【007 cassino】Olympic Casino hit with €8.4m fine in BaltCap embezzlement case

Lithuanian authorities determined the casino operator07 cassino which is part of Olympic Entertainment Group, failed to properly monitor suspicious transactions and encouraged problem gambling by a key suspect in a major financial crime investigation.

The Gaming Supervisory Authority (LPT) investigation revealed Olympic Casino did not take sufficient steps to identify the origin of funds lost by Lithuanian businessman Šarūnas Stepukonis between December 2016 and June 2021.

The casino’s monitoring of his transactions was deemed “formal and ineffective” despite obvious red flags that should have triggered suspicious activity reports to authorities.

LPT director Virginijus Daukšys said: “Instead of finding out whether Stepukonis had a gambling problem or informing the supervisory authority, Olympic Casino encouraged him to gamble even more.

“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.”

The fine issued to the operator was calculated based on the €6.4m Stepukonis lost at Olympic Casino in Lithuania, with additional penalties imposed because the company failed to cooperate during the inspection.

Olympic Casino violated AML and gambling laws

Investigators identified five violations of anti-money laundering and gambling laws.

Meanwhile, the broader investigation into asset misappropriation from the BaltCap private equity fund continues to expand.

The European Public Prosecutor’s Office and Financial Crimes Investigation Service have broadened their investigation to include potential violations of misappropriation, illegal business activities, tax evasion, fraudulent accounting, and money laundering.

The case now involves suspected misappropriated assets exceeding €42m.

New allegations have been brought against an Estonian gambling company and its general director, while authorities are seeking to recover approximately €31.6m from the Estonian entity and more than €5.1m from the Lithuanian gambling operation.

Evidence suggests Stepukonis lost over €35m gambling across Lithuanian and Estonian casinos. He remains the primary suspect in the case and continues to live under preventive measures.