A MAN who twice pointed a gun at pursuing police after an armed hold-up at a Melbourne gaming venue remains on the run.
Two men wearing disguises robbed the gaming venue at the Dorset Gardens Hotel in Croydon about 9.45am (AEDT) on Tuesday.
Police arrived as the robbers were leaving the venue in a car, sparking a pursuit in which one of the men pointed a gun at officers, Superintendent Graeme Arthur said.
The bandits left their car and ran, with one again pointing the gun at police as they chased him on foot though no shots were fired.
"When police have pursued them they've pointed a firearm at them whilst they've been involved in the car chase and secondly when they've pursued them on foot," Supt Arthur told reporters.
One alleged offender was caught but the man seen with a gun remains on the run.
Supt Arthur said he was dangerous and needed to be caught.
The man scaled a number of fences in the Croydon area, and one resident had challenged him with a baseball bat, Supt Arthur said.
Police are conducting a house-to-house search around Currong Grove/Mt Dandenong Road and believe the man may still be in the area.
Some residents have been evacuated from the area.
Supt Arthur said police were worried someone may return home from work or holidays to find the man on their property.
The man is about 165cm tall and was wearing a white hoodie top and black parachute tracksuit pants.
Anyone who sees him is urged to contact police.
A 20-year-old man is in custody.
Police say they found the gun on Mt Dandenong Road about 3.15pm.
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