The online gambling sector has grown into an important economically sustaining engine for both Malta and Gibraltar in terms of employment, national GDP output, and tax receipts. These territories have become some of the most prominent online gaming hubs, and their economies earn tremendously more from this booming industry.
Employment Impact
Gibraltar and Malta based casinos are a major source of employment. According to the latest estimates, the industry directly employs around 6,500 people in Malta, with full-time equivalent indirect jobs rising to some 9,800 when accounting for ancillary services and support roles. The workforce increase was phenomenal, 52%, between 2015 and 2018, as the sector continued to expand and new gaming operators flocked to acquire a license from the Malta Gaming Authority (MGA).
The same goes for Gibraltar, where the online gambling sector has also created thousands of jobs. Many gaming firms exist in the region, creating employment for locals. These firms provide direct employment and drive demand for local services, creating additional jobs in indirect sectors such as retail and hospitality.
Contribution to GDP
The online gambling industry is a substantial contributor to the GDP of both Gibraltar and Malta. This accounts for about 13% of Malta’s national economy, equating to around €700 million annually. This figure underscores the role of online gaming as a pillar of economic activity in this country. After all, it is one of the largest sectors after tourism.
Similarly, Gibraltar’s online gambling operations are having a decidedly positive effect on the territory’s economy, although the specific contribution to GDP seems less frequently published. Nevertheless, the sector’s importance for Gibraltar’s economic well-being and growth is widely acknowledged.
Tax Revenues
Another important element of the economic impact of online gambling relates to tax revenues. Malta has an appealing regulatory framework with competitive tax rates on gaming revenues, with tax rates strategically lowered to further attract operators. For example, gaming tax revenue has steadily risen—22%—from 2015 to 2018. This uninterrupted income growth through tax is crucial for operating public services and creating infrastructure projects in the country.
The Gibraltar government also earns considerable revenue through the taxation of online gambling firms. Because of its favourable tax environment, the jurisdiction has attracted many larger operators. That has led to billions being added to Gibraltar’s public finances to help keep the lights on and keep things running in terms of essential community services and projects.
Conclusion
Online casinos generate profound and multifaceted economic contributions in Malta and Gibraltar. They create high-paid jobs, contribute massive amounts to GDP, and provide the necessary tax revenues to help fund a sizable part of public services. With both regions continuing to navigate an evolving regulatory environment and market landscape, their dedication to developing a strong online gambling market will likely remain an important part of their economic plans. As the global online gambling market continues to expand—tipped to reach $97.15 billion by 2024—Malta and Gibraltar seem set to make the most of growth prospects that will keep their economies resilient and competitive internationally.
