Online gambling has become a global phenomenon, attracting millions of players, including in Indonesia, where many are drawn to its easy access. But have you ever wondered how online gambling actually began?
Despite ongoing efforts to shut them down, gambling sites keep popping up. The history of online gambling traces back to the 1990s when the internet was rapidly expanding.
The Rise of Online Gambling Sites
Online gambling covers a range of activities, from virtual poker and slot machines to sports betting. The first gambling sites emerged in the mid-1990s.
According to Indonesia’s Ministry of Communication and Information (Kominfo), online gambling took off in 1994 in Antigua and Barbuda. That year, the local government passed the Free Trade & Processing Act, which made it easier for businesses to obtain licenses to operate online casinos.
Around the same time, software companies began developing platforms for virtual gambling. One of the pioneers was Microgaming, which built some of the first online gambling systems. Meanwhile, CryptoLogic, a security software company, worked on encryption technology to make financial transactions secure.
Then, in 1995, InterCasino launched, becoming one of the first platforms to allow real-money bets. This marked a turning point for the industry, as online gambling became more accessible and secure for players worldwide.
However, as the industry grew, governments started imposing regulations. In 2006, the U.S. passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which prohibited gambling businesses from processing payments from American players. This forced many offshore gambling operators to withdraw from the U.S. market, though some continued operating through legal loopholes.
Online Gambling in Indonesia
In Indonesia, online gambling is strictly prohibited. The government, through Kominfo, has been actively shutting down gambling websites and cracking down on individuals who promote or facilitate online gambling, including social media influencers.
Kominfo Minister Budi Arie Setiadi has stated that the government is working closely with telecom providers to prevent the spread of online gambling. Authorities have also urged the public to report any gambling-related content they come across.
According to Semuel A. Pangerapan, Director-General of Informatics Applications at Kominfo, many gambling sites originate from countries where online gambling is legal. "Once they enter Indonesia, we take action by blocking them immediately," he explained in a statement published by Kominfo in July 2023.
The government’s efforts include blocking domain names, restricting access to IP addresses, and shutting down bank accounts linked to gambling transactions.
Still, despite these efforts, online gambling remains a persistent challenge, with operators constantly finding new ways to bypass restrictions.