Baltic casino operator Olympic Casino Group Baltija has faced a penalty of €8.4 million (US$9.2 million) for permitting an errant BaltCap private equity manager to wager millions without oversight or safeguards. 

Lithuanian national Šarūnas Stepukonis was detained in February 2024. He’s believed to have embezzled €42 million (US$46 million) from BaltCap, the largest private equity firm in the region. Prosecutors suspected he lost approximately €38 million (US$41 million) of that money at both land-based and online casinos. 

Warnings Overlooked 

Stepukonis spent €6.4 million at the Olympic Casino in Vilnius, Lithuania, which did not take measures to investigate the origins of the money, as stated by the ruling of the nation’s gaming authority, LPT. The casino also failed to submit suspicious activity reports (SARs) to financial authorities, even with significant red flags present, as stated by LPT director Virginijus Daukšys. 

“Instead of finding out whether Stepukonis had a gambling problem or informing the supervisory authority, Olympic Casino encouraged him to gamble even more,” Daukšys said in a statement. “An individual incentive package was prepared for him. A total of €1.3m was allocated for this. This ‘bonus’ could only be spent on gambling. Other incentives were also allocated.”

Stadium Fund Embezzled 

Stepukonis was a partner at BaltCap and managed a fund dedicated to infrastructure projects in the Baltic states. At the time of his termination, he was leading a company that was involved in constructing a new national soccer stadium for Lithuania. 

The purported embezzlement is the most recent setback for a project that has been in development since 1985, yet has faced difficulties in securing funding. 

In November 2023, BaltCap dismissed Stepukonis following a routine audit that revealed financial mismanagement. The company subsequently reached out to the police after auditors found that funds had been misused. 

In late January 2024, BaltCap filed a lawsuit against Stepukonis, Casino Olympic Group Baltija, and OB Holdings 1, an Estonian firm that owns the Olybet online casino brand. 

€31M Wasted Online 

According to investigators, Stepukonis lost over €31 million to the Olybet.ee site, and they are still working to retrieve these funds. Officials claim that the Estonian firm was taking his wagers without a legitimate Lithuanian gambling license. 

The lawsuit contends that the casinos did not meet their legal obligations to protect against money laundering and "problematic gambling behaviors." 

Stepukonis is believed to be working with authorities. 

He was let go from a detention center last year and now resides under precautionary measures, which involve wearing a tracking device constantly, while he waits for his trial.