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Skillz CEO Andrew Paradise spoke in the company’s earnings call about the company’s recent lawsuit against AviaGames, and the alleged “willful pattern of deceit” on the part of its executives to use bots to defraud players. According to Paradise, Skillz received $50 million from AviaGames as part of a settlement agreement that totals around $80 million. But the company is far from done, adding that AviaGames is not the only company out there using bots to defraud customers.
At the conclusion of Skillz’s patent infringement lawsuit against AviaGames, the jury awarded the former almost $43 million. However, Paradise says Skillz and Big Run Studios entered into the settlement agreement with AviaGames afterwards. Starting next year, Skillz receives $7.5 million in licensing royalty payments for four years annually. However, Paradise said that $80 million is a “drop in the bucket in comparison to the magnitude of the fraud we believe is being perpetrated on American consumers daily.”
Paradise highlighted AviaGames’s use of deceptive language to disguise the presence of bots, referring to them as “cucumbers” and “guides” in evidence submitted to the court. Paradise said that, despite the lawsuit, AviaGames is still operating. Skillz has also filed suit against Papaya Gaming for its alleged usage of bots to defraud players, and Paradise says the company is fighting “the outright theft of billions of hard-earned dollars.”
Paradise noted that the company is hopeful that their litigation will spur government entities to take action to protect consumers. “Skillz will continue to combat the deceptive usage of bots until systemic fraud in our industry is eliminated. Creating a fairer future in gaming is good for consumers, our industry, as well as for Skillz.” We have asked AviaGames and Papaya for comment.
