Some countries rely mainly on one or two industries to keep their economy going. Greece for instance is heavily reliant on tourism and olive oil exports. Tourism is also vital to the economy of Spain and the Canary Islands. Saudi Arabia has petrol. Japan has technology.

When it comes to Gibraltar, the answer might be a bit more surprising. The small territory is doing well thanks to online gambling. Not because the local residents spend their time playing online and winning jackpot at the casino but because many online gaming operators have set up off shore operations in Gibraltar. They don’t spend their time gambling online and playing casino games, they write software or ensure the smooth running of the online games.

If you look at unemployment figures over the Spanish border, you will notice that unemployment there has been quite high since 2008. But in Gibraltar, the figures show almost full employment for the local population. The UK tax haven has a strong economy and it’s mainly because of online gambling. The small territory is like a mini Las Vegas, without the strip and the fancy lights.

Many online gambling operators have set up their operations in Gibraltar to benefit from the gaming licensing system and the tax system. By doing so, the rock has hit the jackpot and created full employment for the residents when the Spanish neighbour is struggling with the downturn. The gaming industry also contributed to over €12m (£10m) in online gambling taxes to the economy of Gibraltar in 2010. The industry employs 2,000 people, the equivalent to 12% of the workforce.

Up to now, online gaming giants have paid 1% tax with a ceiling of €500,000 a year.  Now Gibraltar is planning to change the business tax for all gaming companies in order to conform with European law, and they will have to face a uniform 10% corporation tax.

Because of the high levels of unemployment in Spain, and the lack of any other major industries,  it is very important to keep the jobs in Gibraltar. But although this is a sharp rise, companies will still not pay any VAT, which means the tax regime will still be attractive and the gaming companies are expected keep their headquarters in Gibraltar.