5Dimes intends to freeze its U.S. operations beginning September 21. The Costa Rica-based offshore sportsbook expects to create a new business venture, according to Legal Sports Report.
“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 customers,” the sportsbook said.
Current customers can claim balances through September 25, after which funds will be transferred to a third-party administrator, who will endeavor to get them back to account holders.
But going legit in the U.S. presents a problem based on how other black-market sportsbooks were treated. New Jersey regulators repeatedly have warned such illegal books operating in the state.
The sudden switch speaks to the growing pressure on business from the expanding U.S. sports betting market. For example, last year Bovada and BetOnline stopped taking bets from New Jersey residents.
