Property Tycoon Phillip Dong Fang Lee Sues Star Casino Over A$57M Gambling Losses

A billionaire property developer who once ranked among The Star Sydney’s most prolific gamblers is now taking the casino operator to court, seeking to recover A$57 million in losses.

Chinese-born magnate Phillip Dong Fang Lee alleges that Star executives took advantage of both his compulsive gambling problem and his inability to read English while he burned through tens of millions of dollars at baccarat tables. Court documents, state that Lee was misled into signing paperwork he could not understand, which effectively extended him credit to continue betting.

Wagered More Than A$2.25 Billion

Lee’s gambling activity first came under public scrutiny in 2022 during a government-commissioned probe into compliance failures by Star Entertainment. That inquiry revealed that across nearly 20 years, Lee had purchased billions of dollars in chips from the Sydney casino. While his net losses came to A$57 million (US$37 million), the review found he had staked more than A$2.25 billion (US$1.5 billion) in baccarat wagers.

The investigation also determined Lee was the single largest user of Star’s banned “China UnionPay process.” That system enabled patrons to disguise gambling expenditures as hotel charges, thereby circumventing Chinese capital controls. Between 2007 and 2021, Lee funneled at least A$100 million (US$66 million) through the scheme, according to evidence presented at the inquiry.

Internal emails disclosed during the review showed that as early as 2015, casino employees had raised alarms that Lee’s UnionPay transactions far exceeded his actual gaming spend — a potential indicator of money laundering. However, Lee himself has not been accused of engaging in such activity. Regulators ultimately concluded that Star Entertainment failed to enforce anti-money laundering requirements and prioritized revenue from VIP players over regulatory compliance.

“Pathological Addiction”

In his lawsuit, Lee contends that he suffers from a “pathological addiction” which left him unable to step away from gambling. The filing states that Star management was fully aware of his compulsive behavior but nevertheless continued to entice him with credit lines, exclusive gaming rooms, and premium hospitality perks.

Because of his limited English, Lee further claims that he misunderstood the documents placed before him, believing they were simple confirmations for chip deliveries rather than cheques payable to the casino. His legal team argues that the casino knowingly exploited both his gambling disorder and his language barrier.

The company was declared unfit to hold a casino license in 2022 following damning revelations about money laundering, links to junket operators, and widespread governance failures. Though its license remains suspended, the casino continues to operate under the oversight of a government-appointed special manager.

Representatives for Lee emphasized that any proceeds from the litigation would be directed to charities supporting problem gambling programs. 

By fLEXI tEAM