Baltic casino operator Olympic Casino Group Baltija has been fined €8.4 million (US$9.2 million) for failing to prevent a rogue BaltCap private equity manager from gambling away millions without oversight.
€42M Embezzlement Scheme
Lithuanian national Šarūnas Stepukonis was arrested in February 2024 on suspicion of embezzling €42 million (US$46 million) from BaltCap, the region’s largest private equity firm. Prosecutors believe he gambled approximately €38 million (US$41 million) at both land-based and online casinos.
Ignoring Red Flags
Stepukonis lost €6.4 million at the Olympic Casino in Vilnius, Lithuania, yet the casino failed to investigate the source of the funds, according to the country’s gaming authority, LPT. Despite clear warning signs, no suspicious activity reports (SARs) were submitted to financial regulators.
Instead, LPT director Virginijus Daukšys stated, “Rather than addressing Stepukonis’ gambling problem or informing authorities, Olympic Casino encouraged him to bet even more.”
An exclusive incentive package worth €1.3 million was offered to Stepukonis, with the entire sum earmarked for gambling. Additional perks were also provided to keep him playing.
Public Funds Squandered
Stepukonis was a partner at BaltCap and managed a fund dedicated to infrastructure projects in the Baltic region. At the time of his dismissal, he was overseeing the construction of Lithuania’s long-delayed national soccer stadium, a project in development since 1985.
BaltCap terminated Stepukonis in November 2023 after an internal audit uncovered financial mismanagement. When further investigation revealed missing funds, the firm alerted law enforcement.
In January 2024, BaltCap filed a lawsuit against Stepukonis, Olympic Casino Group Baltija, and OB Holdings 1, the Estonian parent company of the Olybet online casino brand.
€31M Lost to Olybet
Investigators found that Stepukonis lost over €31 million on the Olybet.ee website, despite the platform allegedly operating without a valid Lithuanian gambling license. Authorities are still working to recover the missing funds.
The lawsuit claims that both the land-based and online casinos failed in their legal duty to prevent money laundering and protect against compulsive gambling.
Stepukonis is reportedly cooperating with authorities. He was released from custody last year and remains under strict monitoring while awaiting trial.
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