Legislator Yeung Yiu-chung, of the Democratic Alliance for the Betterment of Hong Kong (DAB), yesterday urged the Government to halt the discussions.

'I don't think it is a good thing that Hong Kong always compares itself to Singapore,' he said. 'I don't think it is meaningful. We have a different situation. The Government has told me that they are neutral on this issue, but instead of legalising soccer gambling they should be tightening the law.'

The debate on the merits of liberalising Hong Kong's strict gambling laws is becoming increasingly polarised. The Democratic Party and the DAB have both accused the Government of trying to legalise soccer gambling by stealth after Donald Tsang Yam-kuen's Budget in March.

Mr Tsang, presenting his final Budget as financial secretary before taking up his new role as Chief Secretary for Administration, said at the time: 'Rather than aiming to achieve the impossible, we should examine the case for providing a legal avenue for soccer betting.'

The Government subsequently dismissed talk of a hidden agenda, but news that it has been talking to the Singapore authorities will only add fuel to the fire.

Legislator Andrew Cheng Kar-foo, of the Democratic Party, said yesterday: 'I had my suspicions that they were consulting with the Singapore authorities. It's very interesting. What we find repeatedly is that legalising gambling draws more people into the activity. I am not convinced that legalising soccer gambling will lead to a decrease in illegal betting.'

The Home Affairs Bureau, however, dismissed fears that legalising soccer betting would necessarily lead to an increase in illegal activity.

Principal Assistant Secretary Francis Lo Chi-wai admitted 'informal' contacts had taken place with the Singapore authorities. 'We understand that legal betting on soccer in Singapore is on their local league only, therefore it is not that relevant to the Hong Kong situation,' he said. 'If, at the end of the day, Hong Kong will have legal betting outlets for soccer, I don't think [betting on] Hong Kong local soccer will be allowed.'

But Singapore experts believe there is mounting evidence that illegal betting takes the lead from legal betting. Much of it is online.

William Hill and Ladbroke's, two of the world's biggest bookies, have revealed that in recent years they have seen a boom in Singapore's soccer betting.

Andy Clifton, of Ladbroke's, said: 'Since English Premier League football is so popular in Singapore we are seeing an increasing number of Singaporeans coming to us. From perhaps fewer than 100 Singapore clients a couple of years ago, the number today is approaching 8,000.'

Ladbroke's already lays claim to more than 10,000 registered clients in Hong Kong, but refused to comment on whether legalising soccer gambling could further boost demand.

William Hill points to 'thousands' of clients with numbers rising. They have been attracted by the generous odds and simplicity of betting online.

Mr Yeung, of the DAB, said: 'The Government must understand that legalising it doesn't stop illegal gambling. Illegal and online bookies will always be able to offer better odds.'

The Internet is one of the growth areas of global gambling and fuelled the Jockey Club's demand for an updated ordinance to crack down on it.

Detective Superintendent Heng Hiang Hua, of Singapore's Gambling Suppression Branch, recognises that illegal online gambling is a mounting problem.

'As Singapore punters become more IT savvy, they will find it more convenient to bet from the privacy of their homes,' he said.