Dr Yew Choy Wong, a Singaporean high-roller, has been ordered to repay over AU$38m in gambling debts to The Star Entertainment QLD Limited after losing a court case. Wong incurred these debts during a trip to the Broadbeach Island casino on the Gold Coast in 2018, where he lost over AU$47.3m playing a baccarat tournament. Despite rebates and allowances reducing the total amount owed to AU$43.2m, Wong failed to honor the debt, leading to legal action from The Star.
The casino had provided Wong with AU$40m in credit via a blank check issued to The Star Sydney in 2017. However, Wong canceled the check and instructed his bank not to honor the agreement after leaving the casino. When The Star attempted to cash the check at a local bank, it bounced, leading to further complications in recovering the outstanding debt. Wong denied giving the casino permission to use the blank check and argued that errors made by baccarat dealers absolved him of his obligation to repay the debt.
Despite acknowledging their own faults in three incidents involving Wong, The Star pursued legal action to recover the money owed. The casino’s attempts to take Wong to court in Singapore were unsuccessful due to legal restrictions, prompting them to seek justice in the Queensland Supreme Court. Justice Melanie Hindman ruled in favor of The Star, stating that Wong had not presented a valid defense against the casino’s claim for repayment of the loaned funds.
The court verdict provided a welcome reprieve for The Star, which has faced significant challenges in recent years. The company’s troubles included a license suspension and a hefty fine for Star Sydney following an inquiry, as well as being deemed unfit to regain its license in a subsequent investigation. Additionally, trading of The Star’s shares was suspended due to the company’s failure to disclose its financial accounts, indicating serious cashflow issues. The new CEO, Steve McCann, sought tax reprieves from local authorities to alleviate the company’s financial struggles.
Prior to the suspension of trading, The Star’s shares had plummeted by 50% over the previous year, reflecting the company’s unstable financial position. Despite these difficulties, the legal victory against Wong provided a glimmer of hope for The Star as it navigated through a turbulent period in its operations.