Jakarta police claim that most online gambling sites accessible in Indonesia are controlled by operators from the Greater Mekong Subregion, including China, Myanmar, Laos, and Cambodia. The police also discovered that gambling companies intentionally employ citizens from Indonesia and other countries as operators to expand their market.
Inspector Pol Krisna Murti, the head of international relations for the Indonesian National Police, stated at a press conference in South Jakarta, "The masterminds behind this case are mostly organized crime groups from the Mekong region countries."
Krisna mentioned that the COVID-19 crisis, leading to mobility restrictions, has exacerbated online gambling activities in the Mekong region. Investigations found that to expand the gambling market's reach, governments employed personnel from various countries, including Indonesia, as additional operators.
Krisna said, "They are conducting operations organized by mafia groups that control the gambling industry."
It is estimated that criminal groups from the Mekong countries generate over $43.8 billion annually, accounting for nearly 40% of the GDP sum of Laos, Cambodia, and Myanmar. Besides online gambling, they also assist in human trafficking, help develop advanced digital technologies for fraud, and provide money laundering services.
Below is a brief introduction to the gambling situation in Mekong countries.
China
According to Business Insider, except for state-owned lotteries, gambling is illegal in most parts of China. However, in those countries where gambling is not allowed, gambling companies commonly establish clone sites, mimicking established websites.
"This is very, very common. China is active in online gambling," said Ben Lee, managing partner at IGamiX consultancy in Macau, China.
Experts say it is hard to quantify the market size, but the People's Bank of China estimated that about $54 billion related to gambling activities flowed out of China in 2019.
Myanmar
Reportedly, illegal online casino operators in Myanmar have diversified their operations, including internet fraud and cryptocurrency laundering controlled by armed groups.
According to the United States Institute of Peace (USIP), the Yatai New City located on the Myanmar-Thailand border has become the target for the "Beyond Blockchain City" (BCB Blockchain) project, aimed at becoming a hub for covert money laundering. The casino city project has a budget of $15 billion, aiming to earn $25 billion annually from Chinese gamblers.
Laos
According to a report by the French Asian Research Network (GIS Asie), the development of casinos in Laos has become a symbol of neoliberal transformation. Its purpose is to attract foreign tourists, especially from China, Thailand, and Vietnam, where gambling is strictly prohibited and punishable.
Cambodia
Since 1993, casinos have emerged in border towns such as Gogong, Pailin, Poipet, Chong Chom, Khsach Kandal, and Sihanoukville in Cambodia. By 2014, the gambling industry had generated $25 million in tax revenue, with an annual growth rate of 15%.
It is estimated that profits from online scams in Cambodia exceed $12.5 billion annually, accounting for half of the country's official GDP. Reports indicate that most of these profits flow to the ruling elite.
