Papaya Gaming, the company behind sweepstakes casino Solitaire Cash, has filed for Chapter 15 protection in the United States after a federal court ordered it to pay $719 million in a false-advertising case. The move comes as the Israel-based company tries to keep its business running while it fights the judgment.
According to BankruptcyObserver, PAPAYA GAMING INC. filed a voluntary Chapter 15 petition in the District of Delaware on Aug. 2. The case number is 26-11218.
Chapter 15 is a cross-border insolvency procedure that gives a foreign restructuring proceeding recognition and protection in the United States. Papaya said the filing is meant to protect assets and preserve operations while it pursues its appeal.
The company also said day-to-day play and player accounts should not be disrupted. Casino.org reported that Papaya described the move as a proactive step to preserve its operations and the rights of employees, players, vendors and service providers, while the appeal process continues.
The underlying dispute dates to a lawsuit filed in 2024. Skillz’s investor relations page said the U.S. District Court for the Southern District of New York issued an order on July 28 stating it would enter judgment against Papaya Gaming for $719 million in disgorgement of unjust profits, plus attorney’s fees and costs.
That $719 million figure replaced $420 million in actual damages awarded in April. The April award was described as the largest false-advertising verdict in U.S. history under the Lanham Act.
Skillz’s release said a unanimous jury found Papaya’s advertising false. It said evidence showed that between 2021 and 2024, about 70% of the $6.7 billion in prize money Papaya advertised, or roughly $4.7 billion, was never actually paid to customers because Papaya’s bots won the prizes.
The same material said Papaya’s more than 13 million bot participants outnumbered its roughly 11 million real human players. It also said the court awarded about $10 million in attorney’s fees for 2024 and 2025.
Papaya, which is based in Israel, has also started a related proceeding there. Casino.org reported that Tel Aviv District Court Judge Iris Lushi-Abudi granted a temporary stay of proceedings on Aug. 2 and wrote that the applicants acknowledged they were unable to pay the debt owed to Skillz if it became enforceable, as well as their remaining debts.
