Do you think that these charges can stand in court? Did Phillip Dong Fang Lee want to recover his losses through legal remedy?
There is that possibility if fraud is presence in gaining his consent in signing the contract.
As a general rule, if there exist fraud in the signing of a contract, then it is generally voidable if not ratified within a specified number of years. In the example that you provided OP, I do believe that the person can allege fraud in obtaining his consent but the recovery will be limited to the amount he borrowed + damages in his part if proven.
Do you think this is going to be a bad precedent if Phillip Dong Fang Lee wins the case, and casinos should check the behavior of their players if they are exploiting their addiction?
I do think that gambling companies would be more stringent on their regulations if Lee indeed wins the case.
Like what I stated above, if he can prove that fraud did exist upon the signing of the contract, then he could recover the amount he borrowed + damages on his part. Be that as it may, I do think that the gambling company here would win given the amount of evidence needed to prove fraud in this case.