Indonesian Crackdown on Online Gambling Has Cut Activity By Half

Jakarta
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Indonesia held a meeting to establish its intention to crack down on online gambling, continuing to reduce such activity in the country. The Indonesian government intends to strengthen coordination across agencies nationwide to target online gambling and money laundering.

Already, the government claims to have reduced the size of the gambling industry by 56%.

Chairman of the TPPU Committee (anti-money laundering), Prof. Dr. Yusril Ihza Mahendra, laid out the threat to the nation from gambling:

Today, we gather not only to discuss regulations but also to strengthen our shared resolve to protect this nation from the threats that are silently eroding the moral and economic foundations of our society, namely online gambling and money laundering.

Mahendra also talked about how criminal networks siphon money from lower to middle-class working people through the means of online gambling on screens.

The TPPU Committee has committed to a joint effort with law enforcement officials, regulators, and financial sector stakeholders to establish a cross-functional effort aimed at combating the online gambling industry there.

Indonesian Office Claims 80,000 Children Exposed to Gambling

Other Indonesian officials highlighted not only the economic impact of gambling but also the social aspects on Indonesian citizens. Ivan Yustiavandana described the situation:

We’re talking about a real social problem. Many families have lost their savings, their homes have been destroyed, and even children have been exposed. This isn’t just a digital crime issue; it’s a humanitarian issue that demands empathy and collective action.

The most striking statistic provided by the Indonesian office that monitors financial transactions (PPATK) concerned the children. According to the PPATK, approximately 2% of gamblers are under the age of 10. The PPATK claimed that 80,000 children have been exposed.

Gambling Issues in Southeast Asia

The crackdown by Indonesia follows a recent pattern in Southeast Asia (SEA) to target gambling. Many countries have declared war on illegal gambling. Each week brings more headlines touting high-profile busts.

China has beefed up its efforts to curtail gambling by recently going after large-scale scam operations in Myanmar and Cambodia. Five members of a Myanmar criminal gang will be put to death by Chinese authorities.

Thailand recently reversed course on poker, declaring it an illegal activity. Previously, it had welcomed the World Poker Tour for a landmark event.

Vietnam just charged more than 140 people in a bust. That operation reportedly handled more than $100 million in bets. It operated out of a French-owned hotel and used a complex scheme that involved even front-desk employees.

In the same SEA region, the Philippines has gone the opposite way and encouraged the growth of Philippine offshore gambling operators (POGOs). The intent was to foster closer relationships with Chinese business and tourism. But a lack of oversight created legal loopholes. That led to both Chinese and Filipino government officials sharing concerns over gambling’s illegal recruitment methods and operations.

The U.S. Department of State has also issued warnings about certain SEA casinos. There is concern that some casinos are being used as a front for human trafficking in the infamous “Golden Triangle” region. That’s the same part of the world where the scam compounds referenced above have thrived.

IDNPoker Traffic Reduction

On the poker front, Indonesia, the world’s fourth-most populous country, has long been home to one of the more popular online poker sites, IDNPoker. At one point, it was the second-most trafficked online poker site on the planet. Around 2019, IDNPoker was averaging about 5,000 concurrent players.

The crackdown has played its intended role on that particular operator, however. Data now shows that the site reaches its peak with approximately 2,000 players, a reduction in traffic of more than half in just a few years.

That roughly matches the stats shared by the Indonesian government, indicating they may not be far off base with their estimate of having reduced the industry by 56%.

Poker Writer

Jeffrey is an Expert Sports and Poker Writer with poker being his specific scope for the better part of five years. He has worked in various capacities at the biggest poker events in the world, WSOP, EPT, local tournaments and more. He has worked with PokerNews, Poker.Org, 888poker and the WSOP itself through the years. Jeff is also a fervent follower of many sports, professional, collegiate and international, with a particular interest in tennis. He received a Master's in Sports Management from the University of the Incarnate Word (UIW) and a Bachelors in the same field from Clemson University.