Indonesia urged to follow UAE’s footsteps on gambling laws
Indonesia is once again weighing the idea of legalising gambling as lawmakers debate the potential economic benefits amid deep-rooted religious and cultural opposition.
Lawmaker Galih Kartasasmita sparked a fresh discussion during a meeting with the finance ministry in May 2025 by pointing to the United Arab Emirates (UAE) as a possible model, according to a report by SCMP. “The UAE is ready to run a casino. Their ministries are thinking out of the box,” he said.
In October 2023, the UAE became the first Gulf country to legalise commercial gambling formally. It issued its first casino licence to Wynn Resorts, a Las Vegas-based operator, for a resort in Ras Al Khaimah—far from conservative strongholds like Dubai or Abu Dhabi.
To regulate the move, the UAE established a federal gambling authority to oversee licensing, taxation, and operational control. The strategy focuses on isolated zones targeting tourists, aiming to boost economic diversification and job creation while avoiding the promotion of gambling to the general population.
Taking notes from Abu Dhabi?
Indonesia, where nearly 90 percent of the population is Muslim, currently forbids all forms of gambling. But some argue that, like the UAE, it could legalise gambling in tightly controlled areas to draw foreign tourists and revenue.
In Bali, a local member of the Indonesian Young Entrepreneurs Association proposed a casino last year, suggesting it could generate up to $801 million (€696.3 million) to address the island’s ongoing waste and water issues.
Supporters like international law professor Hikmahanto Juwana argue that legal casinos could help reduce harmful online gambling practices, which have been linked to crime, suicides, and financial ruin. “If gambling continues illegally, the real winners are countries like Cambodia and Myanmar,” he said.
He also noted that casinos could be limited to foreign visitors and placed on designated islands such as Batam or Bali. “There’s no need to overhaul laws. According to Article 303 of the Criminal Code, gambling is only banned without a permit,” Hikmahanto added.
Strong opposition persists on casinos
However, the idea has been met with strong opposition. Muhammad Kholid from the Prosperous Justice Party warned of high social costs, citing studies that claim every dollar earned from gambling leads to seven to ten dollars in social losses. Economist Nailul Huda said the state should first explore more sustainable revenue options, such as better management of coal and nickel exports.
Historically, gambling was legal in Jakarta under Governor Ali Sadikin in the late 1960s, but it was banned again in 1974 following pressure from several religious leaders.
As the debate resurfaces, many agree Indonesia must tread carefully. While the UAE offers a potentially viable path, applying it within Indonesia’s own cultural and religious framework will require both sensitivity and serious public consultation.
