New Sydney casino to attract Asian tourists

Mr Packer is looking to build the new casino/hotel through his Crown group if it wins control of Echo Entertainment - operator of The Star in Pyrmont - after raising his stake from 4.9 per cent to 10 per cent.

The Daily Telegraph last week revealed concept studies for the 350-room harbourfront hotel/casino with panoramic views of the Opera House, Harbour Bridge and Sydney heads, a high-end shopping enclave and big-name restaurants.

Sydney Lord Mayor Clover Moore last night opposed the proposed setting of the hotel/casino, claiming there was "a better location for a large hotel complex near the Southern Cove". Ms Moore was non-committal on the concept of a second Sydney casino. She acknowledged that "Sydney needs another high end hotel, but not in a location that sacrifices the fundamental parkland commitment".

Sources said last night the new casino would have far less tables than The Star, but would cater largely to a VIP clientele.

The Barangaroo complex would have no poker machines, but given that Echo's licence has no restriction on the number of gaming tables, it is believed the proposed hotel/casino would concentrate on table games such as baccarat. Sources have suggested The Star is unlikely to remain unchanged if Mr Packer is able to win control of Echo.

The Pyrmont casino has just undergone an us$ 860 million renovation to help make it more attractive to both tourists and locals but The Daily Telegraph understands Mr Packer has already formed views on how it could be improved further.

If it ultimately wins control of Echo and is allowed to build the Barangaroo venue, Crown is set to mirror the two-pronged approach it has adopted with its two Macau casinos. The Barangaroo casino would be largely targeted at Asian high-rollers, but also attract other locals and tourists to its entertainment venues.