In a decisive move to curb illicit online gambling activities, the Financial Services Authority of Indonesia (OJK) has taken action by blocking a staggering 1,700 bank accounts. Dian Ediana Rae, Chief Executive of Banking Supervision at OJK, revealed during a virtual press conference on October 9, 2023, that this crackdown might just be the tip of the iceberg, with the possibility of more actions to follow.
Banks Tighten Vigilance Against Gambling Transactions
Dian emphasized that Indonesian banks are rapidly enhancing their systems to detect and prevent gambling-related transactions. This proactive approach aligns with OJK’s commitment to curb illegal gambling activities within the nation.
Coordinated Efforts for Further Scrutiny
In a coordinated effort to tackle the issue comprehensively, OJK has urged banks to report these blocked accounts to the Financial Transaction Reports and Analysis Center (PPATK) for in-depth investigation. This multi-agency approach ensures that there is a follow-up process to address any financial irregularities.
Staggering Rise in Online Gambling Transactions
The urgency of this crackdown becomes evident when considering the staggering numbers associated with online gambling transactions. PPATK reported a substantial surge in the flow of money through online gambling activities, which reached Rp81 trillion ($5.4 billion) in 2022, up from Rp57 trillion in 2021.
Alarming Rise in Suspicious Reports Involving Minors
Natsir Kongah, a spokesman for PPATK, drew attention to the alarming trend of suspicious financial transaction reports related to online gambling. Of particular concern is the involvement of schoolchildren in online gambling activities. In 2021, PPATK received 3,446 such reports, a number that skyrocketed to 11,222 in 2022.
Continued Vigilance in 2023
The trend shows no signs of slowing down in 2023, with 916 reports received in January, 831 in February, and 1,096 in May. These figures underscore the urgency of addressing the issue and protecting vulnerable individuals, especially minors, from the dangers of online gambling.
Global Online Gambling Industry Growth
These actions by OJK come at a time when the global online gambling industry is experiencing rapid expansion. The industry has doubled in size over the past four years, boasting 176 million users and generating over $95 billion in revenue in 2023.
Key Revenue Streams
Online sports betting takes the lead as the largest revenue stream, expected to rake in a substantial $43.5 billion in 2023. Online casinos also continue to flourish, with revenue soaring from $16.6 billion in 2019 to an impressive $34.8 billion in 2023.
Surge in Online Gamblers
The number of online gamblers continues to soar, with over 80 million new users joining the fold since 2019, bringing the total to a staggering 176 million in 2023.
Indonesia’s decisive actions against online gambling reflect a broader global effort to regulate and address the challenges posed by the burgeoning industry, especially concerning vulnerable demographics like minors.