Olympic Casino Group Baltija, a subsidiary of Olympic Entertainment Group (OEG), has had its penalty for anti-money laundering (AML) failings in Lithuania reduced from €8.4 million to €1.2 million by the Regional Administrative Court of Lithuania.
Background to the Fine
The Lithuanian Gambling Supervisory Authority (LPT) originally imposed the €8.4 million fine in September, citing failures in financial compliance related to the gambling activity of Šarūnas Stepukonis, a former associate of the BaltCap investment fund. Stepukonis is under separate investigation for allegedly embezzling around €42 million from BaltCap fund companies. The regulator claimed Olympic failed to properly verify the source of Stepukonis's gambling funds and did not conduct adequate AML checks on his transactions.
Court's Rationale for Reducing the Penalty
Olympic challenged the LPT's decision, arguing that the regulator misinterpreted both past and current legislation and that the penalty should reflect the company's obligations but also consider Stepukonis's actions. The court found procedural errors in how the LPT calculated the fine and noted that mitigating factors had been overlooked. These included Olympic's implementation of an anti-money laundering policy and a risk assessment in 2021, as well as its cooperation with the authority during the investigation. As a result, the penalty was reduced to €1.2 million, though the LPT has already stated it will appeal the decision.
Implications for Industry Stakeholders
This case is significant for operators, affiliates, and suppliers as it highlights the evolving regulatory landscape in Lithuania and the importance of robust AML controls. The dispute has raised concerns about the balance of power between the courts and the gambling regulator, especially as Lithuania prepares to introduce a new compliance framework in 2027. The upcoming changes will require operators to strengthen customer identification, transaction monitoring, and record-keeping. A second phase in 2029 will mandate player cards and eliminate cash transactions in gambling venues, increasing transparency and oversight across both online and land-based gambling sectors.
Key takeaways
- Olympic Casino Group Baltija's AML fine in Lithuania was reduced from €8.4m to €1.2m.
- The court cited procedural errors and overlooked mitigating factors in the regulator's original decision.
- The case has become a focal point as Lithuania prepares for stricter gambling compliance measures in 2027 and 2029.
- The regulator plans to appeal the court's decision, keeping the legal process ongoing.