Posted on: July 24, 2024, 02:10h.
Last updated on: July 24, 2024, 02:38h.
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.
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.
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.
