An American Army Major goes AWOL to Hong Kong for an outlawed martial arts contest called the Kumite.
''Bloodsport III'' reintroduces the character Alex Cardo (Daniel Bernhardt) from ''Bloodsport II''. As Alex travels to India and gambles in a casino, masked men steal money and a package from the casino, but not before Alex beats up several of the men. After the robbery, the casino owner convinces Alex to retrieve the package (a bag of diamonds) from the robbers, since they belong to a mob boss named Duvalier (John Rhys-Davies). Alex does so, and Duvalier invites him to a dinner party he's hosting as thanks.