Australia casino watchdog launches review of Crown's Sydney gaming project

SYDNEY, Jan 8 (Reuters) - An Australian casino regulator has formally launched a mandatory investigation into Crown Resorts Ltd's CWN.AX fitness to operate a casino after it won approval to develop VIP gaming at a Sydney luxury resort from November 2019.

In a notice published in newspapers on Wednesday, the Independent Liquor and Gaming Authority of New South Wales (NSW) called for public submissions regarding the approval of a restricted gaming licence to Crown, controlled by tycoon James Packer, at the Barangaroo development.

"It is expected that the investigation will be completed in March 2014," said a spokesman for the authority. That would be a shorter timeframe for approval than the more usual period of about a year, according to local media.

Crown, which won the approval from the NSW government last year, has entered into a binding agreement with the government to develop a six-star luxury hotel resort including a VIP gaming facility at Barangaroo. News Search ID:nWNBS007WL

That dealt a blow to rival casino operator Echo Entertainment Group , which holds an exclusive licence for NSW's only existing casino, also in Sydney, until 2019.

Crown shares closed up 2.1 percent at A$17.20 on Wednesday, while the market index was nearly flat.

(Reporting by Maggie Lu Yueyang; Editing by Kenneth Maxwell)

((maggie.luyueyang@thomsonreuters.com)(+61 2 93731819)(Reuters Messaging: maggie.luyueyang.thomsonreuters.com@reuters.net))

Keywords: AUSTRALIA CROWN/CASINO