The State and Online Gambling: The Economic Impact of Online Gambling - A Case Study of Indonesia

Abstract

This study explores the social and economic impacts of online gambling in Indonesia, and how this phenomenon affects the nation's sovereignty and stability. Grounded in the Quranic prohibition against gambling, this research highlights that online gambling poses threats not only to individuals but also to society at large and the nation as a whole. Online gambling in Indonesia has reached alarming levels, with promotions spreading across various media, including government and academic websites, and involving public figures in advertising campaigns. The consequences of this practice include outflows of funds to foreign countries, an increase in addiction within society, and negative impacts on the national economy, leading to inflation and a decrease in purchasing power. Through a qualitative case study approach, this research reveals that globalization and the advancement of information technology facilitate the spread of online gambling, which in turn weakens the state's control over this illegal activity. The study also highlights government efforts to address this issue through regulations and website blockades, but significant challenges remain, particularly in controlling the flow of funds and access to cross-border online gambling sites.