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Baltic casino operator Olympic Casino Group Baltija has been fined €8.4 million (US$9.2 million) for allowing Lithuanian national Šarūnas Stepukonis, a former private equity manager at BaltCap, to gamble away millions without oversight. Stepukonis was arrested in February 2024 after being accused of embezzling €42 million (US$46 million) from BaltCap, the largest private equity firm in the region. Prosecutors believe he lost around €38 million (US$41 million) at both land-based and online casinos.
Authorities determined that Stepukonis spent €6.4 million at the Olympic Casino in Vilnius, Lithuania, but the casino failed to conduct due diligence regarding the source of his funds, according to a ruling by Lithuania’s gaming authority, LPT. The casino also failed to submit suspicious activity reports (SARs) to financial regulators despite clear warning signs. LPT director Virginijus Daukšys stated, “Instead of finding out whether Stepukonis had a gambling problem or informing the supervisory authority, Olympic Casino encouraged him to gamble even more.” According to the LPT, the casino created an exclusive incentive package specifically for Stepukonis, allocating €1.3 million as a gambling bonus that could not be used for anything else. “Other incentives were also allocated,” Daukšys added.
Stepukonis was a partner at BaltCap and managed a fund that focused on infrastructure projects in the Baltic region. At the time of his dismissal, he was leading the development of Lithuania’s national soccer stadium, a project that has faced decades of financial hurdles since its original proposal in 1985. BaltCap fired him in November 2023 after a routine financial audit uncovered significant irregularities. The firm subsequently reported the matter to the authorities upon confirming the misappropriation of funds. In January 2024, BaltCap filed a lawsuit against Stepukonis, Olympic Casino Group Baltija, and OB Holdings 1, an Estonian company that owns the Olybet online casino brand.
Investigators found that Stepukonis had lost more than €31 million on the Olybet.ee website, and authorities are now working to recover these funds. They allege that OB Holdings 1 accepted his bets without a valid Lithuanian gambling license, making the transactions unlawful. The lawsuit claims the casinos failed to uphold legal obligations related to anti-money laundering measures and responsible gambling practices. Stepukonis is reportedly cooperating with authorities. Although he was released from detention last year, he remains under strict preventative measures, including mandatory electronic monitoring, as he awaits trial.
By fLEXI tEAM
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