Skillz Inc. Receives Termination Notice from Tether Studios and Games

Skillz Inc, a mobile games platform, received a termination notice from Tether Studios and Games. The company offers a range of gaming experiences for users, enabling game genres played asynchronously, synchronously or turn-based synchronously. Its end-to-end technology platform improves gameplay experiences and drives engagement, retention, and revenue from content. It also offers an integrated SDK with features such as in-game chat, friends, tournaments, and leagues.

Skillz Inc. (NYSE: SKLZ), a mobile gaming platform, has filed a lawsuit in Delaware Chancery Court against Tether Studios LLC and Tether Games Inc. following a contract termination dispute. The lawsuit was initiated on September 1, 2025, after Tether provided a termination notice on August 29, 2025, effective from September 1, 2025 [1].

The termination notice covered various agreements, including developer terms and conditions and a January 15, 2020 amendment. Under these agreements, Skillz provides Tether with a license to use its Software Development Kit (SDK) for monetization services related to Tether-developed games. The companies share revenue generated from entry fees paid by users.

Tether cited termination for convenience in its notice but also asserted grounds for cause-based termination effective September 28, 2025, if the convenience termination is not upheld by a tribunal. The agreements include restrictions preventing the removal of two games, Solitaire Cube and 21 Blitz, from Skillz's platform for 18 months following termination. During this period, Skillz may host paid competitions for these games but is not required to do so.

Skillz is seeking injunctive and declaratory relief, claiming Tether breached the agreements and that the termination notice is invalid. The company disputes Tether's allegations regarding grounds for cause-based termination and intends to defend its position but cannot provide assurances regarding the lawsuit's outcome or potential business impact.

This development comes at a time when the gaming industry is facing heightened regulatory scrutiny. The termination notice could potentially impact Skillz's revenue and user engagement, particularly for the two games mentioned.

References:
[1] https://www.streetinsider.com/8K/Skillz+files+lawsuit+against+Tether+Studios+over+contract+dispute/25285069.html