Olympic Casino Group fined €8.4 Million for Role in €42 Million BaltCap Scandal

• Gambling
• 11 March 2025

Baltic casino operator Olympic Casino Group Baltija has been penalized €8.4 million (US$9.2 million) for permitting a rogue BaltCap private equity manager to wager millions without any oversight or controls. 

Lithuanian national Šarūnas Stepukonis was detained in February 2024. He is believed to have misappropriated €42 million (US$46 million) from BaltCap, the largest private equity firm in the region. Prosecutors estimated that he lost approximately €38 million (US$41 million) gambling 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 origin of the funds, as per a decision made by the nation’s gaming authority, LPT. The casino also failed to send suspicious activity reports (SARs) to financial authorities, in spite of significant red flags, 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 Misappropriated 

Stepukonis held a partnership at BaltCap and managed a fund dedicated to infrastructure initiatives in the Baltic region. When he was dismissed, he was leading a company that was working on the construction of a new national soccer stadium in Lithuania. 

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

In November 2023, Stepukonis was dismissed by BaltCap 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 and the Casino Olympic Group Baltija, along with OB Holdings 1, an Estonian firm that owns the Olybet online casino brand. 

€31M Lost on the Internet 

Investigators report that Stepukonis lost over €31 million to the Olybet.ee site and are still working to recover these funds. Officials claim the Estonian firm was taking his wagers without possessing a legitimate Lithuanian gambling license. 

The legal action claims that the casinos did not fulfill their obligations to protect against money laundering and “problematic gambling behaviors.” 

Stepukonis is believed to be collaborating with officials. 

He was let go from a detention center last year and now lives under preventive restrictions, which involve wearing a tracking device at all times while he waits for his trial.