Papaya Gaming barred from moving US cash as Skillz pursues $730m judgment
Published 3 Nov 2026 · Games Atlas Editorial · Legal Action & Litigation · Companies: Skillz
Games Atlas summary: Judge Mary F. Walrath barred Papaya Gaming from moving money out of its US accounts. The order follows a $719m judgment plus fees, totaling near $730m owed to Skillz. Permitted payments must be pre-funded at 115% from Papaya's accounts outside the US. The court called CEO Oriel Bachar not credible over an undisclosed $70m Israel transfer.
How to cite this page
Games Atlas — Games Industry Intelligence (2026). Papaya Gaming barred from moving US cash as Skillz pursues $730m judgment. Published 3 Nov 2026. https://gamesatlas.app/article/papaya-gaming-barred-from-moving-us-cash-as-skillz-pursues-730m-judgment
Court mechanics replace offshore liquidity with escrow-style controls
- Walrath recognized Papaya's Israeli parent as a foreign main proceeding under Chapter 15.
- The US subsidiary received only nonmain status, its center of interest being in the US.
- Each US payment now needs 115% pre-funding from abroad one day ahead.
- Insider transfers are barred and every payment must reach the US Trustee and Skillz.
Credibility findings erode offshore shielding argument
- The court called CEO Oriel Bachar not credible on his testimony about cash transfers.
- Papaya moved over $70m from a US account to Israel before the April trial.
- That transfer was not disclosed to the New York court weighing an asset freeze.
- Skillz says the undisclosed transfer prejudiced it and other US creditors.
Parallel Israeli process sets a narrow exit window
- Papaya's revised repayment proposal goes to a creditor vote in Tel Aviv on Nov. 8.
- Israel's collection stay on Papaya expires Nov. 25, narrowing the restructuring timeline.
- A Tel Aviv court rejected an earlier plan in August for lacking sufficient funding.
- Papaya has appealed the $719m judgment to the 2nd Circuit without posting a bond.
What this means
- For UA & Marketing: Raise bids on cash-skill solitaire and bingo inventory as the rival's US spend tightens.
- For Investors & VC: Add bot-versus-human player audits to every real-money skill-gaming diligence checklist.
- For Service Vendors: Shift US skill-gaming clients with foreign parents onto prepaid or escrowed payment terms.