Casino kingpin James Packer and Crown Resorts have launched legal action against the NSW government to stop their new casino's hotel views being obstructed.

The $2 billion hotel and casino is currently under construction in Sydney's inner-city suburb of Barangaroo as a part of rejuvenation to the harbour's foreshore.

As part of the plans, Crown had budgeted $800 a night hotel rooms with a view of the Sydney Harbour Bridge and Opera House.

But expansions proposed by the state government would obscure those views and ward away customers, causing Mr Packer to launch legal action on Thursday morning.

A legal battle would result in delays to the Barangaroo and Metro Line project, which is due for completion in 2024.

The resort in Sydney will be the third Crown operated complex in Australia after Perth and Melbourne opened in 1985 and 1994 respectively.

However, Mr Packer's international ventures haven't gone as well, leading to the company's profits falling by 70 per cent in 2017-18.

Selling their Macau casino, combined with a $300,000 fine for pokie tampering and having to free 19 employees detained in China over gambling charges led to the business posting a $558.9million profit.

The business is expecting that the Sydney project will normalise their profits, with the casino on schedule to be completed within the next three years.

But their timeline could be delayed, as a lawsuit against the Barangaroo Delivery Authority (BDA) in the Supreme Court reports the Daily Telegraph.

A spokesperson from the Alliance for Gambling Reform told Daily Mail Australia that the lawsuit doesn't come as a great surprise.

'Sydney is already the gambling capital of the world and the industry has long thrown its weight around with politicians so litigation over Barangaroo doesn't come as a great surprise,' he said.

The NSW Supreme Court action was revealed in an announcement to the Australian Securities Exchange Thursday morning.

'The Proceedings seek injunctive relief and declarations against the BDA that in substance require the BDA to comply with a number of its contractual obligations under the Crown Development Act,' the statement read.

'... sight lines from the Harbour Bridge to the Sydney Opera House are retained by the Crown Sydney Hotel Resort.'

The resort is due to be finished in 2021, nine years after it was first proposed.

The target time frame for finishing Barangaroo Central and its Metro station is 2024.