5Dimes are now charging 3% for Bitcoin payouts for both players and affiliates. We received this explanation from their payouts department:
- “A couple of days ago our Bitcoin payouts started having a fee of a 3% of the payout amount as other payout methods like cashier checks or bank wires. This fee is not charged applied to the Bitcoin exclusive depositors customers, since you have an affiliate account your payouts thru Bitcoin will always be charged. However, you can use your Free Payout Day in order to receive payments without fees. You can request a payout on Mondays between 9am up to 1pm ET and that payout will be processed with no fees, the conditions are that you need to request the payout into the time frame and also you cannot have any previous payouts processed in the last 30 days. In case that you do not want the free payout day to be on Mondays, you can change your free payout day to another day of the week, but you wont be able to change it anymore.”
Betting Affiliate Programs then followed up with the 5Dimes affiliate department. They confirmed the new changes, adding:
- “Due to the price of Bitcoin being too volatile and since we pay a fixed fee amount that cannot be avoided, plus a percentage fee for every transaction via Bitcoin, payouts through this method will now hold a 3% fee unless your account is Bitcoin Exclusive OR if you request the payout on your Free Payout Day. This rule applies to affiliate accounts as well. Affiliates are encouraged to make use of their Free Payout Day in order to avoid any fees.”
The problem here is that this policy disincentivizes both players and affiliates. Though players can likely get their account labelled as ‘bitcoin exclusive’ if they only deposit via that method, affiliates are lumbered with the new rules with no way out.
Affiliates (and players who are not ‘bitcoin exclusive’) may run into the low withdrawal limits that 5Dimes has ($10,000 a time for BTC). This will particularly affect medium-sized and larger affiliates whose earnings are over the $10k mark per month. It also removes the ability to withdraw affiliate funds weekly, unless you suffer the 3% deduction – which is a ridiculous requirement given it is a near free transaction for 5Dimes to make.
Why are these changes bad and short-sighted?
- Players can bet anywhere else without jumping through hoops to get a free bitcoin withdrawal.
- This new policy will cost 5Dimes the goodwill of some players and affiliates.
- The loss of players will cost 5Dimes, and their affiliates, money by reducing the active player bases.
- Large affiliates particularly are penalized by this 3% charge over $10,000 per 30 days criteria.
- As a result of the previous point, large affiliates will significantly reduce exposure for 5Dimes.
- With the increased prominence of the regulated USA sports betting market and the increased reliance that unregulated market operators now have on affiliates, to short-change affiliates is counter-intuitive.
Is this the first bad move by the otherwise excellent 5Dimes Sportsbook since the sad and brutal loss of their founder, who was kidnapped and murdered? It did seem things were carrying on in the same vein as before. Now, not so much.