TAIPEI - EIGHT Taiwanese have been arrested for alleged illegal gambling on the results of next week's presidential election, police said on Saturday.

The suspects, five men and three women, were apprehended during police raids in southern Taiwan on Friday for allegedly bagging profits of some 50 million Taiwan dollars (S$2.25 million) in six months, the Criminal Investigation Bureau said.

The police also confiscated 26 fax machines, seven calculators, two telephone sets and a box of betting papers during the raids, the bureau said in a statement.

Apart from lotteries operated by government-authorised banks, gambling is banned in Taiwan but it is rife on the island with people going to private casinos, spending millions on pigeon racing and laying out on bets linked to lotteries and horse racing in Hong Kong.

Local media said betting is expected to reach its peak two or three days ahead of the March 22 polls, with gangs often refusing to accept wagers of less than 10,000 Taiwan dollars.

The United Daily News said illegal betting operators had predicted victory for the Kuomintang (KMT) candidate Ma Ying-jeou by some 500,000 votes over his rival Frank Hsieh of the ruling Democratic Progressive Party.

However, the gap has since narrowed to 200,000 votes after four KMT lawmakers became involved in violent clashes outside Mr Hsieh's campaign headquarters in a row over the election, the paper cited gambling sources as saying.

It also quoted a source as saying that many gamblers believed the incident had dealt a blow to the KMT and some are even betting on a tie. -- AFP