By Cláudia Ascensão Nunes

At a time when gambling is increasingly treated by governments as a vice to be regulated or restricted, it is worth recalling a curious episode in European economic history: a casino once saved a country. In the 19th century, Monaco went from being a virtually bankrupt state to the playground of millionaires that we know today.

In the 19th century, the Principality of Monaco lost the territories of Menton and Roquebrune, which were annexed by France in 1861. With this territorial loss, the small principality was left with almost no tax base, since much of its revenue had come from taxes on agricultural production, particularly olive oil and fruit.

It was in this context of near bankruptcy that the Monegasque government made an unexpected decision: to bet on gambling.

The idea was to create a luxury casino capable of attracting the European elite and generating new revenue. Across much of continental Europe, gambling was prohibited or heavily restricted, which made Monaco a particularly attractive destination for aristocrats and wealthy visitors seeking entertainment.

The casino proved so successful that it allowed investments in infrastructure such as hotels, roads, and railway connections, gradually transforming Monaco into an increasingly luxurious destination.

By 1869, casino revenues had grown so large that Prince Charles III abolished all direct taxes for Monegasque........

© Eurasia Review