5Dimes reaches $46.8 million settlement with US government

[The Buzz]

5Dimes has reached a $46.8 million settlement with the U.S. government following a federal money-laundering investigation, according to a settlement agreement obtained by ESPN on Wednesday.

5Dimes agreed to pay $15 million in cash, forfeit more than $30 million in assets and stop accepting wagers from U.S. customers while operating out of Costa Rica, according to the settlement agreement reached with the U.S. Attorney's Office for the Easten District of Pennsylvania. Earlier this month, 5Dimes suspended US operations.

From ESPN:

The settlement also absolves Laura Varela, the widow of 5Dimes owner William Sean Creighton, of any criminal conduct alleged against the sportsbook. Varela assumed responsibility for 5Dimes' assets after her husband was kidnapped in September 2018 and found dead a year later, but she did not have "day-to-day authority" over its operations, according to the settlement.

"The investigation was a complete success from our perspective," Michael Lowe, assistant U.S. Attorney for the Eastern District of Pennsylvania, told ESPN. "There was gambling going on, but we discovered it, we put a stop to it."
The non-prosecution agreement allows 5Dimes and Varela to pursue opportunities in the expanding American sports betting market. Varela, who fully cooperated with the investigation, made "significant changes" to 5Dimes's operations that make it "suitable for participating in lawful gaming operations across the world," according to the settlement agreement.

"We achieved the objective, which is, she is compliant with U.S. federal law right now," Maria M. Carrillo, assistant U.S. Attorney for the Eastern District of Pennsylvania, told ESPN. "What that means for her is she is not operating in violation of U.S. law, and she is not actively taking bets from U.S. bettors.

"Whether she's positioned well for regulators, that's up for the regulators to decide," Carrillo said. "She certainly is no longer in violation of federal law."

In an interview with ESPN, Varela said she is " very, very happy and very excited about what the new chapter of 5Dimes can be."

Read the article here: https://www.espn.com/chalk/story/_/i...ettlement-feds

Here is the press release from the U.S. DOJ:https://www.gpwa.org/article/5dimes-to-pay-$46-8-million-in-proceeds-to-resolve-criminal-investigation-237165

[Sherlock]

[Malikbhai]

Tony's kidnapping and then mysterious murder is beginning to make a lot of sense now.

[Malikbhai]

Also, after this, nothing is going to stop others from going legit. Ultimately, the money wins. Pay the fine, and go dine.

[Sherlock]

bad actor + 46.8 M + dead actor = good actor + stupid affiliates

[econfox]

"The non-prosecution agreement allows 5Dimes and Varela to pursue opportunities in the expanding American sports betting market. Varela, who fully cooperated with the investigation, made "significant changes" to 5Dimes's operations that make it "suitable for participating in lawful gaming operations across the world," according to the settlement agreement."


If they do come to the US and run the affiliate program the same way they did when they were offshore then it might workout. The US affiliate programs by Fanduel, Draftkings and William Hill are a joke compared to what they offered.

[MJM]

"The non-prosecution agreement allows 5Dimes and Varela to pursue opportunities in the expanding American sports betting market. Varela, who fully cooperated with the investigation, made "significant changes" to 5Dimes's operations that make it "suitable for participating in lawful gaming operations across the world," according to the settlement agreement."


If they do come to the US and run the affiliate program the same way they did when they were offshore then it might workout. The US affiliate programs by Fanduel, Draftkings and William Hill are a joke compared to what they offered.

Affiliates in the USA need to be licensed, and revenue share licensing is both difficult and expensive to achieve. 5D may be settling with the DOJ - but I can't think of a single state regulator that would possibly deem them licensable.

The only thing that makes sense here - in my opinion, is they are paying the penalty in order to make them saleable to deeper pockets in the regulated market. Some buyer will get dated tech and a customer db full of AOL email addresses