Olympic Casino Hit with €8.4M Fine for Compliance Violations
LISTEN TO THIS ARTICLE:The Lithuania Gaming Control Authority (LPT) has imposed an €8.4 million fine on Olympic Casino Group Baltija (OCGB) for failing to monitor a high-stakes gambler accused of embezzlement.
At the center of the case is Šarūnas Stepukonis, a former partner at BaltCap Fund. Between 2016 and 2021, Stepukonis wagered large sums at Olympic Casino, which operates both online and land-based casinos across Lithuania, Estonia, and Latvia. Authorities suspect that he embezzled approximately €42 million from various companies managed by BaltCap, with a significant portion of the stolen funds lost through gambling.
The allegations surfaced in January, and Stepukonis is now awaiting trial.
Regulator Points to Multiple Failures
The LPT determined that Olympic Casino violated several key regulations regarding player monitoring. The operator failed to verify the source of Stepukonis’ funds to ensure they were not derived from criminal activities. The regulator described the casino’s anti-money laundering measures as “poor-quality and insufficient.”
Additionally, Olympic Casino neglected to report Stepukonis’ suspicious transactions to Lithuania’s Financial Crime Investigation Service (FNTT), which is a legal requirement for licensed gambling operators.
Beyond financial oversight failures, Olympic Casino also failed to intervene despite Stepukonis’ evident irresponsible gambling behavior. The LPT noted that even though he was assigned a personal VIP manager, his excessive gambling went unchecked.
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Casino Offered €1.3M Incentive to Keep Stepukonis Gambling
The regulator further criticized Olympic Casino for actively encouraging Stepukonis to continue gambling by offering him a €1.3 million incentive package.
Since mid-2021, Lithuanian law has prohibited gambling operators from providing financial incentives that could encourage excessive losses. However, before this restriction took effect, Stepukonis shifted his gambling activity to Estonia, where he could still access such offers.
According to the LPT, a Lithuanian gambler attempting to register on Olympic Casino’s Estonia-facing site should have been redirected to the Lithuanian platform. This redirection did not occur in Stepukonis’ case, which enabled him to bypass the regulation.
Violations Lead to Record Fine
The LPT identified five breaches of Lithuania’s laws on gambling and financial crime prevention. Under national law, fines can be set at twice the amount of financial “damage” caused. Since Stepukonis lost €6.4 million gambling at Olympic Casino, this amount was deemed the financial harm, leading to the €8.4 million penalty.
The regulator also noted that Olympic Casino failed to cooperate during the investigation, which was considered an aggravating factor in determining the fine.
In response to the case, the LPT has introduced new measures to prevent similar incidents. Operators are now required to take immediate action when they observe signs of irresponsible gambling and must notify the LPT in real time.
RELATED TOPICS: Regulation
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