A federal ban on banks processing financial transactions for offshore betting sites has the U.S. government looking into gift card activity by 5Dimes.
A popular offshore sports book and casino betting site, federal investigators suspect 5Dimes of using Amazon.com to pay off almost $2 million in winnings from offshore betting accounts owned by bettors in the United States.
Federal investigators say 5Dimes laundered almost $2 million by using Amazon.com to pay winning clients in the U.S. by purchasing items the winners requested or by giving them gift cards for the online retailer.
In an application for a federal seizure warrant, investigators for the Department of Homeland Security say Costa Rica-based 5 Dimes “has developed an alternative to the traditional online financial payment methods, which is unavailable to 5Dimes under federal law, in order to operate its illegal betting operation in the U.S.”
Homeland Security wants to seize about $159,000 in 15 Amazon.com accounts it says were deposited by 5Dimes and have processed some $1.9 million in total transactions.
Federal investigators say 5Dimes does not charge its U.S. clients for paying winnings via Amazon.com and offers a 10% bonus when winners choose that payment method.
The transactions violate Amazon.com’s terms of use.
While 5Dimes faces a potential federal seizure, Canadian i-gaming company Intertain announced it is exploring a potential sale and has hired Canacord Genuity to look into selling the company wholly or in part. Intertain also appointed three board members to oversee the process.
Intertain also named Pala Interactive CEO Jim Ryan to its board of directors and promoted David Danzier to chairman. Stan Dunford and Mark Redmond resigned from the board of directors, and Intertain CEO John Kennedy Fitzgerald said he intends to resign.
