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....

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