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.
At the party, Duvalier shows Alex his top fighter, the Beast, and tries to convince Alex to fight in his upcoming Kumite. Alex refuses, since he does not fight for profit, much to Duvalier's ire. To provoke him into fighting, Duvalier has Sun (James Hong), Alex's mentor, teacher, and spiritual "father", killed. Alex turns to Leung (Pat Morita) to whom he was indebted in Bloodsport II: The Next Kumite. Leung directs him to the great shaman, Makato "the Judge", to whom Alex must turn for guidance. (The Judge is Sun's brother who developed his own variation of Sun's Iron Hand technique). The judge teaches him to fully channel the energy in his mind and body in order to rout the Beast in the Kumite.
By this point however, Duvalier has invested everything in the Beast, and no longer wants Alex in his Kumite, for fear he will upset the odds. When he is unable to block Alex's entry, he has his men stationed at the entrances to the tournament arena. Alex gets round this by posing as one of the entourage of another fighter. Both Alex and the Beast make their way through the Kumite, and face each other in the finals. Alex is initially outmatched by the Beast's great physical strength and endurance, and takes a severe beating as a result. Eventually, he remembers his training, and is able to knock out the Beast. He refrains from killing Duvalier, knowing that it won't bring Sun back.
Daniel Bernhardt – Alex Cardo
John Rhys-Davies – Duvalier
J.J. Perry – J.J. Tucker
James Hong – Master Sun
Pat Morita – David Leung
Amber van Lent – Crystal
Uni Park – Sharl
Rajiv Chandrasekhar – Franco
Dava Schatz – Jason
Steven Ito – Yoong
Hee Il Cho – Judge Macado
Gerald Okamura – Voice Of Judge
Nicholas R. Oleson – The Beast
Cricket Keating - Croupier
Saku Richardson - Croupier
Titles around the world
Brazil: O Grande Dragāo Branco 3 (The Great White Dragon 3)
Denmark: Bloodsport III: Kamp Til Døden (Bloodsport III: Fight Till Death)
France: Bloodsport III: L'Ultime Kumite (Bloodsport III: The Ultimate Kumite)
Norway: Bloodsport III: Kumite
Portugal: Bloodsport III: O Combate Final (Bloodsport III: The Final Fight)