Billionaire Files Lawsuit Against Star Sydney for $57 Million Gambling Loss
A billionaire property developer originally from China has initiated legal action against Star Sydney, seeking AUD 57 million (approximately $37.2 million). He alleges that the casino exploited his gambling addiction and language barriers, leading to significant financial losses.
Signing Documents Without Understanding
Phillip Dong Fang Lee claims he was deceived into signing papers he could not comprehend, which provided him with additional casino credit to continue his baccarat gambling. This information was detailed in court documents referenced by The Australian.
Lee first became publicly known in 2022 during a governmental inquiry in New South Wales investigating Star Entertainment’s compliance shortcomings. The review revealed that over nearly 20 years, Lee had wagered more than AUD 2.25 billion (around $1.5 billion) at the casino, with losses amounting to AUD 57 million (about $37 million).
He was also the principal user of a now-prohibited “China UnionPay process,” which enabled customers to disguise gambling expenses as hotel charges, helping them bypass Chinese currency restrictions.
Records showed Lee moved at least AUD 100 million (approximately $66 million) using this method between 2007 and 2021. Internal company emails from as early as 2015 raised suspicions, noting Lee’s UnionPay transactions were greater than his gambling, highlighting possible money laundering concerns.
Nonetheless, Lee has not been implicated in any illegal activities. Investigations found that Star Entertainment prioritized high-roller revenue over adherence to anti-money laundering regulations, neglecting proper protocols.
Claim of Compulsive Gambling Addiction
In his lawsuit, Lee describes having a pathological gambling addiction that rendered him incapable of disengaging from the casino games. The complaint alleges that Star’s management was aware of his addiction but continued to entice him with private gaming areas, credit extensions, and other benefits.
Due to his limited English skills, Lee believed the documents he signed were simply receipts for chip deliveries rather than financial agreements payable to the casino.
In 2022, regulatory authorities deemed Star’s license unfit, resulting in the casino being placed under a government-appointed manager’s oversight.
Lee’s legal representatives emphasized that any damages awarded from the lawsuit will be donated to problem gambling charities, highlighting the case as an effort to hold the casino accountable while aiding those affected by gambling addiction.
