Illegal Online Gambling as Cyber Economic Crime in Indonesia and Southeast Asia

Abstract

Illegal online gambling has developed into a cyber-enabled form of economic crime with substantial consequences for financial systems, money laundering, and transnational organized crime throughout Southeast Asia. This study examines the regulatory framework, effectiveness of law enforcement, and patterns of illicit financial flows associated with online gambling in Indonesia and the wider Southeast Asian region. It employs a systematic review methodology integrated with a normative legal approach and comparative analysis of relevant legislation, academic literature, reports issued by the Indonesian Financial Transaction Reports and Analysis Center, and publications of the United Nations Office on Drugs and Crime. The findings indicate that, although Indonesia has established a legal basis through the Indonesian Criminal Code, the Electronic Information and Transactions Law, and the formation of the Task Force for the Eradication of Online Gambling, law-enforcement efforts remain limited by regulatory inconsistencies, inadequate digital-forensic capabilities, and the cross-border structure of online gambling networks. Moreover, illicit proceeds generated through online gambling are increasingly connected to money-laundering activities and transnational cybercrime. These developments highlight the need for a more integrated and coordinated strategy to address illegal online gambling and its related financial and cyber threats. The study recommends harmonizing regulatory frameworks, enhancing digital-forensics-based law-enforcement capacity, strengthening financial-intelligence mechanisms, and expanding cooperation among ASEAN member states to improve the detection, investigation, disruption, and prosecution of illegal online gambling networks and associated financial crimes.