After being mentored by the God of Gamblers Ko Chun, Michael Chan/Little Knife (Andy Lau) has become a top gambler and become renowned in the United States, where he is branded as the Knight of Gamblers. Having achieved success and fortune, Michael currently inhabits in a villa previously owned by his Kuwaiti neighbour, Sam, who has gone broke after Iraq's invasion of Kuwait. Ko's friend, Mr. Ueyama plans to announce Michael's identity and his charity casino project to the Hong Kong press, but Ko's rival, Chan Kam-sing, who is imprisoned after being defeated by Ko, wants to seek revenge, so Chan's godson, Hussein, schemes to destroy Michael's reputation by impersonating him. On the other hand, Sing (Stephen Chow), despite a world champion gambler and branded as the Saint of Gamblers, is living in poverty since he cannot spend any money won by using his supernatural powers as it gives him bad luck, so his uncle, Blackie Tat (Ng Man-tat) suggests him to plead the God of Gamblers to accept him as a disciple. After sending a video to Michael which he dismisses, Sing and Tat march into Michael's mansion where they are kicked out by the latter. They sneak in again at night but is caught and beaten by Michael's bodyguard, Lung Ng (Charles Heung), but they refuse to leave and stays outside all night. The next day, Hussein sends killers to Michael's mansion. While Michael defeats several assassins and successfully escapes with Sing and Tat, Ng was knocked out in an explosion and was abducted by Black Panther.

Michael brings Sing and Tat to his village old home, which is inhabited by his underling, Raven, and Sam. There they call to find out about Ng's whereabouts to no avail and find out that Mr. Ueyama is dead who is the only person that held proof that Michael is the Knight of Gamblers. Sing comes up with an idea to find out where Long Ng is. Using his supernatural powers, Sing sees an unconscious Ng being brought to a bar, so he visits the bar with Tat where they meet the owner, Dream (Sharla Cheung), who looks exactly like Sing's old crush, Yee-mung. Tat becomes smitten with Dream, much to Sing's dismay, and pleads Sing to transfer some of his supernatural powers to him. Tat uses the powers to win stud poker game at Dream's house and gives some of his winnings to Dream, causing himself and Sing (whose power energy is connected to) to lose their supernatural powers. It is then revealed that Hussein found out from a mainland Chinese supernatural power expert, Tai-kwan, how to get rid of Sing's powers and forced Dream, who owes him HK$2 million to manipulate Tat. Hussein then attempts to rape Dream and kidnaps Tat.

Meanwhile, Michael finds out from the newspaper that Hussein's (fraudently using the name Knight of Gamblers) schemes were the latter plans to announce to the press about a fraud casino ship project to scam patrons, Michael plans to expose Hussein and prove himself to be the true Knight of Gamblers. With the help of Sing, Michael manages to