Ceuta’s online gambling boom fills the economic gap left by border trade with Morocco

Ceuta is using online gambling companies to reshape its economy after years of relying on cross-border trade with Morocco, with the sector now making up around 12% of GDP and creating more than 1,200 direct jobs, according to figures presented by local authorities and reported by Spanish media.

Ceuta’s government has made online gambling a key part of its new economic plan to cut down its reliance on trade with Morocco. The border trade was badly hit after the Tarajal crossing was closed in 2020 during the COVID-19 pandemic, and later faced more pressure because of migration tensions.

For years, Ceuta’s economy was tied to the daily movement of people and goods across the border with Morocco. That made the city vulnerable every time relations with Morocco shifted, trade slowed or border rules changed.

President Juan Vivas said the growth of online gambling companies shows that Ceuta can attract investment and create jobs through technology and digital industries.

Ceuta’s Economy and Digital Transformation Minister Kissy Chandiramani said the online gambling sector has become a key driver of the city’s economic shift, helping attract new companies, boost tax revenues and create more jobs.

The government says tax incentives played a major role in attracting online gambling companies to Ceuta. According to figures shared by Chandiramani and reported by local outlets, Ceuta has brought in more than 52% of gambling licences that previously operated from places such as Gibraltar and Malta since the tax reduction scheme was introduced in 2008.

To benefit from the lower tax rates, companies must meet certain conditions, including having a large part of their workforce based in Ceuta and keeping their tax residence in the city.

The authorities say the results are visible as the 10 largest online gambling companies operating in Ceuta generated around €6.34 billion in turnover over the last years and contributed about €20 million in tax revenue and employment in the sector has reached 1,228 workers.

The sector’s growth has become a political debate inside Ceuta. The local opposition party Ceuta Ya! has questioned the government’s claims, saying that official figures do not fully show the real impact of online gambling on the local economy.

Opposition lawmaker Julia Ferreras asked the government for more detailed information, including how many workers actually live and work in Ceuta, and whether some employees may only be registered as residents to meet the requirements for tax benefits.

Chandiramani rejected those accusations, saying the government was presenting concrete figures rather than promises. She pointed to the rise in social security registrations and said the sector continued growing despite major challenges, including the pandemic, migration pressure and the border closure.