5Dimes to forfeit $47m in settlement with Department of Justice
Costa Rican-based sportsbook seeking to become licensed in the States as it complies with Pennsylvania Attorney’s office investigation
US-facing offshore betting operator 5Dimes has agreed to forfeit more than $46.8m in a settlement with the Department of Justice (DoJ) for taking illegal bets in the US between 2011 and 2020.
The DoJ agreed not to pursue criminal prosecution of 5Dimes or now-owner of the company, Laura Varela, as part of the settlement.
The company was founded by US citizen and now-deceased William Sean Creighton in Costa Rica in 2011, when it began accepting bets from US bettors via 5Dimes.eu and transferring winnings to their credit cards via shell companies.
In 2016, the US Attorney’s Office for the Eastern District of Pennsylvania launched an investigation with Homeland Security into 5Dimes’ illegal activity, including offshore gambling, money laundering and wire fraud.
According to a 5Dimes statement, the company complied with the investigation in 2019, with Varela identifying criminal assets worth more than $46m.
The operator stopped taking bets from US customers on September 21. It notified users to withdraw all funds by September 25, or have them transferred to a third-party claims administrator.
“5Dimes stopped taking bets from US customers as of September 21 until it is reconstituted as a new, legal and licensed entity in the US,” the company said.
The company suggested the settlement should make the company eligible to apply to enter the legal, regulated US gaming market under a new corporate structure in full compliance with US law.
Varela, who was Creighton’s wife, said: “Along with a team of trusted advisors, I am exploring how we might relaunch 5Dimes as a legal sportsbook and casino in the legal, regulated US market to continue serving our many loyal customers.”
A new US registered parent-company, dubbed 5D Americas LLC, has been established in Delaware. The operator did not confirm whether it would seek to apply directly for betting licences in the States or sell off the business or its database to another party.
Creighton, who the DoJ says used various aliases to hide his control of the business, was kidnapped in September 2018 and subsequently murdered. His remains were discovered a year later, with police ruling his death to be a homicide.
During the investigation into 5Dimes that began in 2016, the Department for Homeland Security Investigations (HSI) in the US seized approximately $3,376,189 in cash and other assets belonging to Creighton.
This included a 1948 George Mikan rookie basketball card, which Creighton purchased for more than $400,000, which at the time was the most expensive baseball card ever sold, as well as a 1970 Pete Maravich rookie basketball card and rare coins worth $715,000.
5Dimes and Varela have agreed to forfeit these seized assets, as well as have help in the collection and forfeiture of additional assets worth more than $26m in total.
In addition, 5Dimes and Varela have agreed to forfeit around $2m seized by Costa Rican law enforcement, and to pay and consent to the forfeiture of an additional $15m of the proceeds of the criminal conduct.
The 5Dimes case is reminiscent of PokerStars’ settlement in 2012, during which the Isle of Man-based operator was ordered to forfeit $547m by the DoJ and reimburse non-US customer balances totalling $184m.
The firm took over the defunct Full Tilt Poker’s assets and was licensed in New Jersey in 2015.