In recent years, Ceuta and Melilla have undergone a true transformation. With traditional trade connections to Morocco having virtually disappeared, both autonomous cities have turned to the digital economy. Now, more than 60% of all Spanish online gambling licenses are concentrated here, and the number of jobs in this sector is growing every month.
The official opening of the commercial customs office in Ceuta last September did not have the expected effect. In a month, only one shipment had crossed the border—a truckload of sand. In Melilla, the situation is even more stagnant: since the formal reopening of customs, not a single delivery has crossed the border. Despite officials’ assertions that checkpoints are fully operational, business owners complain about endless restrictions and Morocco’s unpredictability. As a result, trade has come to a virtual standstill, and entrepreneurs are looking for new avenues for growth.
Inspired by the example of Gibraltar, Ceuta and Melilla have bet on online gaming. Special tax regimes are in place here: corporate and social security taxes are significantly lower than in the rest of Spain. For example, in Ceuta, the corporate tax rate for gaming companies is only 10%, and just 7.5% for the first two years. This has attracted dozens of major operators, including giants like Betway, Beltfair, and William Hill. Melilla has also seen an influx of new companies, including the Swedish Glitnor.
According to the municipal company Procesa, the online gambling sector in Ceuta had a turnover of €7.5 billion last year, up 12% from the previous year. The industry’s contribution to the city’s GDP amounted to €155 million—representing 8.2% of the local economy. In Melilla, the figures are more modest, but here too, online gaming accounts for 17% of all Spanish licenses and provides over a thousand jobs.
Local authorities are actively promoting their tax advantages at international events, such as London’s ICE Gaming exhibition. Courses are being launched in these cities to train specialists and reduce youth unemployment, which exceeds 60%. However, not everyone is pleased with these developments. Some political parties and civil organizations warn of the risks of increased gambling addiction and related social issues.
At the same time, attempts to revive traditional trade with Morocco face bureaucratic obstacles. Unlike other Spanish ports, only a limited list of goods is allowed here, and paperwork can take weeks to process. Small businesses are suffering, and many entrepreneurs are forced either to change industries or to leave altogether.
Experts note that after Brexit, Gibraltar lost some of its appeal for gaming companies, and now Ceuta and Melilla are becoming new hotspots for online gambling in Spain. However, the question of the long-term impact of this economic policy on the local population remains unresolved.
