James Packer may have found an ally in his effort to exert control over rival gaming group Echo Entertainment, with Asian gaming giant Genting Group increasing its stake in the owner of Sydney’s only Casino.

Genting, a major Malaysian corporation involved in gaming and hospitality, property and palm oil plantations, last week took a 4.9 per cent stake in Echo, owner of The Star in Sydney.

A further 2.8 per cent stake in Echo was acquired when Genting Hong Kong, a subsidiary cruise and resort operator, confirmed on Tuesday it had paid $82.6 million for 19.26 million Echo shares.

Another 13.8 million Echo shares, a 2.0 per cent stake, were sold in one $60.1 million transaction on Tuesday morning, fuelling speculation Genting had again increased its stake in Echo, potentially to a total of 9.7 per cent.

Mr Packer’s Crown holds a 10 per cent stake in Echo, and has applied to gaming authorities to take a larger interest, as it seeks a presence in Sydney.

It has been reported that Mr Packer met Genting Group’s chairman and chief executive KT Lim last week.

City Index chief analyst Peter Esho said Genting and Crown may be working together with a view to taking control of Echo at some stage.

“There may have been an agreement between Genting’s KT Lim and Crown’s James Packer that each group would hold a 10 per cent blocking interest for now, and wait to see what develops over the next few years,” he said.

Such a move would fend off any other takeover and keep the Echo board in line with Crown’s intentions, Mr Esho said.

As well as The Star in Sydney, Echo owns the Treasury casino in Brisbane, and the Jupiters casinos on the Gold Coast and in Townsville.

Crown owns the Crown casino in Melbourne and the Burswood casino in Perth, plus an interest in several Macau casinos.