Papaya Gaming, the Israeli company behind Solitaire Cash, has filed for Chapter 15 protection in the United States after a court ordered it to pay $719 million to rival Firy Inc., formerly known as Skillz.

The company said the filing will help protect its assets and allow it to continue operating while it appeals the judgment. Papaya has also started related legal proceedings in Israel, where it received a temporary stay of proceedings as it challenges the US ruling.

The dispute stems from a lawsuit filed by Firy in 2024 over Papaya’s advertising practices and operations of its real-money gaming platform. A jury found Papaya liable for using computer bots in its games, misleading consumers and violating false advertising laws. US District Judge Denise Cote later awarded Firy $719 million in damages, legal fees and costs.

Papaya has denied the allegations and said it intends to appeal the decision.

Company Uses Cross-Border Insolvency Process

Papaya submitted its Chapter 15 petition to the District of Delaware’s US Bankruptcy Court. The process is designed for foreign companies seeking recognition of restructuring proceedings in the United States and differs from a standard domestic bankruptcy case.

Sunni P. Beville, partner and co-chair of the Mass Tort Bankruptcy Practice Group at Otterbourg, P.C., explained that Chapter 15 provides a legal framework for protecting assets while international proceedings continue.

“A Chapter 15 filing, by itself, doesn’t determine whether a company will survive. It’s a procedural tool that allows a foreign restructuring proceeding to receive recognition and protection in the United States. The filing is intended to preserve the company’s assets and operations while the restructuring and related litigation, including any appeals, move forward,” she said.

Beville added that the filing does not automatically affect customers or stop the company’s daily activities.

“The purpose of seeking Chapter 15 recognition is to avoid disruption from creditor enforcement actions that could interfere with ordinary business operations. While customers should continue to monitor developments, the filing itself is not intended to halt day-to-day operations or immediately affect player accounts,” she said.

Papaya stated that its services remain active and that it continues to meet obligations to employees, players, vendors and service providers.

“Given the company’s financial success, this action in accordance with Israel and U.S. laws allows us to continue operating as usual until the appeal in the United States is resolved,” Papaya said.

Israeli Court Grants Temporary Protection

Alongside the US filing, Papaya obtained a temporary stay from the Tel Aviv District Court as part of efforts to establish a supervised payment arrangement.

Judge Iris Lushi-Abudi approved the request, allowing Papaya to maintain business continuity while it pursues its appeal in the United States. The company acknowledged in court documents that it would be unable to pay the Firy judgment if the award becomes enforceable.

“The Applicants acknowledge that they are unable to pay the debt owed to Skillz if that debt becomes enforceable, as well as their remaining debts,” the filing stated.

Under the proposed arrangement, Papaya will place available cash into a designated fund overseen by a court-appointed official. The fund is expected to contain around $100 million during 2026, along with additional annual contributions, which could support claim payments if the US ruling is ultimately enforced in Israel.

Firy Secures Major Legal Victory

Firy provides real-money gaming competitions similar to Papaya’s platform. The company argued that Papaya harmed its business by failing to disclose the use of bots in player competitions.

Following the verdict, Firy CEO Andrew Paradise said the decision confirmed the company’s position in the market.

“We founded this industry and built its biggest and best company on one value above all others: honor,” he said in a press release reported by The Street. “When growth stalled, investors decided our moat was a story. It was not. In a winner-take-most market, Papaya could not beat us fairly, so it used bots to fake the competition we invented. This judgment sets the record straight. The moat was real.”

Papaya said it no longer uses bots in its real-money head-to-head games and is seeking to overturn the judgment through the appeals process. If the Chapter 15 petition receives approval from the US Bankruptcy Court, the filing could prevent Firy from beginning collection efforts while the appeal remains unresolved.