James Packer has been involved in an altercation with a security guard after being refused entry to his own Melbourne casino.

The security guard, Dr Iskandar Chaban, 60, said he did not recognise Mr Packer as the billionaire approached the main entrance of Crown Towers on New Year's Day along with a Crown Casino executive.

Mr Chaban told the Herald Sun Mr Packer "screamed at him with the most terrible language" before pushing him out of the way.

"I was just doing my job," Dr Chaban said. "I had no idea who the men were at first. How they treated me was inhuman.

"I pressed my alarm as I didn’t know who these crazy men were, it was terrifying."

At least 10 security guards then swarmed the scene, Mr Chaban said, before he was thrown out of the casino.

Mr Chaban, a father-of-three, said he then collapsed on the train home, the incident having aggravated a back problem.

He was hospitalised for seven hours with back pain and shock.

Mr Chaban was then told he had been suspended, pending an investigation.

A spokesman for Crown Melbourne said yesterday "a minor incident" had occurred between Mr Packer and the security guard, and Mr Chaban will be allowed to return to work when he has recovered.

Mr Chaban said he has contacted Maurice Blackburn Lawyers and may pursue the matter further.

"It’s been the worst week of my life," he said.

The incident happened just hours after Mr Packer attended an exclusive New Year's Eve concert at Crown where his girlfriend Mariah Carey performed to a 1500-strong VIP crowd.

It is not the first time Mr Packer has been involved in a physical altercation.