The rise in gambling cases within society has been an ongoing issue for years. Today, gambling practices are increasing alongside technological advancements.
The Financial Transaction Reports and Analysis Center (PPATK) recorded online gambling transactions reaching IDR 327 trillion by the end of 2023.
The Task Force for the Eradication of Online Gambling also noted that 2.37 million people were caught in online gambling, with 80% from lower-middle economic groups.
Moreover, online gambling has also infiltrated the student community. To date, approximately 960,000 students and university students have been involved in online gambling cases.
Of the many online gambling users in Indonesia, 60% are from the Millennial and Gen Z generations. Studies show that 82% of people who access the internet have seen online gambling advertisements.
Among the various social media platforms, Instagram and Facebook rank highest for online gambling ads. Additionally, illegal movie streaming sites and online games have become fertile grounds for online gambling users.
In response to the growing trend of online gambling, an investment, financial, and banking analyst and academic from the Management program, Dr. I Wayan Nuka Lantara, explained that the main factors behind online gambling among the younger generation are technology and ease of access.
Furthermore, the ease of payment methods has increasingly enticed students to deposit money continuously. A permissive environment seems to normalize gambling, which the state prohibits.
“Online gambling is popular because it requires a small capital but promises multiplied profits,” Dr. Lantara said on Monday (Nov. 15) during an expert discussion at the FEB UGM Public Relations room.
According to Dr. Lantara, online gambling has proven to cause adverse effects in economic, psychological, social, and health aspects.
Dr. Lantara highlighted the term “gambling disorder,” which arises when someone experiences repeated losses but continues to gamble with the hope of greater winnings.
“It’s like digging a hole—the more they dig, the deeper the hole becomes, and they end up trapped in it,” Dr. Lantara explained.
In Germany, the cost of rehabilitating gambling victims is even higher than the transactions themselves. Crime rates will increase if this issue is left unchecked.
The worst-case scenario from the rise of online gambling is a recession caused by weakened consumer purchasing power. This results from misallocating household budgets towards unproductive activities like online gambling.
The large number of online gambling users and transaction amounts is seen as detrimental to the state. In this case, the state loses the opportunity cost of money circulating online gambling.
Based on the earlier data, the country lost IDR 327 trillion, which could have been allocated to more beneficial uses.
“There needs to be awareness from the government to stop online gambling, as it causes significant losses,” Dr. Lantara stated.
As a lecturer, Dr. Lantara suggested establishing a special forum for preventing online gambling within academic environments to raise students’ awareness of its dangers.
Additionally, financial management education is essential to ensure students can manage their finances wisely and avoid budget misallocation.
Author: Tiefany
Editor: Gusti Grehenson
Post-editor: Afif