If the New South Wales (NSW) government rejects Crown Ltd's bid to build a luxury hotel and casino in Sydney, the James Packer-owned gaming company may set its sights on challenging rival Echo Entertainment Group Ltd in Brisbane, according to The Australian Financial Review.
The state government is expected to rule on Crown's Sydney development proposal in June, and will also consider an application from Echo to extend its monopoly casino licence.
Mr Packer has proposed building a hotel and casino at the Barangaroo precinct on the edge of Sydney's CBD.
If it loses out on the Sydney development plans, which Mr Packer has called a once-in-a-lifetime opportunity, Crown may take on Echo in Brisbane, where Echo has proposed a new $1 billion dollar casino as part of its expansion plans, the AFR added.
The speculation comes as Mr Packer this past week sold his 10 per cent stake in Echo, sending Echo's shares to an all-time closing low of $3.03 on Friday.
Mr Packer said the move was intended to eliminate any speculation that his stake in Echo could influence his Barangaroo plans.
Crown had earlier this month won a bid to more than double his stake in Echo to 23 per cent.