Skadden Lawyers, Client Sanctioned in High-Stakes Gaming Lawsuit

Judge rules Skadden filed 'duplicative, vexatious litigation' to impose costs on Papaya Gaming

Published on Mar. 2, 2026

Got story updates? Submit your updates here. ›

A federal judge in New York has sanctioned the law firm Skadden Arps and its client Papaya Gaming Ltd. for filing a 'duplicative, vexatious' lawsuit against rival gaming company Skillz Platform Inc. The judge concluded that Skadden's lawsuit in Virginia 'reasserted core allegations' that Papaya had already made as a counterclaim while defending against Skillz's original suit.

Why it matters

This case highlights the high-stakes legal battles in the competitive online gaming industry, where companies are willing to use aggressive litigation tactics to gain an advantage over rivals. The sanctions against a prominent law firm like Skadden send a strong message about the courts' intolerance for such tactics.

The details

According to the judge's order, Skadden attorneys filed a lawsuit for Papaya Gaming in Virginia that 'reasserted core allegations' the online gaming company had already made as a counterclaim while defending against a suit brought by rival Skillz Platform Inc. The judge, Denise L. Cote of the US District Court for the Southern District of New York, concluded that this amounted to 'duplicative, vexatious litigation' intended to impose additional costs on Skillz.

  • On March 2, 2026, Judge Cote issued her order sanctioning Skadden and Papaya Gaming.

The players

Skadden Arps

A prominent international law firm that was sanctioned by the court for filing a 'duplicative, vexatious' lawsuit on behalf of its client Papaya Gaming.

Papaya Gaming Ltd.

An online gaming company that was sued by rival Skillz Platform Inc. and subsequently filed its own lawsuit in Virginia, which the court found to be 'duplicative' of its earlier counterclaims.

Skillz Platform Inc.

An online gaming company that sued Papaya Gaming and was the target of the 'duplicative, vexatious litigation' filed by Skadden on Papaya's behalf.

Judge Denise L. Cote

The US District Court judge for the Southern District of New York who issued the order sanctioning Skadden and Papaya Gaming.

Got photos? Submit your photos here. ›

What they’re saying

“Imposition of sanctions is not to be undertaken lightly. It is particularly difficult to do so against a law firm, which is an officer of the court.”

— Judge Denise L. Cote, US District Court Judge (Court order)

What’s next

The judge did not specify any clear next steps in her order, but the sanctions against Skadden and Papaya Gaming could potentially be appealed.

The takeaway

This case underscores the high-stakes legal battles in the competitive online gaming industry, where companies are willing to use aggressive litigation tactics that can backfire and result in sanctions from the courts. It serves as a warning to law firms and their clients about the consequences of filing 'duplicative, vexatious litigation' intended to impose additional costs on rivals.