Gaming tycoon James Packer could boost the value of his stake in his Crown Resorts empire by up to $1.7 billion should investors back a radical break-up of the casino empire sparked by frustrations over its low market valuation.

A 13 per cent surge in Crown shares on Thursday has handed the company a market capitalisation of $9.3 billion, but sources close to the company say its break-up could add a further $4 billion to its overall value.