Friends who follow the gambling industry may have heard recently that with the partial relocation of the Philippines' POGO to Indonesia, the Indonesian government has also started to intensify its crackdown on the illegal gambling industry.

Recently, Indonesia has once again targeted local illegal gambling. For more details, see: "27 Arrested, Involving 685 Billion! Indonesia Raids Online Gambling Network Controlled by Chinese Citizens!"

Earlier, Teguh Arifiyadi, head of the Indonesian Ministry of Information and Application Control, announced that the government will adopt a zero-tolerance policy towards platforms that participate in or support online gambling without registration.

These platforms include international giants such as PayPal and Google, as well as social media services like Facebook and X (formerly Twitter). If they do not comply with regulations, they face the risk of immediate closure.

To combat the proliferation of online gambling, Indonesia regularly conducts internet monitoring and encourages the public to report suspicious activities. Over the past seven years, 3.8 million online gambling sites have been blocked, half of which were shut down last year alone.

Since the Indonesian officials have a zero-tolerance attitude towards gambling, why should we still pay attention to the Indonesian market?

Since gambling is completely prohibited locally, it is basically impossible to investigate the scale of the Indonesian gambling industry from the market.

However, it is precisely because of the official crackdown on online gambling that some data released by the officials have shown PASA the huge development opportunities hidden in Indonesia!

According to the latest data from the Indonesian Ministry of Communications and Information, the online gambling industry in Indonesia has developed rapidly this year, with gambling transactions nearing 400 trillion rupiah (approximately 25.79 billion USD), and there are about 3 million active participants in illegal online casinos.

According to an unofficial estimate by PPATK, the expenditure on online gambling in 2024 is likely to have reached 800 trillion rupiah. And every 8 out of 10 Indonesians are interested in gambling, having tried similar activities at least once in their lifetime. Just in 2023, 3 million Indonesian residents registered 168 million transactions on online casino websites, which is consistent with the data from the Indonesian Ministry of Communications and Information.

This growth has prompted the government to intensify its efforts to crack down on illegal gambling activities conducted through online platforms.

Therefore, in this article, PASA will explore the potential development of online gambling in Indonesia, a populous country, and see what types of gambling are most attractive to local Indonesian players.

I. Current Status of the Indonesian Gambling Market

Indonesia is the fourth most populous country in the world, with a population of 284 million, over 85% of whom are Muslims. Due to religious characteristics, Islamic law completely prohibits gambling activities, and the Indonesian government also implements strict legal measures.

According to the Indonesian Criminal Code (KUHP), any form of gambling is illegal. Participation in gambling activities, whether offline physical casinos, gambling activities, or online gambling, is considered a criminal act and may face heavy fines or even imprisonment.

In 1974, Indonesia enacted the "1974 Anti-Gambling Decree" to further strengthen the prohibition of gambling, explicitly stating that no one may organize or participate in gambling activities in any form.

Although online gambling is becoming increasingly popular worldwide, in Indonesia, online gambling is strictly prohibited, just like offline gambling.

All websites and applications involving gambling are illegal, and the government uses technical means to block and filter these websites.

In addition to legal penalties, local communities in Indonesia usually impose additional social pressures on those found engaging in gambling activities.

Despite this, gambling activities have actually been deeply rooted in Indonesian culture and history. Gambling was widely prevalent in Indonesia as early as the 1300s, and many Indonesians, including royal family members, considered various types of gambling activities as daily entertainment.

It was not until the 1970s that the Indonesian government officially followed Islamic law and explicitly prohibited gambling activities in Indonesia.

However, millions of Indonesians have not stopped participating in gambling activities due to the Indonesian government's gambling regulations. To avoid the Indonesian government's legal norms, Indonesian gambling has transformed underground and remains active in the daily lives of Indonesians.

With the development of technology, many offline Indonesian gamblers have begun to switch to the online Indonesian gambling market. Indonesian gamblers have started using VPNs or entering other third-party gambling platforms, making Indonesian package networks the best choice for Indonesian gambling.

It is worth noting that in some areas of Indonesia, especially in remote villages and places with strong traditional cultures, gambling sometimes exists in the form of cultural customs activities, such as cockfighting or other local festival competitions.

However, the law still strictly prohibits these activities, so unlike some emerging gambling countries, small cities in Indonesia may contain a larger scale of potential gamblers.

In general, due to the large Muslim population's negative attitude towards gambling, the possibility of legalizing gambling in the short term is very low.

Moreover, it is worth noting that Bali, as an international tourist destination in Indonesia, occasionally discusses allowing certain forms of gambling to attract tourists, although there are currently no official plans or laws allowing gambling on the island. Whether Indonesia will open up gambling legally in specific areas is worth our attention.

But returning to what we said earlier, although gambling is prohibited in Indonesia, just like some countries that prohibit gambling, game merchants can still enter the Indonesian market through legitimate channels using real money games.

According to data from Statista, the total revenue of all casino games in Indonesia reached 13.22 million USD in 2022.

The expected total revenue's annual growth rate (2022-2029 compound annual growth rate) is 5.58%, and the market size is expected to reach 22.45 million USD by 2029.

These are the various casino games that can be downloaded through Indonesia's Apple store and Google play channels.

This estimated data, PASA believes, is underestimated, possibly due to the strict crackdown by the Indonesian government on gambling games, many games are likely to be suddenly seized and removed by the officials;

We can also see from the data published by Statista that the revenue share of in-app purchases in various casino games is actually not high, which is mainly due to regulatory response policies, and more game merchants will increase their revenue through in-app advertising.

Despite this, PASA expects the growth rate to be higher, considering Indonesia's rapid GDP growth, which has consistently maintained an annual growth rate of over 5% since 2016, making it one of the fastest-growing economies in the world.

With the strong consumption of Indonesians, the per capita GDP is close to 4000 USD, exceeding Vietnam and also surpassing India, the most populous country in South Asia, bringing strong consumption momentum to Indonesia's economic growth.

Indonesia is also the largest mobile gaming market in Southeast Asia, with nearly 100 million gamers, and Indonesia has successfully squeezed into the top 3 in terms of mobile game downloads, only behind the United States and India.

Therefore, PASA believes that even the casino game market launched through compliant channels is enough to make game merchants very profitable.

II. Indonesia's Most Popular Casino Games

Before analyzing Indonesia's casino games, let's first take a look at the composition of Indonesian gamers.

Indonesia has about 213 million internet users, accounting for 77% of the total population, and it is expected that 89.2% of Indonesians will own smartphones by 2025, including 100 million gamers.

According to research by Start.io, the user distribution of casino games is very similar to that of India, with online casinos in Indonesia being more attractive to women, with as many as 68% of women participating in gambling.

As for age, most players are very young—aged between 18 and 24.

The educational level of the players, with nearly half having a medium to low level of education, matches what we mentioned earlier about small cities and remote areas in Indonesia having a stronger gambling culture.

Additionally, Android phone owners dominate this region, while the prevalence of iOS is much lower, which also perfectly matches the above points, as Android phones are usually priced and configured lower than iOS.

Based on this background, let's take a look at the most popular gambling games in Indonesia:

1. Domino

This is one of the most popular board game plays in Indonesia, and there are many Domino-style board games on the market in Indonesia.

Domino is a game where players compare points and play cards or connect in sequence. Each player takes 7 cards, and the person with Double 6 starts (if there is no Double 6, then Double 5, and so on, if there are no Double cards, then the one with the highest total points starts).

This type of game occupies 50% of the activity in the top 10 board games, and Indonesian users have a high acceptance of this type of game. It is very easy to acquire customers locally, and its status is similar to Rummy in India or Pachinko in Japan.

Currently, the more representative Indonesian gambling game market includes "Higgs Domino," which ranks in the top 3 in terms of game revenue, making it the hottest game in the Indonesian gambling game market.

According to official statistics of mobile games, the average profit or revenue created by each user in the game (ARPU) averages 10 USD, and the growth rate of ARPU is twice as fast as that in India.

"Higgs Domino" does not have only one gameplay like typical Casino games, but integrates popular Domino gameplay in Indonesia, including Domino Classic, Domino Bet, QiuQiu, etc. It also covers some casual games, such as Puzzle, Chess, Mancala, etc., creating a game lobby format.

"Higgs Domino" also includes a "Friends/Chat" system in the game, following the trend of socialization in board games, but there is a prerequisite for using this feature—only by activating the lowest level of Bronze VIP (10,000 Indonesian rupiah, approximately 4.66 RMB) can the chat function be activated.

Although Domino-style board games are the most popular games in Indonesia, there are already many on the market, and they are relatively mature. Entering the Indonesian market by focusing on Domino gameplay may seem challenging.

However, board games with local Indonesian gameplay that are relatively scarce in the market may be a good opportunity for board games to overtake in a curve when going overseas.

2. Samgong

Samgong is one of the popular traditional board games in Indonesia. In the game, players compete against the dealer. If the total score of the cards is less than 30, the highest score is compared; if the total score equals 30 points, it is called Samgong, which is the highest card; if the total score exceeds 30 points, it is bankruptcy and failure. If a player has drawn five cards in a row but the total is still less than 30 points, that player's cards are the highest in the game.

Samgong's gameplay is simple, with a strong element of probability, and it also tests the player's courage and observation skills.

3. Capsa Susun

Capsa Susun, known as Chinese Poker, has developed a local Indonesian gameplay with the help of local board game rules. Players combine their 13 cards in a 3-card, 5-card, 5-card manner and compare with other players to determine the winner.

Capsa Susun tests the player's strategic thinking and requires players to make quick decisions in a short time.

4. Cangkulan

Cangkulan is also a traditional board game in Indonesia. This game is also known as Omben, Drinks, or Ambengan in some regions of Indonesia and is usually played by 2-4 people together.

The gameplay of Cangkulan is simple. The player who deals the cards starts, and the subsequent players must discard a card with the same suit or leaf as the previous card. If a player discards the "strongest" card or a card of higher value, that player has the right to choose the next card. When a player's cards are used up, the game ends.

5. Classic Casino Games

Classic types of casino games such as Texas Hold'em, Blackjack, Baccarat, Roulette, and Slot Machines are old topics and not worth expanding on.

If the game is launched through a collection of these gameplay options, the most important thing is to focus on whether the launch side can make differentiated launch choices.

For the advertising placement of the Indonesian gambling market, PASA will write another article to take you through some excellent advertising placement strategies.

6. Sports Betting and Fantasy Sports

Sports betting is also a good gameplay, and it is one of the gambling games that online gamblers in Indonesia love very much.

Indonesian players usually prefer football and badminton, the national sport of Indonesia. These two can also develop real-money gameplay for fantasy sports, which is a very good idea for markets with strict regulation.

PASA also mentioned in the article "From North America to the World: Fanduel Opens the Door to a 60 Billion USD Market with Fantasy Sports! What Fascinating Aspects Does Fantasy Sports Hide?" that operators and game merchants can gradually open up larger regional gambling markets through fantasy sports.

The last is esports betting. As one of the few industries supported by the Indonesian government, although online gambling is still prohibited, this project type mainly benefits from the growth of its audience.

In the Southeast Asian esports industry market, 43% of esports players are located in Indonesia, which will be a market with an extremely large audience betting scale.

Conclusion

After understanding the Indonesian online gambling market and the popular game types in Indonesia, you should have a deeper understanding of entering the Indonesian online market.

In summary, the diversity of gambling game types also brings more different gambling game options to players. Some older gambling players prefer online board games, while relatively younger gambling players love sports betting and competitive online games.

To enter the Indonesian online gambling market, avoiding Indonesian government regulation is the primary goal, and the popular Indonesian online game choices are an essential focus that cannot be ignored.

These popular games in the Indonesian online gambling market, PASA can provide good supplier solutions for everyone. If you are still hesitant to enter the Indonesian online gambling market, you can continue to explore in-depth with PASA.

We look forward to discussing more unique insights about the Indonesian gambling market with our readers and sincerely invite you to follow the global iGaming leader's overseas information platform PASA to get more first-hand industry information.

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