The post Billionaire Sues Star Casino for AU$57m Over Exploiting Addiction appeared first on Vegas Slots Online News.
Lawsuit filed
A billionaire is suing Star Sydney casino for AU$57m (US$37.2m) over claims that he was exploited due to his gambling addiction and poor English.
misled him into signing documents that allowed the casino to extend him vast credit lines
Phillip Dong Fang Lee, a property developer, alleges that the casino failed to act on his gambling addiction and also misled him into signing documents that allowed the casino to extend him vast credit lines, furthering his gambling losses.
Lee was at the center of the 2022 inquiry which saw Star have its license suspended and placed under government oversight, but there could now be an additional and significant financial penalty to pay if the lawsuit is successful.
Star treatment
The period during which Lee gambled at Star came to light during a 2022 New South Wales government inquiry. It was found that Lee had wagered over AU$2.25bn (US$1.5bn) at the casino over a period of almost 20 years, racking up staggering losses.
allowed Lee to disguise his gambling expenditure as other activities, such as hotel expenses
During that period, Star also operated a “China UnionPay process,” which was later banned after the hearing. Along with other Chinese patrons, this allowed Lee to disguise his gambling expenditure as other activities, such as hotel expenses, in order to circumvent China’s strict currency controls.
Using this method, Lee moved over AU$100m (US$66m) between 2007 and 2021. At the time, internal company emails also flagged suspicious behavior, as the money transferred was significantly higher than that being gambled, raising further compliance issues concerning money laundering.
Lee was not accused of any illegal behavior, but alleges that he has a pathological gambling addiction that the casino failed to act upon despite its legal obligations, instead fueling his addiction with credit, private gaming areas, and VIP treatment.
Financial troubles
Star Entertainment has been plagued with legal and financial problems in recent years, facing numerous complaints over compliance issues and having major questions leveled at management.
The company entered troubled financial waters after the 2022 inquiry when it faced a series of heavy fines. 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 firing a dealer involved in a drug incident.
Star may receive a lifeline, though, with an impending takeover by Bally’s, which will inject over AU$300m (US$195m) in an effort to keep the beleaguered casino giant afloat.
The post Billionaire Sues Star Casino for AU$57m Over Exploiting Addiction appeared first on Vegas Slots Online News.
