With iGaming, sports betting and even poker in the United States pushing for a more legalized landscape, established gaming and betting firm 5Dimes has announced the suspension of its products for the US market. The company will try to enter the market in a legitimate capacity and operate on a state-by-state basis as opposed to its current offshore status.
Legalization Push in the Prompts 5Dimes to Suspend US Service
Since the United State legalized sports betting on a federal level, over 20 states have rushed to set-up the sports betting industry in their jurisdiction. The move was accompanied by a lot of speculation, and some industry observers argued that offshore sportsbooks will most likely shut down and try to enter the battle for a piece of the legal market.
This is precisely what has happened with 5Dimes, a respected well-rounded sports betting and gambling firm that has operated from outside the United States but has decided to suspend operations to US customers effective on September 21.
The change, the company said in an official release, was necessitated by the “evolving legal landscape in the United States,” and specifically the fact that the sports fans are now finding quicker, safer, and more trusted sportsbooks closer to home to bet on.
Customers will have until September 25 to empty their balances and any account money that hasn’t been claimed by September 30 will be handled by a third-party claims administrator moving forward.
What’s Next for 5Dime? A Cool-down Period
While 5Dimes will want to enter into the market as quickly as possible, it’s not going to be easy or immediately possible. Most states have passed legislation that prohibits offshore operators from holding a license in a regulated market for a period after suspending operations offshore.
In other words, 5Dimes will have to put its negotiating skills in action and seek to secure the states and deals it can, perhaps often cutting better lines. Speaking of lines and odds, offshore operators are usually the ones to offer better rates overall, and that is what gives them somewhat of an edge.
Entering the US market, though, won’t be easy or quick. It will most likely have to see some concessions being made by 5Dimes and find a lenient state that is willing to accept the brand. Brendan Bussman from Global Market Advisors expressed a similar sentiment:
“While the intent of this is good, this brings to light additional questions of who will be their U.S. partner and how they will pass suitability on a state by state basis. For those that have operated online or fantasy sports illegal in the past, some regulators have a long memory and it may take some time before they will even be able to be licensed or operate.”
5Dimes’ footprint is hardly just limited to sports betting, though. The operator has a distinguished product across several product verticals, including casino, poker, bingo, and other related services.
The company was established back in 1996 in San Jose, Costa Rica and it quickly gained prominence for its customer-friendly approach, phone betting options, and “reduced juice,” i.e. charging smaller bookmaker fees than most competitors.
5Dimes is probably cutting an important lifeline, but the company will surely be able to retain its US player base in some capacity. Meanwhile, the website will continue to operate elsewhere, including Asia and the European Union.