Costa Rica-based online sportsbook 5Dimes has reached a settlement with the US government in a move that clears the way for its future entry into the legal US sports betting market.
5Dimes announced Wednesday that it has agreed to forfeit $46.8 million in cash and assets as part of its settlement agreement with the US Attorney’s Office for the Eastern District of Pennsylvania.
The sports betting operator will pay $15 million in cash and forfeit more than $30 million in various assets, including cryptocurrency, sports memorabilia, and sports cars. The company did not turn over customer information to the EDPA as part of its settlement.
https://www.casinonewsdaily.com/2020/09/16/5dimes-confirms-plans-to-explore-regulated-us-sports-betting-space/
The recently reached agreement resolves 5Dimes’ long-standing legal troubles with the Justice Department. The US government has been investigating the offshore sportsbook for serving US customers as well as for money laundering, wire fraud, and different other offenses.
The settlement also clears the current owner of 5Dimes, Laura Varela, of wrongdoing. The online sportsbook was launched in the early 2000s by Ms. Varela’s late husband, William Sean ‘5Dimes Tony’ Creighton.
The investigation into 5Dimes’ US-facing operations was already under way when Mr. Creighton was kidnapped in September 2018. Ms. Varela assumed control over the 5Dimes assets after her husband was found dead the following year.
She told the Justice Department that she did not have “day-to-day” authority over the sportsbook’s operations.
Settlement Clears 5Dimes for Legal US Betting Market Entry
The non-prosecution agreement between 5Dimes’ management and the US government allows the company to pursue expansion opportunities in the regulated US sports betting market.
In a statement on its website, the bookmaking firm said that it is now able to apply to enter the US wagering space “under a new corporate structure, free and clear of any restrictions on the use or transfer of its assets and in full compliance with US law.”
Under its settlement with the Justice Department, 5Dimes has agreed to stop taking bets from US customers. The company announced on September 7 that it would suspend betting for US customers on September 21, suggesting that it would pursue entry into the regulated market.
Commenting on what is next for 5Dimes in the US, Maria M. Carrillo, assistant US Attorney for the EDPA, said that the settlement means that the bookmaker is no longer operating in violation of US law and that it is now up to gambling regulators in different US states to decide whether 5Dimes and its owner, Ms. Varela, are “positioned well” to operate in these states.
When Ms. Varela assumed responsibility of 5Dimes, she contacted the Justice Department to resolve the long-time probe into the company’s US business. Prosecutors said that the new owner of the betting firm had restructured it to become “suitable for participating in lawful gaming operations across the world.”
5Dimes is understood to have established a new corporate entity, 5Dimes Americas LLC in Delaware as it prepares to pursue entry into the US sports betting mix.
Ms. Varela said in an interview with ESPN that she is “very, very happy and very excited about what the new chapter of 5Dimes can be.”
Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories
