Last month, a jury found mobile gaming company Papaya Gaming Ltd. liable for false advertising for $420 million in actual damages under the federal Lanham Act and New York State law. Papaya competitor Skillz Platform Inc. had alleged that Papaya conducted a multi-year campaign of fraud and false advertising that materially damaged Skillz and the skill-based gaming industry.
The case may appear, on first blush, to be about the use of bots to play, and therefore whether the games at issue were genuine skill contests, or rather just games of chance. However, the claims in the case were actually premised on more traditional, run-of-the-mill false advertising questions.
Continue Reading Skill-Based Gaming Companies Face Growing False Advertising Scrutiny