An entertainment bar of a resort hotel has been closed and is being investigated by authorities in south China's Sanya City over alleged gambling activities, a local official said Wednesday.

A source with the Sanya Bureau for Culture, Radio & TV, Publication and Sports said a joint investigation team comprising of police, industry and commerce authorities have started an investigation into the Mangrove Tree Resort Hotel.

The source said, "Sanya has never approved any form of gambling activities."

Media reports claimed a cashless casino bar had opened in the hotel.

The entertainment bar of the hotel has been ordered to suspend its operation. The hotel had obtained approval for entertainment business, which includes singing and dancing.

Authorities will deal with any business violating regulations according to law, said the source. Currently, gambling is legal in Macao in China.

Sanya is a popular tourist spot in the southern island province of Hainan.

The province, known for its beaches and tropical forests, aims to be a top international tourist destination. It has mapped out a high-end tourism development plan to bring yacht cruises, golf courses and luxury shopping centers to the island.