The Dangers of Online Gambling Have a Bad Impact on Psychology and the National Economy

By Sulistya Ambarwati )*

Online gambling has now become a disturbing phenomenon in Indonesia. The impact is not only detrimental to individuals but also threatens the national economy. Although it seems like a harmless activity, online gambling carries very serious psychological and economic impacts.

Online gambling addiction is now becoming an increasingly common problem. When someone is trapped in a cycle of addiction, they will often neglect family and social responsibilities. Research shows that this addiction can cause severe financial stress, which in turn can drive individuals to commit criminal acts to meet their needs or maintain the addiction. This condition causes online gamblers to act beyond reason, which is detrimental to themselves and others.

Online gambling addiction also has negative effects on mental health. Gamblers often experience stress, anxiety, and depression due to financial losses and feelings of embarrassment. Gamblers’ families often fall victim to this destructive behavior, including domestic violence and financial instability.

From an economic perspective, online gambling creates significant and detrimental impacts. The turnover of money in online gambling is very large, but it does not create real asset growth. Money used for gambling should be allocated for productive purposes, such as buying and selling in the real sector which helps the local economy. When money flows into online gambling, it leaves the productive economic cycle and enters circulation that does not provide added value to society at large. This prevents local traders and entrepreneurs from surviving and developing.

Furthermore, online gambling also strengthens an underground economy that is not registered and not taxed by the government. This activity includes illegal trading, transactions without official records, and other activities whose aim is to avoid regulations. This underground economy reduces transparency and accountability in the country’s economy, posing a major risk to national economic stability. Researcher at the Center for Islamic Economic Studies (PSEI) at Muhammadiyah University of Surakarta (UMS), Imron Rosyadi, said that the circulation of money in online gambling never touches the real sector. This large circulation of money does not create asset growth and can cause a bubble economy. When this economic bubble bursts, many people will experience major financial losses.

Online gambling also creates feelings of laziness at work, thereby creating new poverty for gambling families. The Financial Transaction Reports and Analysis Center (PPATK) noted that as many as 3.2 million Indonesians are online gambling players. Of this number, around 80 thousand people or two percent are estimated to be under 30 years old. The majority of online gambling players bet under IDR 100 thousand, while the upper middle class can bet up to IDR 40 billion.

The rise of online gambling has also led to an increase in crime. The tendency for online gamblers to look for various ways to get money instantly, including through theft, robbery, and selling drugs. Work productivity certainly decreases because the individual’s concentration is divided due to gambling addiction. The form of online gambling applications that are similar to online games makes many people, including students, trapped in gambling games.

Member of Commission E DPRD DKI Jakarta, Basri Baco, emphasized that online gambling has caused a decrease in family income. Money that should be invested or saved is instead spent on gambling. The rise of online gambling has also increased the practice of online loans (pinjol), especially illegal ones. When debts accumulate, gamblers will fall into poverty, which ultimately increases the poverty rate in society.

To eradicate online gambling, President Joko Widodo has formed an Online Gambling Eradication Task Force, led by the Coordinating Minister for Political, Legal and Security Affairs (Polhukam) Hadi Tjahjono. The President has firmly stated that there is a ban on online gambling to the public and invites the public not to get involved in gambling, both online and offline.

The eradication of online gambling is regulated through Presidential Decree (Keppres) Number 21 of 2024. The Online Gambling Task Force is tasked with optimizing the prevention and enforcement of gambling laws effectively and efficiently. Large online gambling transactions can have a negative impact on the country’s economy. Indonesia is considered an online gambling emergency, with the top position of online gambling users in the world.

Members of Commission XI DPR RI and members of the DKI Jakarta DPRD said that the majority of online gambling players come from low-income communities. Sadly, money that could have been saved or spent on Micro, Small and Medium Enterprises (MSMEs) was instead used for gambling. Online gambling has been proven to have detrimental psychological and economic impacts. For this reason, the government continues to strive to eradicate online gambling. However, the public must also be more aware of the dangers it causes.

International collaboration with the Financial Action Task Force (FATF) is also needed to overcome the rise of online gambling, most of the perpetrators of which come from abroad. With firm action and strong cooperation, the state can protect society and the national economy from the threat of online gambling. )* The author is a Public Policy Observer

Comments (0)
Add Comment