Hong Kong  - A man believed to be a key figure behind an illegal online gambling syndicate that took 10 million Hong Kong dollars (1.2 million US dollars) in bets over the last six months was in police custody Wednesday.

Police said the arrest Tuesday followed a month-long investigation into the illegal gambling operation which used a website registered outside Hong Kong to take the bets.

The police allege the 32-year-old man, whose identity they withheld, eluded detection by collecting bets personally from Hong Kong punters who were either regular customers or referrals.

The syndicate is believed to be one of several illegal gambling operations which have abandoned old methods of bookmaking in favour of online operations.

To avoid detection, gamblers are given passwords to go online and place bets on credit with payments being settled in cash to agents, who then deposit the money in bank accounts or carry it over the border into China where they hand it to other syndicate members.

Last month, 23 people were arrested and betting orders totalling 12.2 million Hong Kong dollars (1.5 million US dollars) seized after police carried out several raids on similar syndicates.

Gambling is a hugely popular activity in the city of 7 million but is illegal except for betting on horse racing and football through the official Jockey Club and a weekly government-run lottery.

It is also illegal to place bets with overseas gambling websites, even if it is legal in the country the websites are based.

A police spokesman said the investigation was continuing with experts from the computer crime bureau checking computers seized from the suspect's home. (dpa)