Southeast Asian online gambling is rising to historic levels due to the advancement in technology and shifting customer preferences as well as the impacts of COVID-19. The increasing level of digital betting activities have not gone unnoticed by governments, investors and regulators within the region igniting rhetoric on legal express on economic impact and social utility of the emerging trading frontier.
Recent years saw the rise of Philippine-based gambling operations targeting offshore markets in greatest detail. These POGO companies have remained the leading sources of incomes to the Philippines, where they currently earn billions of dollars monthly. But the sector has been linked with various crimes such as money laundering, human trafficking and cases of illegal recruitment.
In Southeast Asia, the recent development of the internet gambling has been characterized by a highly developed structure of legal systems. Some countries have adopted this industry as a way of enhancing their economies others have adopted it in a conservative way. For example, Singapore has cracked down the proviso of online gambling via a strict policy and only allowed those companies that have licenses. On the other hand some jurisdictions such as Cambodia which have opened their doors to the operators of online gambling sites have later on put on various bans based on social problems and crime.
The COVID-19 has also contributed to the development of online gambling in the region in the past years. Due to lockdowns and social distancing measures, physical casinos remaining open or only partially open, many bettors have opted online gambling. It has not only increase sales of existing online operators but has also forced physical casinos to improve their online branches greatly.
Though, there are various positive effect of online gambling however; there are various negative consequences which are worthy of consideration and they include; Several mental health professionals, as well as social workers in the SEA countries involved the survey, noted that there were more cases being presented related to gambling, especially to the affiliates of the younger generation who are active users of the social media. Even though the gambling industry promotes convenience for the players these discoveries have made people urge authorities to enact tough laws to counter this habit as well as offer support to those suffering from this disorder.
Several states are struggling to determine whether they would benefit much from online gambling or whether it will be costly to the society. Malaysian authorities have, for instance, raised the ante in the fight against online gambling that is being operated and owned illicitly, even as authorities contemplate on means of legitimizing and legalizing online gambling so that they may be taxed. Indonesia has stood firmly against all types of gambling as have many other countries in the past, now the country is under pressure to address the issue of offshore gambling sites that are gaining popularity among Indonesians.
The expansion of online gambling also appears to have stirred a growing interest from global investors and operators too. Most of the big names of gaming companies in America Europe and Australia are planning a big push into Southeast Asia that they are eyeing as a growth market. The new foreign investments can enhance the region with new technologies and practices but the long term effects of the economical benefits and the flow of gambeling revenues to overseas firms is questionable.
This paper aims at discussing the changes in regulation of the online gambling industry with Southeast Asian countries as examples of the tendency to find the new ways of regulation. Some are thinking about applying blockchain technology and cryptocurrency in the field of improving the real betting transactions with aim to eliminate fraud. Some are exploring the application, of ‘big data and analytics as well as artificial intelligence to detect individuals displaying signs of pathological gambling or money laundering.
Online gambling in the SEE countries is still in its infant stage and has many possibilities of generating huge revenues and even has problems that are profoundly concerning. Indeed, as various authorities and communities in the affected regions discuss the problem and evolve their strategies, the further advancements could be expected on the levels of legislation, innovation, as well as markets. The conclusion of these discussions will be significant for the development of gambling services and, therefore, for the general economic and social context of the countries in Southeast Asia.