5Dimes, a Costa Rica-based sportsbook popular with U.S. bettors, 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.
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. The settlement also absolves Laura Varela, the widow of 5Dimes owner William Sean Creighton, of any of the 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.”