top of page
Writer's pictureGuest Contributor
Jun 106 min read

How the Principality of Monaco Became the European Casino Capital: A Unique Story

by Marry Marvel

Monaco is a tiny country of 2,000 square kilometers in the south of Europe with a population of approximately 38,000 people.

That is, fewer people live here than, for example, in Myrhorod, Lubny, or Pervomaisk. But Monaco, unlike European provincial towns, is known all over the world. Gambling has played an important role in this. The local Monte Carlo district became the gambling capital of Europe long before the first casinos appeared in Las Vegas and Macau.


THE FIRST CASINOS IN MONACO AND THE RAPID FURTHER DEVELOPMENT OF GAMBLING

Earlier, we mentioned the first casino in Europe—Ridotto, which started operating in Venice back in 1638. It was a kind of experiment that proved gambling establishments could bring a lot of money to the state if they were controlled. However, at that time, casinos had not yet become a mass phenomenon in European countries.


The history of Monaco's development as a gambling center is usually considered to date back to the mid-19th century. At that time, the principality was headed by the Grimaldi dynasty, which had been on the verge of bankruptcy for a long time. However, it was then that Prince Charles III of the Grimaldi dynasty made a truly fateful decision to legalize gambling and open the Villa Bellevue gambling house in the Condamine quarter.


On December 14, 1856, Villa Bellevue opened its doors to the first guests. Although the casino attracted a lot of attention, it did not become very popular, mainly because of the poorly developed surrounding infrastructure. Nevertheless, the first step in the right direction was taken, and Charles III understood that gambling could save his dynasty from total bankruptcy. However, he did not know how to develop this area further.


The situation was complicated by the fact that gambling was still illegal in most Western European countries, making it virtually impossible to borrow someone else's successful experience, with few exceptions. At this point, Charles III learned about François Blanc, a businessman, developer, gambling organizer, and inventor of European roulette. The Blanc brothers had laid the foundation for the first successful casinos in Bad Homburg, Germany.


In 1863, Charles III made another fateful decision—to invite François Blanc to Monaco to help develop the local gambling business. At the same time, the German authorities were becoming less and less supportive of gambling. Additionally, in Bad Homburg, player activity was highly seasonal. That's why Blanc agreed to move to the warm country of Monaco, where he practically received carte blanche from the Prince.


From then on, François Blanc became the face of the gambling business in Monaco. Charles III granted him a concession (a temporary operation agreement) for his own casino, obliging him to pay 10% of the profits to the principality's treasury every year. For Blanc, these were excellent conditions, because apart from paying interest, he was given maximum freedom—and he took advantage of it.


THE BEGINNING OF THE TRIUMPHANT DEVELOPMENT OF MONACO, THE EMERGENCE OF MONTE CARLO

Charles III had initially made a mistake by opening a casino without presenting it effectively or creating the necessary infrastructure. François Blanc, with his considerable experience, acted much more deliberately. He started from scratch.


The entrepreneur found the perfect place for a casino: an area on a hill called Spélugues, which was home to a small number of peasants. With enough money, Blanc began to develop the area, building the casino headquarters, roads, gardens, and a whole complex of buildings for players and employees. In July 1866, the construction was completed, and Monte Carlo Casino opened its doors to its first visitors. Charles III himself was delighted with Blanc's creation and even decided to rename the hill Monte Carlo ("Mount Charles").


As we look at the historical significance of casinos, it's fascinating to see how the industry has evolved. Today, online casinos offer convenience and accessibility that land-based establishments like Monte Carlo could only dream of in the 19th century. For example, modern players can take advantage of promotions such as the Richard Casino no deposit bonus, allowing them to enjoy games and potentially win real money without an initial deposit. This kind of innovation keeps the spirit of early casino entrepreneurship alive in the digital age.


MONTE CARLO CASINO

It was a real success. During the first year, gambling revenues in Monte Carlo reached 800 thousand francs, and in three years, more than two million. The reason was not only the developed infrastructure. François Blanc made gambling truly accessible to the public, setting up open gaming tables where people with low incomes could play. Roulette and blackjack allowed for relatively small bets, which attracted even more players. The profits grew so much that Charles III was able to abolish taxation in the principality in 1896.


In 1870, the Franco-Prussian War broke out, playing an important role in the establishment of Monaco (or, more precisely, the Monte Carlo region) as a gambling center in Europe. The conflict did not actually affect the lands of Monaco, but it did considerable damage to Germany and suspended the development of gambling in the country for some time. In 1872, Chancellor Otto von Bismarck banned all gambling houses in Germany. Until 1907, Monte Carlo became a monopolist in the field of gambling.


Unfortunately, François Blanc never witnessed the formation of the monopoly of his own creation. He died on July 27, 1877, in Switzerland, where he was undergoing treatment. He was 70 years old, and his fortune at that time was more than 72 million francs. Today, the entrepreneur is known as the "Wizard of Monte Carlo."


THE EMERGENCE OF MONACO AS A MODERN EUROPEAN CASINO CAPITAL

In the 20th century, the situation for the principality became quite unstable. In fact, this was true for the whole of Western Europe. The gambling business continued to develop, but the world wars, especially the Second World War, had an extremely negative impact on its progress. Nevertheless, casinos mostly operated, albeit with significantly lower profits.


The local gambling industry got a real "second wind" after the Second World War. The Casino de Monte Carlo became a meeting place for celebrities, aristocrats, and even spies. Later, it was repeatedly featured in literature, pop culture, and cinema, notably in James Bond films like "Never Say Never Again" and "Thunderball."


In the second half of the 20th century, Monaco became one of the wealthiest places in the world, thanks to casino revenues, which constituted the majority of the principality's budget. New gambling establishments appeared, the budget was replenished, and tourism, sports, culture, and other areas rapidly developed in Monaco.


Today, Monte Carlo remains the main gambling center of Monaco and Europe in general. The largest casino complexes in the principality include:

  • Casino de Monte Carlo

  • Casino Le Café de Paris

  • Monte Carlo Bay Casino


It is quite significant that the Casino de Monte Carlo, which initiated Monaco's heyday as a gambling center, is still operating and welcoming visitors. Unlike the Ridotto (Casinò di Venezia) mentioned at the beginning, it is a truly full-fledged and popular gambling establishment. Nevertheless, even Monaco is facing problems.

Related articles: Women in Poker


A DARK SPOT IN THE BRILLIANT HISTORY OF MONACO

It would seem that the gambling industry in Monaco had survived even during the world wars. What could have hit it harder? But it did happen. It was the COVID-19 pandemic. Already in the first quarter of 2020, the Casino de Monte Carlo reported a 74% decrease in revenues. While in 2019, the casino's revenues amounted to €176 million, in 2020 they dropped to €45.1 million.


The situation in other gambling venues was no less critical. Overall, gaming revenues in all Monte Carlo casinos decreased by 84.5% in 2020. Given that gambling and tourism are the backbone of Monaco's economy, this was an extremely serious blow to the entire country.


Unfortunately, the country is still feeling the reverberations of COVID-19. The pandemic was one of the main reasons for the closure of Sun Casino, which was once called the "Las Vegas of Monaco." However, it simply could not withstand the drop in profits and became unprofitable.


Another serious challenge for the gambling industry in Monaco is online casinos, which are attracting more and more audiences every year. The coronavirus pandemic has only accelerated this process. Online gambling establishments are more accessible and convenient, as there is no need to travel or fly anywhere, book a hotel, etc. Although no smartphone game can compare to a visit to a real world-class casino, online gambling is becoming an increasingly serious threat to the land-based gambling business in Monaco and, indeed, the entire modern world.

bottom of page