The autonomous city of Ceuta of Spain is undergoing an unprecedented process of economic transformation. What began as a strategic commitment to reduce dependence on cross-border trade has become a national benchmark: online gaming now represents around 12% of the local gross domestic product and generates more than 1,200 direct jobs, as highlighted by President Juan Vivas during his visit to the new offices of operator LeoVegas.
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An economic model that replaces cross-border trade
For years, Ceuta’s economy depended significantly on trade with Morocco. This scheme, considered vulnerable and informal, began to be replaced by what Vivas calls a “green, blue and intelligent” model, based on sectors with higher added value: technology, knowledge and the digital economy.
The measures adopted in terms of taxation, vocational training and infrastructure have been the pillars of this transition. And the numbers support the direction taken.
The data that supports Ceuta’s leadership in the sector
According to a study by the municipal company Procesa, the turnover of online gaming companies established in Ceuta reached 7.5 billion euros last year, with a growth of 12% compared to the previous year. In terms of national market share, the city concentrates 44% of all online gaming licenses granted in Spain and 80% of the sector’s turnover at the state level, an extraordinary figure for a town of just 83,229 inhabitants.
Its contribution to local GDP was 155 million euros in 2023, equivalent to 8.2% of the total wealth generated in the territory.
Why companies choose Ceuta: the tax advantages that explain the phenomenon
The take-off of the sector is not only explained by the strategic vision of the local government. The tax advantages offered by Ceuta compared to the rest of Spain constitute a determining factor for the establishment of operators.
Among the main benefits are: the tax on profits in the gaming sector is 10%, compared to 20% in the rest of the country. Corporate Tax is reduced to 7.5% during the first two years and to 12.5% in subsequent years, well below the general rate. Companies also receive a 50% bonus on employer contributions to Social Security, 75% on wealth tax and 60% on personal income tax. Finally, services for online gaming operators, such as legal advice or data processing, are taxed at just 0.5% IPSI, in contrast to the 21% VAT applicable on the peninsula.
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The condition for accessing these benefits is that at least 50% of the workforce and labor costs are effectively located in Ceuta.
The impact on employment and vocational training
The sector already generated 1,038 direct jobs in the city by the end of 2024, a figure that represents approximately 10% of the local labor market. Faced with youth unemployment exceeding 60%, online gaming has become one of the main career opportunities for young people from Ceuta. The local government provides specific training courses for the sector, with the aim of ensuring that the demand for technological and customer service profiles can be met with local talent.
Melilla follows the same path, albeit at a distance
The Ceuta model has not gone unnoticed by its sister city. Melilla, also an autonomous Spanish city in North Africa, has adopted a similar strategy and already concentrates 17% of online gaming licenses in Spain, positioning itself as the third national hub behind Ceuta and Madrid. According to local president Juan José Imbroda, between direct and indirect jobs, the sector has generated 1,049 jobs in a city of 85,811 inhabitants.
Vivas’ three messages to sustain the model
At the conclusion of his visit to LeoVegas, President Vivas condensed the challenges Ceuta faces to consolidate its achievements into three main points: that companies feel heard and comfortable to continue growing in the city; that institutional unity and social dialogue be maintained to avoid conflicts that could discourage investments; and that the government conveys optimism and confidence as a basis for continuing the process of economic transformation.
Ceuta’s journey in less than a decade, from an economy dependent on informal trade to becoming the Spanish capital of online gaming, is today a case study on how fiscal policy and strategic planning can redefine the productive profile of a territory.
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