China feared that casinos in Macau owned by the billionaire gambling magnate and Republican party funder Sheldon Adelson were used by US intelligence agents to entrap and blackmail Chinese officials, according to a “highly confidential” report for the gambling industry.

The report, by a private investigator in 2010, said that Beijing believed US-owned establishments in the former Portuguese colony were working in league with the CIA.

“Many of the (Chinese) officials we contacted were of the view that US intelligence agencies are very active in Macao and that they have penetrated and utilised the US casinos to support their operations,” it said.

The investigation was commissioned by the Macau branch of Adelson’s company, Sands China, amid concern that the enclave’s government was increasingly hostile to the gambling industry in general and Sands in particular.

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