Costa Rican betting operator 5Dimes is now in the clear to apply for a license and enter the lucrative U.S betting market after agreeing to pay a sum of $46.8 million to the US Attorney’s Office for the Eastern District of Pennsylvania.
The Costa Rican sportsbook has been in operation since early 2000s and had built up a growing player database in the U.S market. The Department of Justice (DOJ) went after 5Dimes over a variety of alleged offenses which included money laundering and wire fraud amongst others.
One of the main reasons why the settlement was reached was due to extended cooperation of owner Laura Varela and the DOJ. Under the terms of the agreement, 5Dimes will pay $15 in cash while the remaining amount will be forfeited via various assets of the company which include crypto assets, sports cars and sporting memorabilia.
William Sean ‘5Dimes Tony’ Creighton was the man who launched 5Dimes. He was kidnapped and killed in September 2018 when the DOJ investigation into 5Dimes was underway. Laura Varela took over 5Dimes assets after her husband’s death and informed the DOJ that she did not have full control over daily operations.
She worked together with the DOJ to sort out all of the concerns and allegations that were raised against the company. 5Dimes has put in place new processes and procedures that will ensure the company runs a smooth operation going forward.
Withdrawal Process For US Players
5Dimes was able to reach an agreement with the authorities that protected the company from having to share any customer information. The operator stopped offering betting services to its US players from Sep 21 and stopped allowing US players to withdraw their winnings as of Sep 25.
US players who are did not put in a withdrawal request before Sep 25 will now have to go to www.PlayerRefund.com to process their claims. 5Dimes has transferred all outstanding amounts to U.S based claims administrator Epiq who has posted information on the Player Refund website detailing the claims process.
5Dimes Push For Legalized U.S Sports Betting
A new company called 5Dimes Americas LLC has been registered in Delaware and will be the base for 5Dimes push into the U.S. sports betting market. It will now be up to individual states to review 5Dimes credentials before deciding whether they want to grant the Costa Rican betting operator a license to operate a sportsbook in their respective state.