Premier Mike Baird has categorically ruled out poker machines at James Packer's planned casino at Barangaroo – cutting a potential lifeline for the billionaire amid fears of a collapse in Chinese gambling business.

Mr Packer has permission to run a VIP-only casino, without poker machines, in a $2 billion Barangaroo apartment, hotel and entertainment complex from November 2019.

Absent of poker machines, Crown Sydney's business model for the so-called "restricted gaming facility" relies on attracting wealthy high rollers, predominantly from China.

But there has been speculation this could be threatened following the arrest of 18 Crown employees in China, including three Australians, last week.