US court blocks Papaya from moving money out of the US as Skillz chases $730m judgment
A US bankruptcy court has blocked Papaya Gaming from transferring funds out of its American bank accounts while Skillz pursues a approximately $730 million judgment against the company. Judge Mary F. Walrath of the US Bankruptcy Court for the District of Delaware issued the ruling on October 23 following a three-day hearing, with the written order entered on October 27.
Under the court’s restrictions, Papaya Gaming can only make essential routine payments, which must be funded from its accounts outside the United States and paid at 115% of the transaction amount. The company is prohibited from making any transfers to insiders or affiliates, and must report all payments to both Skillz’s legal representatives and the US Trustee overseeing the bankruptcy proceedings.
The financial constraints are particularly significant given Papaya Gaming’s revenue composition. Between 85% and 97% of the company’s monthly revenue derives from US-based players, with Solitaire Cash as a major revenue contributor. This heavy dependence on the American market means the fund transfer restrictions severely limit Papaya’s operational flexibility and ability to redistribute earnings. The court’s decision effectively freezes Papaya’s ability to move capital internationally—a standard strategy to prevent defendants from hiding assets during bankruptcy proceedings or judgment enforcement.