Monetisation Scheme Behind Online Gambling Using Live Pornography Uncovered

The Jakarta Metropolitan Police have successfully uncovered a pornography crime case linked to electronic gambling within the HOT51 application. A monetisation scheme behind this service has been revealed.

For context, a monetisation scheme is a strategy used by individuals, businesses, or content creators to generate revenue from their products, services, or assets. In this case, they ‘sold’ pornographic services while embedding gambling elements within them.

“Investigation results show that the application was allegedly used for gambling and live broadcasts containing pornographic content,” stated the Head of Jakarta Metropolitan Police, Inspector General Asep Edi Suheri, during a press conference on Friday (26/6).

According to reports, nine individuals and five corporations have been named as suspects in this case. The nine individual suspects include WS, BF, RM, OV, XR, and MPN, as well as a foreign national currently on the wanted list, SB.

Meanwhile, the five corporations identified as suspects are PT HSR, PT PDN, PT MDS, PT CDS, and PT IDI.

Individual suspects face charges under Article 426 of the Criminal Code, carrying a prison sentence of up to 9 years and a maximum fine of Rp 2 billion. They also face Article 407 regarding pornography offences, with a minimum sentence of 6 months and a maximum of 10 years, alongside fines ranging from Rp 200 million to Rp 2 billion. Furthermore, Article 607 regarding money laundering carries a maximum sentence of 15 years and a fine of up to Rp 5 billion.

The five corporations are charged under various articles of the Criminal Code regarding corporate crime, with potential prison sentences of under 7 years and fines of up to Rp 2 billion for Category VI corporations.

Modus Operandi

Head of Criminal Investigation, Commissioner Iman Imanuddin, further explained the case. The pornography crime was operated through the live streaming feature within the HOT51 application. Viewers watching the erotic broadcasts provided payments in the form of ‘virtual gifts’ to the female hosts.

To facilitate these payments or deposits for purchasing gifts, the syndicate deceived the national banking system using virtual account channels managed by the payment gateway PT PDN, virtual accounts from PT HSR, and corporate accounts under PT KAJP.

“The financial profits collected from these virtual gifts do not stop within the application. The proceeds from these pornography crimes are then converted into cash through payment gateway corporations and shell company accounts,” explained Commissioner Iman.

“The virtual account facilities of these payment gateway corporations were intentionally misused so that the flow of illicit funds could be collected and disguised,” he added.

Once converted to cash, the illicit funds were distributed in a structured manner as tiered commissions to a network of field agencies. The commission distribution followed a four-tier agency hierarchy. One suspect, OV, was arrested in North Aceh and acted as a master agent, responsible for recruiting hosts, agents, and super agents, managing commission distributions, and directly receiving funds from the payment gateway accounts.

Fund Circulation Reaching Rp 559 Billion

The circulation of funds in this case has reached billions of rupiah, with a total volume of approximately Rp 559.8 billion. Commissioner Iman stated that the money circulation was conducted through partners of the payment gateway companies, including: PT IDI managing Rp 161.8 billion, PT MDS managing Rp 68.2 billion, and PT CDS managing Rp 26.3 billion.

Investigators have blocked 118 bank accounts and virtual accounts and seized cash amounting to Rp 14,962,046,000.

“This scheme clearly illustrates how the flow of criminal funds from the HOT51 application was collected and disguised through the misuse of corporate payment gateway virtual account facilities and shell company accounts,” he explained. The illicit funds were distributed structurally to pay the gambling and pornography agency network.