5dimes Sports Betting

5Dimes was one of the most popular sportsbook among North American bettors thanks to its slick service, wide range of betting options and impeccable software. The sports betting platform is built in house and comes with 5 different sportsbooks. 5dimes classic is addressed to the oldest members, while Prime, Ultra, Plus and the Live Betting Extra layouts, are most suitable for the new generation of bettors. Sep 07, 2020 Offshore sportsbook 5Dimes will freeze its US operations later this month, telling customers it plans to relaunch with a “fresh start.” The Costa Rica-based outfit will stop taking bets from US customers at 12 am ET on September 21. By early Monday evening, the following greeted customers in the US trying to log into the site. It’s unclear just how 5Dimes expects to be welcomed back into the US regulated sports betting market, given its lengthy history of defying demands from state regulators to stop catering to their. It sounds like the 5Dimes intends to relaunch as a legal, licensed company in states where sports betting is legal. The problem there, one would assume, is that it has accepted American customers illegally for years, so getting regulators to give the company the thumbs-up might be difficult.

  1. 5dimes Signing In
  2. 5dimes Sports Betting Prime

5Dimes and the U.S. Department of Justice reached a $46.8 million settlement of an investigation into illegal US sports betting operations, as well as money laundering and wire fraud.

The company announced an intent to enter the US sports betting market following the deal, although state regulators likely will balk at the long list of criminal activity detailed in the settlement.

Sports

5D Holdings and owner Laura Varela will forfeit the illegally obtained gambling proceeds as part of a settlement with the US Attorney’s OfficeEastern District of Pennsylvania into the criminal investigation of 5Dimes’ offshore operations in Costa Rica.

“Beginning in at least 2011, 5Dimes accepted wagers from and made payouts to U.S. bettors, and transferred more than $46.8 million in proceeds earned from its illegal gambling activities in such a manner as to attempt to hide the nature, location, source, and control of the funds.”

5Dimes already incorporated 5D Americas LLC in Delaware. The agreement allows Varela the “use of her assets or the assets of the 5Dimes brand to explore future options, including, but not limited to, re-constituting the 5Dimes brand to be licensed to conduct legal, regulated gaming activities in the U.S. and internationally.”

Why is 5Dimes settling?

Varela is the widow of Sean “Tony” Creighton, who was found dead in Costa Rica after he was kidnapped and murdered in Sept. 2018. She’s a Costa Rican citizen.

The $46.8 million was traceable to transactions that violated multiple sections of Title 18 of the United States Code. The settlement agreement includes the fact that 5Dimes “acknowledged that those funds are the proceeds of various unlawful gambling-related offenses.”

Those include:

  • Wire fraud
  • Money laundering
  • Illegal transmission of gambling information

Not all cash

That $46.8 million seized wasn’t totally liquid as Creighton attempted to launder the funds multiple ways, according to the settlement.

The Department of Homeland Security Investigations seized $3.4 million in cash and other assets like a 1948 George Mikan rookie card he bought for more than $400,000 and $715,000 in rare coins.

In total, the assets forfeited were worth more than $26 million. Varela also agreed to forfeit $2 million seized by Costa Rican authorities and pay an additional $15 million.

Betting

5dimes Signing In

Offshore betting seen as illegal by feds

The settlement and preceding investigation strike a blow to those sympathetic to the legality of the offshore industry within the United States. The federal government began investigating 5Dimes’ illegal acceptance of US-based bets years ago and imposed a massive fine for the company to avoid charges.

5dimes Sports Betting

While the company paints the settlement as its pass to seek state-level licensure, the underlying agreement submarines the opinion of many who paint offshore operations as legal under US law.

The admission of ongoing violations of US law dating back at least a decade will make for a heavy discussion topic for state regulators.

5dimes sports betting

What’s next for 5Dimes?

The next step will be trying to get 5Dimes licensed in New Jersey, Varela’s attorney Jeff Ifrah told the Wall Street Journal.

Varela will also have the support of the US Attorney’s Office throughout the process. It will “answer inquiries made by gaming regulators, potential investors, and/or financial institutions regarding her cooperation in EDPA’s investigation and lack of involvement in the operations of 5Dimes,” according to the settlement agreement.

Download new accessbet app. That means whether Varela gives it a go with the brand or decides to sell, she’ll get the help of the authorities she aided throughout the investigation.

How gambling regulators will treat 5Dimes will be an interesting case study. Literally days ago it was still taking wagers from Americans illegally. And we know that the site has been sending at least some bettors to a site that runs with the same backend and lines.

5dimes Sports Betting Prime

US customers have two weeks remaining

5dimes Sports Betting

Popular Costa Rica-based online sportsbook 5Dimes is withdrawing from the United States market. Rumors of locked accounts started bouncing around the internet on Sunday and by late Monday, it was made official, as US customers were met with a notice upon attempting to log in. 5Dimes also sent customers an e-mail explaining that it will stop taking bets from American players at midnight on September 21.

The internet sportsbook did explain why it was pulling out of the US, but the reason was a bit cryptic.

so that we can launch our new operations with a fresh start.”

“With the evolving legal landscape in the United States, we want to take advantage of the opportunity to offer an improved online sports betting experience to our many US customers,” 5Dimes said. “In order to do this, we need to suspend temporarily our service of the US market so that we can launch our new operations with a fresh start.”

Customer funds are safe, but players must cash out by midnight on September 25. Those who do not meet the deadline will have their funds transferred to a “third-party claims administrator” who will then attempt to send money to where it belongs. If customers do not claim their funds by September 30, 2021, the money will be considered abandoned.

Future US plans unknown

The big question is what 5Dimes is planning for its “new operations” in the United States. It sounds like the 5Dimes intends to relaunch as a legal, licensed company in states where sports betting is legal. The problem there, one would assume, is that it has accepted American customers illegally for years, so getting regulators to give the company the thumbs-up might be difficult.

may take some time before they will even be able to be licensed or operate.”

Global Market Advisors consultant Brendan Bussmann told SportsHandle.com that it is good that 5Dimes seems to want to emerge from the unregulated shadows, but: “For those that have operated online or fantasy sports illegal in the past, some regulators have a long memory and it may take some time before they will even be able to be licensed or operate.”

Some states have “bad actor” clauses written into their regulations, which either prevent companies that previously skirted state and federal laws and accepted US customers from operating entirely or penalize them in some way. Illinois, for instance, has a “penalty box” clause, making online-only operators wait 18 months from when the first license is issued to apply for licenses of their own.

DraftKings and FanDuel have dodged the penalty box, however, by inking market access deals with the Casino Queen and Par-A-Dice casinos, respectively. Both casinos were granted master licenses and have agreed to let the DFS and sports betting leaders piggyback on top of them.

Legalization put pressure on offshore books

The natural result of the US Supreme Court overturning PASPA in 2018 was that individual states started to legalize sports betting. What also happened, though, was that several offshore operators, those not licensed in the States and therefore technically operating illegally, felt the pressure to get out. 5Dimes is not the first to withdraw from the US market.

Bovada, one of the operators that most thumbed its nose at US regulators over the years, stopped accepting New Jersey customers last year. BetOnline did, as well.

One of the most interesting operators is BetCris, which withdrew from the United States market after the passage of the UIGEA in 2006. It still does not accept US customers, but is now making moves within the American sports world. In July, it was named the official Latin America wagering partner of Major League Baseball, and on Tuesday, it announced a similar deal with the National Football League, two days before the start of the season.