"Many people appear unaware that the NSW Parliament passed legislation in 2013 that specified the siting of the Crown Sydney Hotel Resort's restricted gaming facility on land previously earmarked as public open space on the foreshore of Barangaroo South," the PAC said in a statement. "[The PAC] had no power to direct relocation or to change the associated legislation and, therefore, accepted that the Crown Sydney Hotel Resort would remain in the location mapped."

Mr Packer had to pay $100 million up front in 2014 to the NSW government as part of the deal to obtain Sydney's second casino licence.

The casino operator received NSW government consent in March for the proposed development and approval from the PAC puts an end to a drawn-out planning process that has contributed to an expected 18-month delay in the casino being built.

Crown had originally targeted late 2019 but now admitted early 2021 was a more likely opening date.

Crown chairman Rob Rankin said it would start excavation work shortly.

"For too long Sydney has suffered from a lack of luxury tourism accommodation and Crown Sydney will help turn that around," Mr Rankin said. "We will now move quickly to begin excavation work. We are expecting to complete construction and open in early 2021."

The delay will give incumbent casino operator The Star Entertainment Group a boost, given it will be able to continue its monopoly on the Sydney market for 18 months longer than initially anticipated. The Star hopes to boost its own high-end accommodation offering before Crown Sydney opens and has plans to house a Ritz Carlton hotel as the centrepiece of a new tower connected to its existing Pyrmont complex.

Mr Packer won approval to include the company's cherished gold crown logo at the top of the Wilkinson Eyre designed complex after successfully arguing other corporates, including Westfield and Macquarie in Sydney, had integrated signage on their rooftops.

But Crown was forced into a major concession after agreeing to build a 250-metre-high observation deck that will be open to the public and accessed as part of a guided tour.

The $13 billion break-up of the Crown Resorts empire, which can take up to 18 months, has raised questions about how the casino operator will fund major capital projects, including Barangaroo.

Credit ratings agency Moody's says the spin-off of its international resorts will crunch sources of cash for Crown Sydney, although company executives remain confident it will throw off sufficient free cash flow from its Australian operations to fund its hefty capex program.

