferring assets from US accounts to offshore holdings. The court also requires ordinary-course transactions to be reported to the US trustee and pre-funded at 115%, and bars payments to affiliates and insiders. Papaya is due to present a revised payment outline in the coming days, before a temporary stay expires on 25 November.

On Oct. 27, US Bankruptcy Judge Mary Walrath told Papaya to stop shifting assets from its US accounts into offshore holdings. A Delaware federal bankruptcy judge has barred Papaya Gaming from sending assets abroad while the company restructures its debt in Israel.

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