The Gaming Supervisory Authority found that Olympic Casino Group Baltija (OCGB) failed to properly assess the origin of Šarūnas Stepukonis’ gambling funds, with its financial transaction monitoring deemed formal and ineffective. As a result, the company was fined nearly €8.4 million following an inspection of its operations in Lithuania.
The investigation reviewed OCGB’s handling of Stepukonis’ transactions on its gaming platform between December 2016 and June 2021. Lithuanian law requires gaming operators to ensure customer funds are not derived from criminal activity and to verify their origins. However, the authority determined that OCGB’s measures were inadequate, and its monitoring of Stepukonis’ gambling activity lacked proper oversight.
Gaming operators are required to report suspicious transactions to the FNTT, yet OCGB failed to flag Stepukonis’ transactions despite clear warning signs. The inspection also revealed that his gambling behavior was reckless, something the company should have identified, particularly as he was assigned a personal manager who had full visibility of his transactions.
Virginijus Daukšys, the LPT Director, commented:
Instead of finding out whether Š. 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 1.3 million euros was allocated for this. This “bonus” could only be spent on gambling. Other incentives were also allocated.
In Lithuania, a ban on gambling incentives that could lead to player losses has been in place since mid-2021. However, just before this regulation took effect, Šarūnas Stepukonis’ virtual gambling activity was transferred from Lithuania to Estonia, where such incentives were still permitted. This move not only allowed continued use of gambling incentives but also bypassed oversight by the Lithuanian Gaming Supervisory Authority (LPT).
While Lithuanian players attempting to access the Estonian Olympic Casino website were automatically redirected to the Lithuanian platform, Stepukonis’ account was exempt from this redirection. These circumstances are now part of an ongoing pre-trial investigation.
The inspection uncovered five violations of Lithuania’s Law on the Prevention of Money Laundering and Financing of Terrorism, as well as the Law on Gambling. Authorities determined that Stepukonis lost €6.4 million at Olympic Casino in Lithuania, and under the law, fines can be up to twice the amount of damages. The final penalty was increased due to OCGB’s lack of cooperation during the investigation, bringing the total fine to €8.4 million.
Following these findings, LPT has proposed new legal measures to prevent similar cases. The most significant change now requires gambling companies to take action when identifying irresponsible gambling behavior and report such cases to the regulatory authority.
Virginijus Daukšys, the LPT Director, added:
Until now, there was no such obligation. Therefore, the LPT did not have information that would allow it to take preventive actions in advance.
A new Gambling Law set to take effect in November aims to limit gambling accessibility, reduce its appeal, and mitigate potential health risks.
In response, the Gaming Supervisory Authority (LPT) has revised its procedures, implementing changes to enable more frequent scheduled inspections of gambling operators. Additionally, the Ministry of Finance audited LPT’s operations and found no major deficiencies. Following the audit’s recommendations, LPT has allocated additional personnel to strengthen its money laundering prevention efforts.
Follow our Telegram channel
