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Indonesia Freezes 7,500 Bank Accounts to Combat Online Gambling

380_000_gambling_platforms_shut_down_in_indonesias_latest_action Indonesia is ramping up efforts to eradicate online gambling, with Bank Indonesia (BI) freezing 7,500 bank accounts linked to illegal gambling activities. Deputy Governor Juda Agung announced the measures during a press conference at the Ministry of Communication and Digital Affairs, emphasizing the central bank’s commitment to eliminating online gambling nationwide.

Fraud Detection and Account Freezing

Agung explained that the initiative is a collaborative effort involving payment service providers from both banking and non-banking sectors. These providers are required to implement advanced fraud detection systems to identify accounts involved in online gambling and other fraudulent activities.

“Payment service providers, both banks and non-banks, must have fraud detection systems (in place) to identify accounts used for online gambling transactions and other fraud,” Agung said. Once identified, these accounts are reported to BI, which traces and freezes them, rendering the account holder unable to withdraw funds or conduct further transactions.

The crackdown is ongoing, with Agung affirming, “We will continue to take action against bank accounts affiliated with online gambling until online gambling activities are eliminated in the country.”

Broader Crackdown Efforts

Minister of Communication and Digital Affairs Meutya Hafid highlighted additional efforts to curb online gambling, including the establishment of an online gambling eradication desk earlier this month. As of November 4, the desk has submitted 651 requests to freeze accounts connected to gambling activities. Hafid also noted that her department has successfully blocked over 104,819 gambling-related websites since its launch.

Since the new government under President Prabowo Subianto took office on October 20, around 380,000 gambling-related sites have been dismantled. Hafid emphasized the importance of collaboration with banks to narrow the operational scope of online gambling networks.

Addressing Student Involvement

In a related development, Higher Education Minister Satryo Soemantri Brodjonegoro revealed that approximately 960,000 students, spanning schools and universities, have engaged in online gambling. He announced plans to establish dedicated reporting channels within universities to help address this growing issue.

Brodjonegoro also instructed university leaders, including those under the Ministry of Religious Affairs, to actively prevent participation in online gambling among lecturers, students, and academic staff. Minister Nasaruddin Umar confirmed that rectors from institutions such as the State Islamic University and the State Institute for Islamic Studies have been involved in strategy discussions to tackle this problem.

A Nationwide Initiative

Indonesia, as the world’s largest Muslim-majority country, has taken a firm stance against online gambling. The recent measures, backed by Bank Indonesia and government ministries, underline a coordinated effort to eliminate gambling activities from the country. The crackdown reflects the urgency brought about by the newly elected government, which has prioritized the eradication of illegal gambling as part of its broader policy agenda.

Source:

“BI to freeze bank accounts linked to online gambling“, ANTARA, November 24, 2024.

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UK Gambling Commission Prepares First Study to Combat Online Black Market

Gambling-Commission-embarks-on-black-market-study-to-improve-monitoring In a bid to clamp down on illegal online gambling, the UK Gambling Commission (UKGC) is set to release its first comprehensive study of the UK’s black market. Scheduled for publication in spring 2025, the study aims to provide the UKGC with data-driven insights into the scale of unlicensed gambling and inform its strategies for disrupting illegal operations.

The research will investigate consumer motivations, focusing on why individuals access unlicensed gambling websites. By collecting and analyzing web traffic data and player behavior, the UKGC hopes to estimate the financial impact of the black market, particularly in terms of gross gambling yield (GGY). This data will enable the regulator to better monitor and combat illegal activities, ensuring that the licensed market is protected and consumers are safeguarded from harmful practices.

How the UKGC is Measuring the Impact of the Black Market

To estimate the size of the black market, the UKGC is employing a mix of web traffic analytics and player spending data.

The regulator has collected information from over 139,000 gambling accountsacross seven UK operators between 2018 and 2019, using this data to estimate that the GGY for online slot machines on unlicensed sites is approximately £0.32 per minute. However, this approach has its limitations, particularly when it comes to other forms of gambling like sports betting, which may involve higher spending but are not accounted for in the current model.

The UKGC is also monitoring specific search terms that are likely to be used by consumers seeking unlicensed gambling platforms. By tracking popular queries via Google Trends and Similarweb, the Commission identifies search results that lead to unlicensed sites. Web traffic from these sites is then analyzed, providing insights into the behavior of UK consumers on illegal platforms.

International Comparisons and Challenges

The UKGC’s efforts align with similar studies conducted by other European regulators, such as the Netherlands and Sweden, where data has shown that consumers often spend more on unlicensed platforms than on regulated sites. This insight is reflected in the UKGC’s methodology, which acknowledges that spending habits on unlicensed sites may differ from those on licensed ones.

In a note about the study, the UKGC said, “With a better understanding of why and how consumers access unlicensed gambling websites, we can identify ways in which we can use data to identify unlicensed websites and make estimates of their usage by GB consumers.” This approach will help the Commission create more effective strategies for monitoring and disrupting the black market.

CEO Andrew Rhodes emphasized the social and economic risks posed by the black market. “The illegal market is bad from a human point of view – as it poses a risk to consumers, especially the vulnerable. It is also unlikely to operate in a way that is fair or safe. It is also a concern from an economic point of view – as it pays no tax and undercuts legitimate business,” he stated. Rhodes further highlighted the role that data analytics will play in addressing these challenges.

Future Research: Social Media and Encrypted Messaging

Looking ahead, the UKGC plans to expand its research to examine the role that social media platforms and encrypted messaging apps play in facilitating unlicensed gambling. Services such as WhatsApp, Telegram, Twitch, and Kick are increasingly being used to promote gambling content, and the Commission is eager to understand how these platforms drive traffic to unlicensed operators.

Over the past year, the UKGC has ramped up its efforts to combat the black market, issuing more than 750 cease-and-desist orders and removing 50,000 URLs from search engine results. The findings from the study, to be published in 2025, will guide the next phase of the UKGC’s strategy to combat illegal online gambling and protect consumers.

Source:

“Unlicensed Gambling Using Data to Identify Unlicensed Operators and Estimate“, gamblingcommission.gov.uk, October 21, 2024.

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