Gambling in Monaco
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Introduction: Gambling in Monaco

But as you can probably imagine, we’re interested in the casino aspect. And there’s an interesting fact in that no Monaco born person can enter a Monaco casino. Yes, they can gamble online. But just not in person. In reality, this law really applies to around 20% of the present population, as the other 80% is no Monaco born. So let’s have a look at the strange world of Monaco and gambling.

A Brief History of Monaco

Our Monaco gambling history really begins in the 13th century. At this point, it was a colony of Genoa, an Italian city-state. Eighty years later and the Grimaldi family take over, with Francisco Grimaldi becoming its ruler. With just a few interruptions, the Grimaldi’s have ruled Monaco up until the present day. But Monaco was unable to remain independent during all these years. At some point, it became a vessel of France. Then in 1814, it became a protectorate of the Kingdom of Sardinia. Forty-five years later and it was once more back in French hands. This is of importance because two of Monaco’s cities, Menton and Roquebrune want to escape the heavy burden of taxation laid down by the Grimaldi’s, and wished to be returned to Sardinia. Their wishes ultimately came to nothing and both cities were later incorporated in Monaco itself.

Gambling in Monaco
A bay in Monaco

The History of Gambling in Monaco

For the longest time, all gambling was forbidden in France. As early as 1840, the Grimaldi’s saw the potential to raise even greater taxes, if only they could have a functioning casino. In 1852 we see the ascent of Napoleon III, along with the Second French Empire, which grants the state permission to run gambling houses. One year later, the first casino opens and is an instant flop.

Because it lacks experience in the field of gambling, the government decides to auction a casino license and with a bid of 1.7 million Francs, the business goes to the brothers, Francois and Louis Black. Because they had a history of running early casinos and so bring an understanding of the industry to the table. They set about transforming an undesirable part of the city into something much more upmarket. They took a seaside area which bore the nickname of “Den of Thieves” and transformed it into a district which they rechristened, “Monte Carlo”.

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In 1858 they were able to open their first casino and it still stands to this day. At the same time, and with fortuitous timing, a newly opened railway was starting to bring gamblers from France. So successful was the business venture, that by 1869, the state of Monaco was able to stop collecting income tax, and in doing so, brought an end to the mini rebellion from the cities of Menton and Roquebrune.

In the end, all casinos in Monaco ended up in the hands of these two brothers. A company is formed with the Grimaldi’s taking a majority interest. This whole history really sets the stage for how odds gambling can be in Monaco.

Theories for Monaco’s Gambling Laws

No one really knows why Monaco has the rather strange gambling laws that it has. There is any number of theories, but nothing definitive. One of these is that the casino and tourism industries are enough to provide a healthy tax base without requiring individuals to contribute anything more. When you emigrate to the country, you’ll have to fill out a tax paper that creates a tax haven for you. Of course, this doesn’t apply to the citizens from across the border in France. When they come to play at the casino’s they still need to be paying taxes. One other thing is that the government can still impose high taxes on employment meaning that social security is still very high.

Some say that this the reason why the citizens are forbidden to enter casinos as this would prevent taxation. Because they already pay high social security, going to the casino would just be yet more taxation. It’s a pretty piss poor argument, but some swear by it. Another point of view suggests that gambling is not seen as a viable means by which a state should be supported. It’s not an efficient means of stimulating an economy. To that end, the ban on Monegasques from entering their own casinos is in place with the hope that they will spend their money to create wealth in other ways.

Preserving the Morality of Monaco’s Citizens

Then we come to the moral reason. Way back in the 1860s, casinos and gambling were considered downright immoral. The thinking goes that the Grimaldi were concerned that if their own citizens could enter the casinos then they would simply squander their money. To prevent them from doing so, would mean that there was money available for more wholesome things.

Will Monaco’s Laws Change?

There’s absolutely no reason as to why the Grimaldi’s will change anything. The tiny country is continuing to do very well for itself, thank you very much. Both tourism and gambling easily keep the country ticking along nicely. As an American might say, “If it ain’t broken then why to fix it?” In spite of this strange law, Monaco has no laws barring online real money gambling. This would be sending money out of the country, whereas allowing citizens to gamble at the casino would keep their money in the country. If there’s any rule that should be changed, then it should be this. Like we said….strange laws.

gambling in monaco
Monaco in the night – Photo via Good Free Photos

The Monaco and France Merger?

There has always been chatter about the possibility of Monaco rejoining France. Were that to come about, then the laws affecting gambling would need to change. France does have (some) laws on internet gambling, though there are no rules that forbid their own citizens from going to the casino. If the two countries were to merge, then it would be interesting to see exactly what laws the larger might impose on the smaller. Right now, Monaco is a tax-free offshore haven for the very rich and those who wish to hide their funds from taxation from their countries of origin. But for now, there are no changes on the cards as far as Monaco’s tax laws are concerned.

Conclusion: Gambling in Monaco

After looking into the strange gambling laws of Monaco, we are not really any better off in discovering a cause. Going back into history would normally reveal at least some pointers as to why it’s citizens are banned from their own casinos. Yet all the research we’ve done has revealed nothing. But, if we had to put our money on a reason, we would go with the moral one. The Grimaldi’s were the absolute rulers and so could impose both their will and morality on their subjects.

As a family of considerable European stature, they were probably concerned with the moral turpitude of the citizens of their tiny state. Thus laws were passed for almost personal reasons. This moral argument appears to make the most sense. Many rulers can’t help but try and impose their own moral views on others.

But let’s face it, the citizens of Monaco are not exactly hurting from this law. They have wonderful weather, beaches, and a big motor car race every year and of course, somehow they still have access to many of the online jackpot sites. So there’s certainly enough to do without also gambling in Monaco.

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