Papaya Gaming Ltd. (“Papaya” or the “Company”), the pioneering technology company of the multiplayer Skill-Based Tournaments category, today announced that it has taken a proactive and strategic series of legal steps to ensure the continuity of its profitable business operations, its employees, its players, and all of its stakeholders during the appeal of the judgment issued against it in the United States.

The Company has applied to the Tel Aviv-Jaffa District Court for a supervised payment arrangement. In parallel, the Company has commenced an ancillary proceeding in accordance with U.S. laws intended to provide a coordinated legal framework while the appeal is pending. Together, these coordinated proceedings establish a legal framework that preserves the status quo, protects the Company’s ongoing operations, and ensures the orderly management of legal claims during the appeal period.

A Proactive Step to Ensure Longterm Continued Success

Papaya’s leadership team has been clear: this is a forward-looking, responsible decision to address the judgment while maintaining the profitable operations of the Company and its responsibilities to its players, partners, and employees.

“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,” said Papaya. “This is a proactive, responsible, and strategic step to preserve the Company’s operations and the rights of all parties during the appeal process, which may last several years. Papaya’s operations continue as usual, and the Company is fully meeting its ongoing obligations to its employees, players, vendors, and service providers, without any change.”

What the Strategic Legal Framework Involves

The two proceedings work in tandem: the Israeli court supervises the arrangement – to enable a healthy operating company to address pending legal claims through a court-supervised process – and the U.S. court provides the legal tools necessary to give that arrangement full effect in the United States. The supervised payment arrangement applies exclusively to legal claims asserted against the Company, and principally, the judgment in the lawsuit brought by its business competitor, Skillz. It has no effect whatsoever on Papaya’s business operations or ordinary course relationships with its employees, players, vendors, and service providers.

Papaya Continues to Operate as Usual — No Change to Any Business Relationships

Papaya is operating at full capacity, and there is no change of any kind to the Company’s relationships with its customers, players, vendors, employees, or service providers. The Company continues to fulfill all of its obligations in the ordinary course of business.

A Financially Robust Framework

Under the arrangement, Papaya will continue to operate normally while transferring its established installments into a dedicated segregated fund to be managed under the supervision of a court-appointed officer. The funds are not paid to any creditor and may be distributed only as authorized by the court.

Only holders of legal claims based on causes of action similar to those asserted by Skillz will be required to file claims and be included in the arrangement. Ordinary creditors and business counterparties are entirely unaffected.

This press release contains forward-looking statements. All legal proceedings referenced remain subject to court approval.

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