James Packer will be called to give evidence at an inquiry into the proposed sale of his $1.76 billion stake in Crown Resorts to a Hong Kong based casino operator.

Key points: Mr Packer is prevented from doing business with Melco owner Lawrence Ho's father, Stanley Ho

Mr Packer is prevented from doing business with Melco owner Lawrence Ho's father, Stanley Ho Stanley has denied allegations he is connected with criminal syndicates and alleged human trafficking

Stanley has denied allegations he is connected with criminal syndicates and alleged human trafficking The inquiry will also probe Crown's anti-money laundering operations

The NSW Independent Liquor and Gaming Authority (ILGA) is investigating after it was announced in May that just under 20 per cent of Mr Packer's CPH Crown Holdings would be sold to Lawrence Ho's Melco Resorts and Entertainment Limited.

It represents almost half of Mr Packer's stake in the casino giant.

The move has raised questions due to ownership restrictions on Crown's casino project in Barangaroo.

Crown is prevented from starting any new business activities with 55 companies and five individuals under an agreement with the ILGA which includes Lawrence Ho's father, Stanley, and any of his associates.

The probe will examine whether the proposed sale constitutes a breach of the restricted gaming licence or any other regulatory agreements.

During opening statements, the inquiry was told Mr Packer would be called to give evidence at a later date and the inquiry would continue in late February.

"One of the matters is the extent to which Mr Stanley Ho, Mr Lawrence Ho's father, or persons or entities associated with him, have corporate or business connections with the Melco entities," Counsel Assisting Adam Bell SC said.

Melco chief executive Lawrence Ho, his father Stanley Ho and James Packer in Macau in 2006. ( AAP: Vincent Yu )

Mr Bell said Stanley Ho had consistently denied allegations he is connected with organised crime and that he's never been convicted of a criminal offence.

"Mr Lawrence Ho has always stressed the independence of Melco Resorts from Mr Stanley Ho," he said.

"He has also pointed out that Melco Resorts operates casinos in Macau in competition with casinos associated with Mr Stanley Ho."

The inquiry will also consider media reports on Crown from July last year raising allegations of money laundering, breaches of gambling laws and links to human trafficking.

The company denied those allegations.

The ILGA investigation will also consider Crown's anti-money laundering measures, how it vets junkets — or large groups of high rollers — brought into its venues, and the general vulnerability of casinos to money laundering.

The inquiry heard previous investigations found no evidence that either Lawrence Ho or Melco are not of good repute, having regard to his character, honesty and integrity, or that either of them had any "undesirable or unsatisfactory financial sources".

Mr Packer this month returned to Sydney to meet with Crown executives and reaffirmed his commitment to the Barangaroo project.

It is scheduled to begin operating in 2021.