Officials at Sanya city denied reports that the government has for the first time connived in the existence of gambling activities in the resort island.

Sanya Cultural and Sports Council officials told Chinanews.com that the city has never licensed any form of gambling activities. Also, it has ordered to suspend business of the bars operating in the Sanya Bay Mangrove Tree Resort, which is suspected of running gambling activities.

The South China Morning Post reported on Monday that Zhang Baoquan, an art, film and real estate mogul, opened a cashless casino bar which marks Beijing's tactic approval of a gaming concept outside Macau.

Players at Jesters casino bar cannot win cash-only points that they can use to pay for accommodation, luxury goods, jewellery and artwork for sale at the resort, according to the report.

"Our casino bar is the first in the country. The government is monitoring, it's a test," said Zhang in an interview with the paper, "Right now we are not at this stage [legalizing casino gambling], but my personal opinion is, in future, there is a big possibility that they will have."

Related: http://english.caijing.com.cn/2013-02-18/112510845.html