Wealthy Individual Files AU$57m Lawsuit Against Casino, Accusing Them of Leveraging Gambling Addiction
Billionaire Suing Star Sydney Casino for Alleged Exploitation
Star Sydney casino, one of Australia's largest casino resorts, is facing a significant legal challenge. Phillip Dong Fang Lee, a billionaire property developer, has filed a lawsuit against the casino for AU$57 million (US$37.2 million).
The lawsuit alleges that Star Sydney casino misled Lee into signing documents that allowed for vast credit lines, despite his gambling addiction and limited English skills. The period of Lee's gambling at Star came to light during a 2022 New South Wales government inquiry.
Lee wagered over AU$2.25 billion (US$1.5 billion) at the casino over nearly 20 years. Internal company emails flagged suspicious behavior, as the money transferred was significantly higher than that being gambled, raising further compliance issues concerning money laundering.
The inquiry found that Lee had staggering losses at the casino. His gambling expenditure was allegedly disguised as other activities, such as hotel expenses. This practice is particularly pertinent as Star Sydney casino operated a "China UnionPay process" from 2007 to 2021, which was later banned. This process allowed Lee and other Chinese patrons to disguise gambling expenditure as other activities, such as hotel expenses.
Star Sydney casino was suspended and placed under government oversight due to the 2022 inquiry. The company faced a series of heavy fines after the inquiry. The casino's legal and financial problems are not new; Star Entertainment has been plagued with such issues in recent years.
However, the casino may receive a lifeline with an impending takeover by Bally's. This deal will inject over AU$300 million (US$195 million) to keep the beleaguered casino giant afloat. If the lawsuit is successful, Star Sydney casino could face an additional financial penalty.
Lee is not accused of any illegal behavior, but alleges that the casino failed to act upon his gambling addiction despite its legal obligations. Other controversies to have surrounded the casino have ranged from the bizarre to the inept, including an ATM malfunction that handed out millions of dollars in free cash and a firing of a dealer involved in a drug incident.
This news marks another challenging chapter for Star Sydney casino, and the outcome of the lawsuit will be closely watched by the gambling industry and the public alike.
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