The offshore sportsbook, 5Dimes, dropped some major news on Labor Day.
Popular offshore sportsbook 5Dimes announced today that it is leaving the U.S. market and will stop taking online bets from U.S. customers on Sept. 21. Bettors are instructed to request withdrawals by Sept. 25. (First reported by @BradAllenNFL). pic.twitter.com/STgFI37K2j
— David Payne Purdum (@DavidPurdum) September 7, 2020
5Dimes looks to be putting a halt to its U.S. operations in hopes of entering the U.S. market at a later date, per the 5Dimes release. “In order to do this, we need to temporarily suspend our service of the U.S. market so that we can launch our new operations with a fresh start,” according to the statement.
Starting September 21, U.S. customers will not be able to place bets with 5Dimes and must start requesting their money by September 25. U.S. customers have until September 30, 2021, to collect their money before a third-party administrator deems the property abandoned.
This is big news for the Costa Rican sportsbook. Before sports betting began to blow up in the U.S., 5Dimes was a popular offshore book that U.S. customers used often. Over the last few years, U.S. activity has declined for 5Dimes. However, 5Dimes could see this as an opportunity to reclaim some customers if they enter back in.
What is Next for 5Dimes?
Industry experts are still uncertain about what 5Dimes plans to do next. The U.S. market had a huge impact on the offshore sports betting empire, but the expansion of sports betting in the U.S. could be changing up its business plan.
In their statement, 5Dimes did say to customers, “We wish we could tell you everything about our plans, but for now, please stay tuned and know we will soon reward your loyalty with extraordinary gaming experiences.”
The message feels like they will do their best to keep U.S. customers around whenever they pop back up.
There is a strong chance they try to enter the U.S. sports betting market as well. This could cause some headaches for the Costa Rican company, but this could be a move that will be worth their time in the long-term.
They will first need approval from the states, which could be difficult, as 5Dimes has been operating illegally in the U.S. for quite some time. Also, 5Dimes would have to get state by state approval to enter markets, as well. States like New Jersey have encouraged their customers to use sportsbook here in the U.S. instead of offshores like 5Dimes and even Bovada.
Bovada and rival offshore sportsbook BetOnline stopped taking bets in the Garden State last year as competition from regulated U.S. sportsbooks became too much for the offshore companies. The same thing can be said for 5Dimes. Now, they have to try to get states like New Jersey to give them sports betting licenses. Right now, that will be easier said than done.
Offshores in the U.S.
The offshore sports betting market is in flux right now. With some sportsbooks pulling operations in U.S. states or throughout the country, some sportsbooks are forming partnerships with professional leagues in the U.S.
Yes, that’s right. Some offshore sportsbooks are taking advantage of the opportunity.
Another Costa Rican sportsbook, BetCris, recently partnered with Major League Baseball in hopes of expansion thanks to the Latin American players that play in America. In 2017, 27.4 percent of all MLB players were from Latin countries, which could create a huge opportunity for BetCris if they can capitalize on it.
Not to mention, BetCris partnered with the NFL early Tuesday morning. The NFL has expanded its footprint into Mexico with a yearly game played in the country. Thanks to BetCris’ expansion into Mexico, the partnership allowed for BetCris to become the first sportsbook partner with the NFL in Latin America.
Some offshore’s are jumping ship in the U.S. while others are taking advantage of opportunities.