Billionaire Sues Star Sydney Over $57M Gambling Loss

A Chinese-born billionaire property developer has decided to sue The Star Sydney for AUD 57 million ($37.2 million), claiming the casino took advantage of his gambling addiction and language barriers to encourage his massive losses.

He Signed Papers He Couldn’t Read 

Phillip Dong Fang Lee alleges that he was misled into signing documents he did not understand, which gave him more casino credit that fueled his baccarat gameplay, according to court filings reported by The Australian.

Lee originally came to public attention in 2022, during a New South Wales government inquiry into Star Entertainment’s compliance failures. The review revealed that over nearly two decades, Lee had wagered more than AUD 2.25 billion ($1.5 billion) at the casino, with his total losses reaching AUD 57 million ($37 million).

He was also the largest user of a now-banned “China UnionPay process,” which allowed patrons to disguise gambling transactions as hotel expenses to circumvent Chinese currency controls. 

Evidence showed that Lee moved at least AUD 100 million ($66 million) through the system between 2007 and 2021. Even more, internal emails from as early as 2015 raised concerns that his UnionPay spending exceeded his gambling activity, a potential red flag for money laundering. 

However, Lee has not been accused of any wrongdoing. Regulators later found that Star Entertainment prioritized revenue from high-rolling clients over compliance, failing to follow proper anti-money laundering protocols.

The Billionaire Claims “Pathological Addiction” 

In his lawsuit, Lee describes himself as suffering from a “pathological addiction” that made it impossible for him to step away from the tables. The complaint alleges that Star managers were aware of his compulsive gambling but continued to court him with private rooms, credit extensions, and other hospitality perks. 

Because of his limited English, Lee says he believed the documents he signed were merely acknowledgments of chip deliveries, not cheques payable to the casino. 

The Star’s license was deemed unfit in 2022, leading to the company operating under the supervision of a manager appointed by the government ever since.

Any proceeds from the case will go to problem gambling charities in the form of donations, explained the billionaire’s legal team, showing that the lawsuit should be regarded as an effort to hold the casino accountable while supporting those affected by gambling addiction.