In the middle of 2024, national TV stations and online media repeatedly highlighted the stories of those who fell victim to illicit gambling. The cycle began with initial wins, followed by losses, occasional wins, and ultimately, significant losses.
Like a wolf in sheep’s clothing, gambling offers the lure of instant victory, only to plunge players into a vicious cycle. With technological advancements, gambling has evolved and now comes with a new stage name: online gambling, or “judol” as it is commonly known.
Online gambling is the latest iteration of traditional gambling, distinguished by the use of the internet. Regardless of being offline or online, gambling operates on the zero sum game principle. In this setup, the first party acts as the bookie organizing the game, while the second party deposits funds with the bookie, naively expecting to reap significant profits. Meanwhile, the bookie profits from the losses and suffering of the second party.
Dr. Imron Rosyadi, a researcher at the Center for Islamic Economic Studies (PSEI) at the Faculty of Economics and Business (FEB), Universitas Muhammadiyah Surakarta (UMS), stated that online gambling is an engineered money game.
“Both parties expect profits, but that is not possible. There must be one party that loses; this is what is called a zero-sum game. Because the bookie has arranged the game, the gambling profits go to them. The second party is ‘engineered’ to win only in the first, second, and third rounds (deposits of funds) until they are addicted. The next deposits will lead to losses, and so on, until the money runs out and they incur debts,” said the UMS Islamic microeconomics expert.
Looking at the mechanism, gambling players can be said to be victims of fraud because the gambling “machine” is fully controlled by the bookies. However, if we consider the motives of gambling players, they can be positioned as perpetrators. Gambling players engage in gambling consciously, hoping for luck from the outcomes of their speculative activities.
“In several cases of online gambling, most players do it consciously. What is the trigger? They fantasize about getting rich in an instant, without the need for hard work. But as far as I know, there is not a single example of a gambling player who has become rich. If they do, it’s only temporary and they soon fall into poverty, even high-class gamblers in Las Vegas,” continued Imron.
Like a fire spreading through the bushes, the clearly prohibited practice of online gambling has become more widespread in recent years. The annual report from the Indonesian Financial Transaction Reports and Analysis Center (PPATK) reinforces this fact.
According to Databoks, in 2017, there were approximately 250 thousand online gambling transactions in Indonesia, with a total transaction of IDR 2 trillion. In the subsequent years, these transactions continued to rise, eventually reaching values in the hundreds of trillions.
Throughout 2023, PPATK identified around 168 million transactions related to online gambling, with a total transaction of IDR 327 trillion. Among these transactions, 3.29 million accounts were found to be used for gambling activities.
“Some of the profit from online gambling were transferred abroad by the perpetrators using shell companies,” stated the PPATK in its 2023 Annual Report.
Databoks reported that the Coordinating Minister for Political, Legal, and Security Affairs (Menko Polhukam), Hadi Tjahjanto, detected around four million people practicing online gambling in Indonesia as of June 2024. Players’ ages vary, ranging from children to the elderly. Notably, players aged 31-50 (1.64 million players) still dominate online gambling transactions. Hadi revealed that the majority of online gambling players, 80 percent, come from low-income communities.
“Even so, Gen Z is also a potential target, as they tend to use technology and social media extensively. It is possible that this generation is highly exposed to online gambling advertisements, which often promise large profits with small funds,” said Imron.
As reported by CNNIndonesia.com, the Minister of Communication and Information Technology (Menkominfo), Budi Arie Setiadi, stated that many online gambling players come from Generation Z. The main reasons for their participation are the lure of instant profits and the influence of advertisements.
“According to the data, it is mostly young people. Starting from children aged 17 to 20 years,” he said in the CNN Indonesia Connected Dialogue (25/04/2024).
Lust often clouds human judgment, making them ignore the obvious negative impact of gambling. Gambling harms the national economy because money spent on gambling could be put to more productive use. For example, investing in the real sector through buying and selling can help boost the local economy.
However, when money is channeled into gambling, it exits the productive economic cycle and enters a circulation that does not benefit the broader community. This shift can threaten the livelihood of local traders and entrepreneurs.
Not only that, but gambling also operates in the underground economy. This sector includes unregistered and untaxed economic activities, such as illegal trade and transactions without official records. These activities aim to evade government regulation.
When money circulates within gambling activities, it strengthens the underground economy and reduces transparency and accountability in the nation’s economy. This puts national economic stability on thin ice.
“Money games like online gambling never touch the real sector. The turnover of money is large, but it does not create asset growth. This endangers the country’s economy, creating a bubble economy, where the price or value of an asset increases rapidly beyond its intrinsic value,” said the lecturer in the Management Departments of UMS.
When the bubble bursts, many people suffer significant financial losses. From a microeconomic perspective, gambling creates complacency, leading to increased poverty among the families of gamblers.
According to a report by Detik.com, 703 wives filed for divorce at the Malang Regency Religious Court between January and May 2024. They cited economic reasons, specifically because their husbands were too lazy to work and addicted to online gambling.
Economic problems and online gambling addiction not only impact families but also affect social stability in society. When people are entangled in addiction, they often neglect their responsibilities, both as spouses and as members of the community.
Online gambling addiction can also cause severe financial pressures, eventually pushing individuals to commit criminal acts to fulfill their needs or maintain their addiction. This condition can lead to irrational behavior, as the desperation to sustain their habit overrides their sense of reason and morality.
According to Tempo.co, a man in Sambas, West Kalimantan, was driven to desperation by online gambling and killed a savings and loan cooperative employee on Wednesday, June 19, 2024. The victim was seriously injured by the man and underwent treatment at Abdul Aziz Hospital in Singkawang. Unfortunately, despite medical efforts, the victim succumbed to severe stab wounds.
In another incident, a policewoman named Brigadier Police One (Briptu) Fadhilatun Nikmah set fire to her husband, Briptu Rian Dwi Wicaksono, who is also a policeman. This tragic event occurred at the Mojokerto Police Dormitory in East Java on Saturday, June 8, 2024. Reports found that her husband had misused his salary, allocating a significant amount to be put into gambling.
In fact, it is undeniable that many crimes originate from gambling and alcohol abuse. This leads to unrest and triggers tension between community groups. The domino effect of these crimes can damage social order, exacerbate poverty, and increase the burden on law enforcement officials and rehabilitation institutions.
Although the negative impact of online gambling is clear, law enforcement in Indonesia remains weak. Existing regulations are often not strict enough or not implemented effectively.
“Many online gambling sites continue to operate freely, exploiting legal and technological loopholes to avoid being blocked or shut down. Why is this happening? Our regulations and laws are still weak,” Imron said. “It is also evident that many law enforcement officers and members of parliament are involved in gambling, even backing bookies,” he added.
The statement by the UMS PSEI researcher aligns with the Financial Transaction Reports and Analysis Center (PPATK) findings, which reported that 82 members of parliament are suspected of being involved in online gambling as of June 27, 2024. These individuals are active members of the House of Representatives (DPR).
According to a report by Tempo.co, the Head of PPATK, Ivan Yustiavandana, said that online gambling has infiltrated representatives in the legislature at both the central and regional levels. More than 1,000 members of the DPR and Regional Representatives Council (DPRD), along with members of the general secretariat, are suspected of being involved in online gambling transactions.
This problematic situation highlights the urgent need for stricter and more effective law enforcement in dealing with online gambling in Indonesia. The involvement of legislative personnel in gambling practices shows a significant gap in the supervision and law enforcement system.
Imron added, “Sadly, some unscrupulous officials have turned the bookies into a source of revenue, so gambling is actually protected. The emergence of online gambling sites is very diverse, maybe thousands of them. Our country needs to improve its digital security, especially the expertise to permanently block these gambling platforms.”
To address the rising cases of online gambling, Indonesia needs to implement several priority steps:
“Lastly, it is necessary to develop a rehabilitation program for those who practice online gambling. Many of them are victims of addiction. An effective rehabilitation program can help them escape the vortex of addiction and return to a productive life,” he continued.
The gambling economy must not grow and dominate the Indonesian economy, as this can lead to the formation of a bubble economy. Such a situation destabilizes the country’s economy and leads to an economic crisis.
“That’s why in the United States, gambling is limited to certain cities like Las Vegas. If it were allowed in all regions, gambling would destroy the macro, micro, and monetary economy. But in Indonesia, gambling should not be localized, it must be totally banned! Allah also reminds us that gambling (maysir) and alcohol (khamr) have some benefits, but the sin outweighs benefits (QS. Al-Baqarah: 219),” concluded Imron.
Writer: Genis Dwi Gustati
Editor: Al Habiib Josy Asheva
Translator: Farizal Luqman Majid
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