Record €8.5m Fine: Olympic Casino Awaits Court Ruling in Lithuania

The Baltic gaming sector is currently facing a landmark legal challenge. The Administrative Court of Lithuania has confirmed that it will determine by 19 October 2026 whether Olympic Casino Group Baltija must pay a record fine of €8.5 million. This represents the largest financial sanction ever imposed on a gambling operator in the country's history. The parent company, Olympic Entertainment Group (OEG), is vigorously challenging the decision of the Gaming Supervisory Authority, maintaining that its subsidiary should face no punitive action.

At the heart of the dispute are the gambling activities of Šarūnas Stepukonis, a former partner at the investment firm BaltCap. The Lithuanian regulator, LPT, found five alleged breaches of gambling and anti-money laundering rules linked to his activity between December 2016 and June 2021. The authority claims that Olympic Casino failed to perform adequate due diligence to establish the source of the millions Stepukonis was losing. Furthermore, the monitoring of his transactions was deemed ineffective by the supervisory body.

Numbers and facts

The scale of the financial damage is substantial. The regulator estimates that Stepukonis caused €6.4 million in damage during the period under review. Separately, a court has already ordered him this month to pay at least €5.8 million in damages to a BaltCap fund company. The European Public Prosecutor’s Office (EPPO) is also conducting an ongoing investigation into his suspected activities, highlighting the international scope of the scandal.

OEG argues that the regulator has misread the rules in force both at the time of the events and today. The company insists it did not encourage Stepukonis to gamble and has accused the LPT of inconsistency. One specific point of contention involves the move of online gambling activities from Lithuania to Estonia before Lithuania tightened its rules on player incentives in 2021. The regulator alleges this move was intended to allow incentives to continue outside Lithuanian supervision, a claim OEG disputes.

Background

Olympic Entertainment Group is one of the region's largest gambling groups, operating venues across Estonia, Latvia, and Lithuania, as well as online betting services under the OlyBet brand. The scrutiny comes at a time when Lithuania is significantly tightening its grip on the industry. Proposed changes include enhanced supervision of operators by May 2027, followed by the introduction of mandatory player cards in January 2029. These cards will link a customer's identity to their gambling activity across all platforms and physical venues.

„The draft Law on Gambling is intended to establish the use of a player card as a mandatory requirement for all individuals seeking to participate in gambling activities, both at land-based gambling establishments and through remote gambling services.“ - Statement from LPT, Gaming Supervisory Authority of Lithuania

Why it matters for German players

For players in Germany, this case serves as a stark reminder of the risks associated with playing at operators that are not strictly regulated under domestic laws. In Germany, the State Treaty on Gambling (GlüStV 2021) provides a robust framework for player protection and money laundering prevention. The LUGAS system and the OASIS database are designed to prevent exactly the kind of excessive losses seen in the Stepukonis case by enforcing a €1,000 monthly deposit limit and a €1 per spin stake limit on virtual slots.

The Lithuanian case shows that without central oversight, millions can be lost before authorities intervene. German players are urged to stick to the GGL whitelist to ensure they are protected by these safeguards. Playing at MGA or Curacao-licensed sites offers significantly less protection if a dispute arises regarding transaction monitoring or the source of funds.

What it means for GGL-licensed casinos

German GGL-licensed operators can view this case as a validation of their stringent compliance requirements. The duty to verify the source of funds is a core pillar of the German license. A failure of this magnitude would lead to the immediate revocation of a license in Germany. The upcoming introduction of player cards in Lithuania by 2029 aligns with the European trend toward full transparency, a path Germany has already taken with its central monitoring systems. For operators, this case underscores that long-term success depends on robust AML and KYC processes.