Why Do Monaco Laws Forbid Locals from Gambling?

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Monaco laws forbid locals from setting foot inside the luxurious casinos in the microstate such as Casino de Monte Carlo and Monte Carlo Bay Casino although the popular gambling destinations of Monaco attract thousands of tourists every year.

Monaco is the state of luxury, elegance, extravagance, fun and of course gambling. The tiny city-state is located on the French Riviera. It is mostly known for hosting the most famous street circuit of the Formula 1 calendar, Circuit de Monaco. Formula 1 fans know Monaco very well mainly through the image of the beautiful azure blue sea full of luxurious yachts docked at the marina which is adjacent to the street circuit.

Circuit de Monaco (Image source: WTT)

There is another face of this beautiful country which attracts multi-millionaire tourists to Monaco. The micro-state comprises of merely 2 km² and 38000 people. It is very small; but, its gambling income is quite huge. Monaco is an independent state; therefore, Monaco gambling laws do not have to conform to the ones in France. That is how such world-famous casinos as Casino de Monte Carlo could flourish in Monaco. (Here is a list of the best casinos in Monaco)

Casinos in Monaco constitute a gambling paradise for many Europeans. However, there is a bizarre point in Monaco Laws which forbid the locals from gambling related activities within the boundaries of the city-state. Let alone gambling in the big casinos, the Monegasques cannot event set a foot inside of a casino unless they work there. But why is it the case?

There is no Consensus to Explain the Real Motives of Monaco Laws

There are different interpretations regarding the root causes of the gambling prohibition for the citizens of Monaco. The working dynamics of the micro-state are based on money. Monaco is like a Mercedes AMG with a fuel tank which can be filled only with cash. Therefore, gambling is vital for the state. Well, then wouldn’t it be better to let the locals gamble as well so that the state could increase the tax revenue? It would be a case if Monaco wasn’t a tax haven. Yes, you heard it right, Monaco is a tax haven which is perfect for the citizens as they are not burdened with an income tax. Whatever the Monegasque Robert earns, stays with the Monegasque Robert. Hallelujah for that.

It also means that the government doesn’t tax the gambling income, or not as much as in many European countries. It is better to let the foreigners gamble and increase the cash intake. The local can still enjoy an almost tax-free life style despite the fact that they cannot gamble in the shiny casinos of their own country.

Historical Reasons of Why Monaco Laws Keep Locals Away from Casinos

Keeping the foreign currency intake high to render the economy nourishing continuously can be the main motivation behind the foreigner-only policy of the casinos in Monaco. However, it is better take a walk in history to find out the root causes of why Monaco citizens can’t gamble in Monaco.

The ruling family of Monaco, the House of Grimaldi faced bankruptcy in the middle of the 19^th Century. It was a terrible period for the royal court of Monaco, indeed. Nevertheless, Princess Caroline woke up with a shining light bulb in her brain one day. The idea was shining bright like a diamond.  And that idea was opening a casino in Monaco.

Princess Caroline’s endeavors to convince Francois Blanc’s to move his famous Bad Homburg Casino to Monaco from Germany proved to be fruitful eventually. She had to struggle a lot to convince the casino magnate; but, eventually she reached her aim. Blanc accepted to take over the casino business of Monaco. That is how today’s world-famous gambling destination Casino de Monte Carlo came into being.

Image Credit: media.mnn

Princess Caroline Laws Still Relevant Today: Profit Comes from Tourists, not Locals

Yes, we still haven’t answered the essential questions: Why can’t Monegasques gamble in Monaco? The answer lies behind the foundational routes of the gambling industry of Monaco. The creator of the idea of having a casino in Monaco also banned the locals from gambling due to moral reasons. Yes, Princess Caroline didn’t want the locals to gamble away their money as the state needed every single Monegasque Franc that they could save. The main goal was attracting gambling enthusiast foreigners.

Monaco Gambling Laws haven’t changed much since then as the Monaco casino industry serves solely the foreigners. There are passport checks at the casino entrances. Only non-Monegasques over 18 can enter the casinos in Monaco.

Good thing is that Monaco laws don’t mention online gambling. Therefore, Monaco citizens can gamble online freely. There are rumors that the Monegasque government plans to acquire the French online gambling which would restrict the online gambling activities in the state pretty much. However, for now the citizens can enjoy online gambling as much as they can.

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