Costa Rica-based online sportsbook 5Dimes has issued a notice to its customers informing them that it will be temporarily ceasing its U.S. operations effective September 25, 2020.
The move is seen by industry experts as part of a bigger plan by 5Dimes to legitimize its operations in the United States. 5Dimes has operated in the United States an an offshore sportsbook. But with the U.S. Supreme Court’s decision to strike down the Professional and Amateur Sports Protection Act in 2018, states have been allowed to pass their own legislation that will legalize sports betting. Since then, more than 20 states have legalized sports betting in their jurisdiction and that number is expected to increase further. With the legal sports betting market growing in the United States, 5Dimes is aiming to be among the legal gambling operators in the country.
In a social media message, the sportsbook said:
“5Dimes is excited to announce that it is embarking on a new business venture. 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. 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.”
To facilitate the temporary cessation, 5Dimes will stop accepting best from U.S. markets at 12am ET of September 21, 2020. Customers have been informed to withdraw their balances until 12 am ET of September 25, 2020.
All customer funds remaining on 12 am ET of September 30th will be transferred to a third-party claims administrator who will attempt to deliver the funds to the account holder. All funds undelivered by 12 am ET of September 30, 2021 or one year from now, will be deemed abandoned by the owner.
State By State Entry
After its temporary closure, sources say that 5Dimes will attempt to re-enter the U.S market state by state, seeking the approval of state regulators. The United States is one of the biggest sports betting markets in the world. But American punters have always been wary of offshore betting sites. 5Dimes hopes that becoming legal in the U.S. will help it earn a bigger share of the pie.
Also, Mature U.S. markets like Nevada and New Jersey are strict in their laws against offshore gambling operators in the last five years. Offshore betting site Bovada and BetOnline have stopped accepting New Jersey customers since last year because of issues with state regulators. Once 5Dimes gets its U.S.licenses, they will no longer have to worry about suffering the same fate.