By : Doni Irwandi )*
In the last few decades, technology has experienced very rapid development. Technological innovation has changed various aspects of human life, from the way we work, communicate, to entertainment. However, this progress is also misused for online gambling. Online gambling is something that is of concern because it has a huge detrimental impact on oneself, one’s family, one’s surroundings and even one’s country.
Member of Commission III DPR RI, Heru Widodo, stated that the loss to society caused by online gambling reached IDR 100 trillion. This figure shows how big a financial impact this activity has. Heru asked the Online Gambling Eradication Task Force to maximize law enforcement so that online gambling is eradicated from its roots. According to him, eradicating online gambling is very urgent because it not only harms the community’s economy, but also increases the potential for cybercrime.
The Financial Transaction Reports and Analysis Center (PPATK) revealed that the total turnover of money from online gambling reached IDR 320 trillion from 168 million transactions throughout 2023. This figure shows the large scale of turnover in this industry, which unfortunately does not make a positive contribution to the country’s economy.
Director of the International Collaboration Institute for Development of Economic and Finance (Indef), Imaduddin Abdullah stated that online gambling benefits implementers or controllers from neighboring countries who facilitate this activity. This activity causes Indonesia’s economic growth to tend to slow down or even stagnate because the funds obtained from gambling cannot be used for the APBN budget.
Imaduddin emphasized that money that should be used for domestic development actually flows abroad, benefiting neighboring countries. Apart from that, the involvement of Indonesian people in online gambling activities reduces productivity, disrupts the economy and worsens the stagnant economic situation.
The financial losses experienced by individuals due to online gambling often impact their families. When a family member loses money gambling, the entire family can be affected. Increased financial burdens can cause tension in family relationships, reduce quality of life, and even trigger domestic conflict. In severe cases, families may lose their homes or other possessions to pay off gambling debts.
According to data, the number of people addicted to online gambling in Indonesia increased from 1.3 million in 2019 to 2.5 million in 2020. This figure shows that more and more families are entangled in financial problems due to online gambling.
Online gambling also has a negative impact on productivity in the workplace. In 2018, around 30% of Indonesian employees experienced a decrease in productivity due to online gambling addiction. This figure increased to 40% in 2020. Individuals who are addicted to gambling may spend a lot of time gambling during work hours or experience decreased concentration and motivation. This not only affects the individual’s performance but can also be detrimental to the company by lowering the overall productivity level.
Online gambling is often used as a means for money laundering by criminal groups. In 2019, around $500 million was used to launder money through online gambling in Indonesia. This number increased to $1 billion in 2020. Money laundering through online gambling platforms can undermine the integrity of the financial system and exacerbate existing economic problems. The government needs to expend additional resources to monitor and enforce laws related to these illegal activities, ultimately increasing costs for the state.
Most online gambling platforms operate offshore, depriving countries of potentially significant tax revenue. According to a report by The Guardian, the UK loses around £300 million a year in uncollected tax revenue from the online gambling industry. This reduces the resources available for public services such as education, health and infrastructure.
Online gambling also carries risks for teenagers and college students who are more susceptible to addiction. According to a study by the Gambling Commission in the UK, around 14% of teenagers aged 11-16 have gambled online. Gambling addiction at a young age can cause long-term financial problems and hinder the economic development of future generations.
Additionally, online gambling can cause financial instability among individuals and families. Individuals who gamble excessively often face financial difficulties that lead to decreased purchasing power and a reduction in their economic contribution. This could lead to wider economic fluctuations, especially in already vulnerable communities.
Online gambling carries a variety of significant economic dangers. The financial impact on individuals and families, reduced productivity, reduced local income, social and health costs, and money laundering risks are some of the key issues that need to be addressed. To reduce this negative impact, a comprehensive approach is needed from all stakeholders, including strict regulations, public education and support services for those affected.
Apart from that, the role of religion in educating and socializing the dangers of online gambling is very important. Campuses and educational institutions must also play an active role in preaching the dangers of online gambling practices. With the right actions, the negative impacts of online gambling can be minimized, helping to protect the economy and overall societal well-being.
)* The author is an observer of social economics