Packer gets green light to lift Echo stake

The Independent Liquor and Gaming Authority has given the go-ahead for James Packer to increase his shareholding in the company that operates Sydney's only casino, The Star.

Mr Packer's company Crown Limited already owns a 10 per cent stake in Echo Entertainment, but had applied to the casino regulator to be allowed to buy a bigger share.

The authority will now let Crown buy up to 23 per cent of Echo.

Crown and Echo are engaged in a battle to dominate the high-roller tourism market in Sydney; both companies have lodged rival unsolicited proposals with the State Government.

After Crown lodged a plan to build a six-star resort with a VIP gaming room at the new Barangaroo development on Sydney Harbour, Echo lodged a proposal to spruce up The Star.

Earlier this week, NSW Premier Barry O'Farrell extended the deadline for Crown and Echo to complete their proposals until June 21.

Both plans have been referred to an independent steering committee.

James Packer's Crown can now buy up to 23 per cent of Echo, which holds Sydney's sole casino licence.

Source: ABC News, 10 May 2013