Offshore gambling site laundered $2 million in Amazon gift cards, Feds say

Mar 15, 2016, 7:53 pm (98 comments)

Online Gambling

The operators of an offshore gambling website that accepts online lottery wagers used Amazon gift cards to launder nearly $2 million over the past few years, a Department of Homeland Security investigator alleged in a recent application for a seizure warrant filed in the U.S. District Court in Philadelphia.

The filing alleges that the Costa Rica-based gambling site, 5Dimes, instructed U.S. customers to use Amazon gift cards to fund their 5Dimes online gambling wagers, in an effort to skirt the U.S. financial system. The feds say 5Dimes also paid out winnings to U.S. customers in Amazon gift cards, or in merchandise they picked out on Amazon.com.

"[T]he investigation has determined that 5Dimes 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.," the document reads. "This illegal alternative relies on the use of [Amazon gift cards], in violation of Amazon's terms of service."

The Homeland Security warrant application makes the case to seize a total of $159,000 spread among 15 Amazon accounts believed to be tied to 5Dimes. Over the years, the Amazon accounts, which bear names such as GC Lover and Blue Iguana, have held nearly $1.9 million in funds combined. Amazon has shut down the GC Lover account, according to the filing.

5Dimes does not charge a fee for bettors who fund their accounts with Amazon gift cards. The company has instructed bettors to purchase these gift cards at a traditional retail store, in cash, and email a photo of the card information along with a receipt. The gambling site also offers bettors a 10 percent bonus if they choose to receive their winnings in the form of Amazon gift cards added to their Amazon account.

The company also used the gift cards to purchase merchandise, such as 100 office chairs and 50 custom sweatshirts silkscreened with the 5Dimes logo, the application says.

An Amazon spokesman declined to comment. The betting site did not respond to a message sent to a company email account.

re/code, Lottery Post Staff

Comments

mypiemaster's avatarmypiemaster

This is rather silly. Don't the feds have anything better to do?. Thumbs Down

MzDuffleBaglady's avatarMzDuffleBaglady

Interesting.

Lildarryl

Quote: Originally posted by mypiemaster on Mar 15, 2016

This is rather silly. Don't the feds have anything better to do?. Thumbs Down

Very silly.   They hating

luckydoc

Quote: Originally posted by Lildarryl on Mar 15, 2016

Very silly.   They hating

You on point Lildarryl. It's always something.

ohiopick3's avatarohiopick3

Hmm? Does not look good for them. If I bet off shore, I would expect cash, not gift cards.

They will be under the microscope now. I have never bet off shore in the past and do not plan on it.

Plenty to do in the State of Ohio for me any ways at this time.

US Flag

KAL035

Quote: Originally posted by Lildarryl on Mar 15, 2016

Very silly.   They hating

Was bound to happen sooner or later. That's why I never used this service. Was never willing to chance having to forfeit any money that I might happen to have in one of their accounts that might be subject to government seizure or operator theft.

picktowin's avatarpicktowin

I always thought it was a scam.

I win I know I can go to store and get my money.

Why should I wait for my money and also can't get what you win all at once.

Sure sounds like a scam to me.

Can't believe people are so stupid to even do it online !!

Stack47

"in order to operate its illegal betting operation in the U.S"

Our U.S. LP members who claim they can wager 25 cents and collect $900 to $1 never said their winnings are paid in Amazon gift cards.

Lildarryl

most lp members who preach all states.  Who predict all states. Play Allstate's. Use 10nickels    You have options for deposit and withdrawals.   Lp is based out of NJ USA. But has worldwide members.   Me personally I'd never want a Amazon Gift Card.  Give me the moolah.   

destinycreation

Quote: Originally posted by Lildarryl on Mar 15, 2016

most lp members who preach all states.  Who predict all states. Play Allstate's. Use 10nickels    You have options for deposit and withdrawals.   Lp is based out of NJ USA. But has worldwide members.   Me personally I'd never want a Amazon Gift Card.  Give me the moolah.   

I assume 10nickels is a JOKE !!! LOL 

This offshore online gambling company that offers casino and lottery gambling is SHADY, SHADY, SHADY !!!  Mad

I'm surprised TODD even wrote an article about this company !!! Eek

We are not supposed to mention the company in this article on LP !!!  LP Members who use this company's services to play online, should view their illegal activities as a RED FLAG, that the company's days are probably numbered !!!  It would be a WISE IDEA for LP Members to CLOSE their ACCOUNTS with this company, and SUSPEND ALL ONLINE GAMBLING through this offshore company, before it is too late and you lose all of the remaining money in your account !!!  This company IS NOT LEGALLY OBLIGATED to REFUND you any money whatsoever from your account, or PAY YOU for any WINNINGS, and you have NO LEGAL RECOURSE against them !!!  No Nod

GET OUT NOW  !!!  Chair

 

Focus on playing the lottery in your own state legally !!! Yes Nod

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by destinycreation on Mar 15, 2016

I assume 10nickels is a JOKE !!! LOL 

This offshore online gambling company that offers casino and lottery gambling is SHADY, SHADY, SHADY !!!  Mad

I'm surprised TODD even wrote an article about this company !!! Eek

We are not supposed to mention the company in this article on LP !!!  LP Members who use this company's services to play online, should view their illegal activities as a RED FLAG, that the company's days are probably numbered !!!  It would be a WISE IDEA for LP Members to CLOSE their ACCOUNTS with this company, and SUSPEND ALL ONLINE GAMBLING through this offshore company, before it is too late and you lose all of the remaining money in your account !!!  This company IS NOT LEGALLY OBLIGATED to REFUND you any money whatsoever from your account, or PAY YOU for any WINNINGS, and you have NO LEGAL RECOURSE against them !!!  No Nod

GET OUT NOW  !!!  Chair

 

Focus on playing the lottery in your own state legally !!! Yes Nod

LOL.

I'll say this destiny. With the color font and bold print, and exclamation points, you have a flair for drama.

Groppo's avatarGroppo

Quote: Originally posted by rcbbuckeye on Mar 15, 2016

LOL.

I'll say this destiny. With the color font and bold print, and exclamation points, you have a flair for drama.

For me, the only lotto gambling consists of going to my local store, and buying my lotto tickets, where they must be printed before my eyes.

That's it, nothing else. There is just too much of this or that corrupt thing going on.

dr65's avatardr65

They'll confiscate records and track down players. They'll have a few bones to pick with them.

Authorities in charge of tracking down people who ordered their tax free tobacco products

online made sure purchasers were identified and billed for the amount due. I know of some-

one who got a $3,000 bill.

KAL035

Quote: Originally posted by destinycreation on Mar 15, 2016

I assume 10nickels is a JOKE !!! LOL 

This offshore online gambling company that offers casino and lottery gambling is SHADY, SHADY, SHADY !!!  Mad

I'm surprised TODD even wrote an article about this company !!! Eek

We are not supposed to mention the company in this article on LP !!!  LP Members who use this company's services to play online, should view their illegal activities as a RED FLAG, that the company's days are probably numbered !!!  It would be a WISE IDEA for LP Members to CLOSE their ACCOUNTS with this company, and SUSPEND ALL ONLINE GAMBLING through this offshore company, before it is too late and you lose all of the remaining money in your account !!!  This company IS NOT LEGALLY OBLIGATED to REFUND you any money whatsoever from your account, or PAY YOU for any WINNINGS, and you have NO LEGAL RECOURSE against them !!!  No Nod

GET OUT NOW  !!!  Chair

 

Focus on playing the lottery in your own state legally !!! Yes Nod

Good advice, if not too late already....

Newkids06

Thats bull the feds are always hating.

 

For those of you that dont know that website pays 900-1 on pick 3 and pick 4. An to top it off you can also play for a quarter minimum. Often times ill box 20 double digit pick 3 numbers for a quarter each.  Wagering 5 bucks total with a chance to win 75. 

At the store those same bets would cost $10 and I would win $80.

KAL035

Quote: Originally posted by Newkids06 on Mar 16, 2016

Thats bull the feds are always hating.

 

For those of you that dont know that website pays 900-1 on pick 3 and pick 4. An to top it off you can also play for a quarter minimum. Often times ill box 20 double digit pick 3 numbers for a quarter each.  Wagering 5 bucks total with a chance to win 75. 

At the store those same bets would cost $10 and I would win $80.

And to top that off, now you'll be getting a hefty tax bill from Uncle Sam on the enhanced payouts.

Lottonovice's avatarLottonovice

Wow. This  is what they did when they  shut  down  all  the off shore poker  sites   a  few  yrs  ago  and  seized all  US  players  accts. Hubby  who works  overseas and played  from  there but  was registered as  US player  had a  few hundred  tied up in his  acct  for  a couple of yrs.  There  were no  tax ramifications  because he had never collected winnings.  But  in  deal  feds  made  with off shore  acct  they were forced to make  good- return  balance of  in  his  account--US players . But  took  a  couple of yrs for  it to be  settled.  He no longer plays online.   Sure  hope it  does not go that way  for US online  lotto players. 

 

Good  luck  all. Lep

destinycreation

Quote: Originally posted by Newkids06 on Mar 16, 2016

Thats bull the feds are always hating.

 

For those of you that dont know that website pays 900-1 on pick 3 and pick 4. An to top it off you can also play for a quarter minimum. Often times ill box 20 double digit pick 3 numbers for a quarter each.  Wagering 5 bucks total with a chance to win 75. 

At the store those same bets would cost $10 and I would win $80.

Did you ever fund your account or receive payment for winnings with Amazon Gift Cards ??

EZMONEE's avatarEZMONEE

If you never been or played on the site, how can you testify and assume anything. I think we got some LP members working for the FEDS!! You don't have to go to an online site to get cheated or robbed, that can happen at ur local lottery retailer, we here about it all the time. So stop the hating people!! If u don't choose to play online that's ur prerogative!!

KAL035

Quote: Originally posted by EZMONEE on Mar 16, 2016

If you never been or played on the site, how can you testify and assume anything. I think we got some LP members working for the FEDS!! You don't have to go to an online site to get cheated or robbed, that can happen at ur local lottery retailer, we here about it all the time. So stop the hating people!! If u don't choose to play online that's ur prerogative!!

Ummm, how about the fact that at the present time that it's illegal ? It's also your prerogative whether or not you rob the corner store, duh !

EZMONEE's avatarEZMONEE

Quote: Originally posted by KAL035 on Mar 16, 2016

Ummm, how about the fact that at the present time that it's illegal ? It's also your prerogative whether or not you rob the corner store, duh !

This is all comedy!!! Duh!! Don't throw stones!!

KAL035

Quote: Originally posted by EZMONEE on Mar 16, 2016

This is all comedy!!! Duh!! Don't throw stones!!

Not so much comedy when they come knocking at the door to have a chat with you about tax evasion !

EZMONEE's avatarEZMONEE

Quote: Originally posted by KAL035 on Mar 16, 2016

Not so much comedy when they come knocking at the door to have a chat with you about tax evasion !

Not worried about that!!

chrissy16

Todd you are so quick to pounce on this story, I wonder why?.  It's no secret you have it out for 5coins, I bet you couldn't wait to re-post an article such as this.  Your source is bogus, maybe it was a good idea to contact 5coins first to get their side of the story.  This article does nothing but inflames fear amongst US players.  Yes, Bill Frist made online gambling illegal but only for political reasons.  The bottom line is you're in bed with the states because it serves the interest of LP, seems to me that's all you care about.  You have no problem selling memberships here, to help facilitate US players in gambling, there's no problem there.  So, what is the gripe about, if your position is such, that you're somehow protecting US players from being burned I would argue otherwise, you're not. I find you to be nothing but an hypocrite and a tyrant. You don't want anyone copying  LP's ideas but as soon as <snip> went down, you stole their calendar idea.  Now LP have calendars and now since you have them and they no longer around, you want to limit the calendars to only 1 year back, so anyone who wants to look back further than a year, would have to PAY.  LP is for LP only, you care nothing about the players here, so much so that not only for those that do willing pay, can't speak freely on what suppose to be a community board.  Mention one thing about online gambling here you come, doesn't even matter the nature of the conversation. You just disgust me with this article, really.  If anything they should be applauded for actually trying to pay US players but I know you don't see it that way.  Your not a player, you don't purchase tickets, you don't use any of these systems here.  You make your money from selling memberships and ads or whatever else bottom line is you're not a player.  I think you should let the people here draw their own conclusions.

 

Are you going to delete my post and suspend me for speaking my mind?  But, you know what that would mean, it would mean exactly what I posted that you're a tyrant.  I will try to log back on later, I'll see what happens.

 

You have their name even banned, please explain to me how this is a public service, I'll wait

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

chrissy16

And just to add if you really want to do something constructive, why don't you help online gaming become a reality?

Lildarryl

Quote: Originally posted by KAL035 on Mar 16, 2016

Not so much comedy when they come knocking at the door to have a chat with you about tax evasion !

It's not tax evasion if you're not winning any money. Even at 900.to 1. Most folks still not winning.   BTW. Don't get ur pressure high concerned about off shore number houses.      It's illegal to receive oral sex in Georgia.  I bet that didn't stop you from receiving it

Lildarryl

Quote: Originally posted by chrissy16 on Mar 16, 2016

Todd you are so quick to pounce on this story, I wonder why?.  It's no secret you have it out for 5coins, I bet you couldn't wait to re-post an article such as this.  Your source is bogus, maybe it was a good idea to contact 5coins first to get their side of the story.  This article does nothing but inflames fear amongst US players.  Yes, Bill Frist made online gambling illegal but only for political reasons.  The bottom line is you're in bed with the states because it serves the interest of LP, seems to me that's all you care about.  You have no problem selling memberships here, to help facilitate US players in gambling, there's no problem there.  So, what is the gripe about, if your position is such, that you're somehow protecting US players from being burned I would argue otherwise, you're not. I find you to be nothing but an hypocrite and a tyrant. You don't want anyone copying  LP's ideas but as soon as <snip> went down, you stole their calendar idea.  Now LP have calendars and now since you have them and they no longer around, you want to limit the calendars to only 1 year back, so anyone who wants to look back further than a year, would have to PAY.  LP is for LP only, you care nothing about the players here, so much so that not only for those that do willing pay, can't speak freely on what suppose to be a community board.  Mention one thing about online gambling here you come, doesn't even matter the nature of the conversation. You just disgust me with this article, really.  If anything they should be applauded for actually trying to pay US players but I know you don't see it that way.  Your not a player, you don't purchase tickets, you don't use any of these systems here.  You make your money from selling memberships and ads or whatever else bottom line is you're not a player.  I think you should let the people here draw their own conclusions.

 

Are you going to delete my post and suspend me for speaking my mind?  But, you know what that would mean, it would mean exactly what I posted that you're a tyrant.  I will try to log back on later, I'll see what happens.

 

You have their name even banned, please explain to me how this is a public service, I'll wait

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<snip> boo you went in BanditOn T.o. double DGreen laugh

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

Lildarryl

Quote: Originally posted by chrissy16 on Mar 16, 2016

And just to add if you really want to do something constructive, why don't you help online gaming become a reality?

it's coming soon. Illinois let you play pick 3/4 online.   

Deo-nonfortuna

Quote: Originally posted by Newkids06 on Mar 16, 2016

Thats bull the feds are always hating.

 

For those of you that dont know that website pays 900-1 on pick 3 and pick 4. An to top it off you can also play for a quarter minimum. Often times ill box 20 double digit pick 3 numbers for a quarter each.  Wagering 5 bucks total with a chance to win 75. 

At the store those same bets would cost $10 and I would win $80.

Yup, they pay almost twice as much as any state lotto. They are also one of the most popular web destinations for online gamblers. Feds are just like the cops, they only show up when ur trying to have a good time. Maybe they should pay the Feds with DD gift cards.

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