Lithuania’s Olympic Casino fined $9.2 million over BaltCap embezzlement case

Baltics operator Olympic Casino Group Baltija has been fined €8.4 million ($9.2 million) by Lithuania’s Gaming Supervisory Authority (LPT) for failing to prevent money laundering and encouraging high-risk gambling linked to a major financial crime.

The penalty follows an investigation into Šarūnas Stepukonis, a former partner at BaltCap, the Baltic region’s largest private equity firm. Stepukonis is accused of embezzling €42 million ($46 million) from the firm, gambling away €38 million ($41 million) at land-based and online casinos, including €6.4 million at Olympic Casino in Vilnius.  

The Lithuanian Gaming Supervisory Authority determined that Olympic Casino failed to investigate the source of Stepukonis’ funds and did not report suspicious transactions, violating anti-money laundering (AML) laws.  

“Instead of finding out whether Stepukonis had a gambling problem or informing the supervisory authority, Olympic Casino encouraged him to gamble even more,” LPT director Virginijus Daukšys said in a statement.  

Authorities also found that the casino provided Stepukonis with a €1.3 million incentive package that could only be used for gambling, further raising concerns over compliance failures.  

Stepukonis managed infrastructure investment funds at BaltCap, including those earmarked for Lithuania’s national soccer stadium project. A routine audit in November 2023 uncovered financial mismanagement, leading to his dismissal. BaltCap later reported the missing funds to the police.  

In January 2024, BaltCap filed a lawsuit against Stepukonis, Olympic Casino Group Baltija, and OB Holdings 1, the Estonian company behind the Olybet online casino brand.  

Authorities say Stepukonis lost over €31 million on Olybet.ee, a platform that investigators claim was operating in Lithuania without a valid gambling license.  

The lawsuit alleges both Olympic Casino and Olybet failed to uphold their legal obligations to prevent money laundering and problem gambling.  

The case has triggered a broader probe by the European Public Prosecutor’s Office and Lithuania’s Financial Crimes Investigation Service, which are investigating potential violations including:  

• Asset misappropriation  
• Illegal business activities  
• Tax evasion  
• Fraudulent accounting  
• Money laundering  

Authorities are now seeking to recover €31.6 million from the Estonian entity and €5.1 million from the Lithuanian casino.  

Stepukonis was arrested in February 2024 but has since been released under preventive measures, including electronic monitoring.