Digital game used as front for black-market betting racket generating billions of rupiah
Mobile Gaming Turns Criminal as In-App Chips Fuel Underground Betting Economy
Indonesian authorities have uncovered a sophisticated illegal gambling operation exploiting the popular Higgs Domino Island mobile game, with 12 suspects arrested and over 100 computers seized in a series of coordinated raids in Pekanbaru, Riau province. The syndicate, active since December 2023, is alleged to have earned more than Rp 3.6 billion (approximately $220,000) through illicit chip trading disguised as legitimate gameplay.
According to Riau Police Chief Inspector General Mohammad Iqbal, the crackdown targeted two key locations—a shop-house functioning as a gambling hub and a residential base. The seized computers and evidence indicate a highly structured operation with teams working around the clock to farm in-game jackpot chips and convert them into real-world currency via black-market channels.
High-Stakes Game of Chips: How Virtual Currency Was Monetised
Higgs Domino Island allows users to play card-based games and collect virtual chips. While legal in appearance, this case has exposed the app’s vulnerability as a tool for real-money gambling.
The syndicate operated a two-part system:
Team One: Focused on accumulating large volumes of chips by playing games continuously to win jackpots.
Team Two: Handled the conversion of digital assets into cash, packaging 1 billion chips for Rp 25,000 (approx. $1.60) and distributing through black-market networks.
Authorities estimate daily syndicate earnings at Rp 25 million (approx. $1,580), scaling to Rp 750 million monthly—highlighting the scale and profitability of this illegal enterprise.
Cross-Border Element and Legal Consequences
The group’s alleged ringleader, Jonathan Julian Leslie, was captured at Sultan Syarif Kasim II International Airport upon re-entry from Malaysia, suggesting the operation may have had regional dimensions. He and the others face charges under Indonesia’s Electronic Information and Transactions Law, with potential penalties of up to six years in prison and Rp 1 billion in fines.
Regulatory Warning and Rising Social Risk
Authorities warned of the increasing threat posed by digital gambling platforms, particularly to youth. The combination of easy access, mobile interactivity, and disguised financial incentives makes apps like Higgs Domino Island a magnet for both addiction and exploitation.
The case has prompted calls for stricter regulatory oversight of virtual gaming platforms, especially those that incorporate tradeable in-game assets. Lawmakers and digital watchdogs are urging tighter app store guidelines, enhanced tracking of virtual currencies, and tougher enforcement to prevent similar cases.
Looking Ahead: A Wake-Up Call for Tech Regulators
This incident is part of a broader trend across Southeast Asia, where digital games are being weaponised for illegal gambling. Indonesia’s crackdown could serve as a regional benchmark, prompting tech companies and governments to reassess how mobile games with financial mechanics are monitored and regulated.
As Inspector General Iqbal warned: “These aren’t just games anymore—they’re covert platforms for serious crime. The younger generation is most at risk.”
