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For all of the changes that have occurred since 1866, Monte Carlo is still—first and foremost—the epicenter of casino gambling in Europe. It is often compared to Las Vegas, but with far more history and sophistication and much less neon glitz and promotional hoopla.

Monaco’s Prince Florestan I (1785~1856) deserves credit for legalizing gambling in the Principality in 1954, but it was Prince Charles III who ordered the construction of Monte Carlo. He then announced the availability of a 50-year concession to operate the gaming rooms inside a bold new gambling emporium—the Casino de Monte-Carlo—which would be the hub of this new district.

The winner of the contract was François Blanc, the French inventor of the single-zero roulette wheel layout and manager of luxury casinos in Germany since 1843. He purchased the concession for nearly two million francs, and it turned out to be the perfect partnership.

The entrepreneur persuaded the French government to build a new coastal road to Monte Carlo and extend the railway from Nice. He did so by providing financing for the two projects—five million francs at low interest. He then set up a private company, Société des Bains de Mer et du Cercle des Etrangers Monaco—forerunner of today’s SBM—to sell shares in the casino operation and quickly recover his investment.

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Exactly nine months and four days after the wedding, Princess Caroline was born. She was followed by her brother, Prince Albert II, in 1958 and her sister, Princess Stéphanie, in 1965. Monaco’s line of succession was firmly secured.

With her film career curtailed by marriage and motherhood, Princess Grace devoted herself to charity work, founding AMADE Mondiale in 1963. It was created as a Monte Carlo-based non-profit organization that promotes and protects the “moral and physical integrity (and) spiritual well-being of children throughout the world.” Today, it helps youth in more than a dozen countries through humanitarian aid programmes.

Another focus of Princess Grace’s charitable activities was improving the arts institutions of Monaco. Over time, she established the Princess Grace Foundation to support local artisans. Later, she created a Garden Club as a reflection of her love of flowers. She was among the first celebrities to support La Leche League and its advocacy of breastfeeding. And each year, she organised a Christmas party for local orphans.

Princess Grace counted among her friends innumerable government and business leaders, sports figures, and celebrities. Among them was Josephine Baker, an American-born black entertainer of French citizenship whom she befriended in 1951. When Baker fell on hard times in her later years, the princess and her husband set her up in a French villa and then joined Jacqueline Kennedy Onassis in financing “Joséphine à Bobino 1975”—a retrospective revue in Paris to celebrate Baker’s 50 years in show business.

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Grace Patricia Kelly was an American actress who would go on to become the Princess of Monaco. She was born in Philadelphia in 1929 and embarked upon her career in theatre on the stages of New York at the age of eighteen. Her first major film role was in the 1952 Western drama “High Noon” with Gary Cooper and Lloyd Bridges.

Kelly’s big break came in 1953, when she landed a role next to Clark Gable and Ava Gardner in John Ford’s African safari movie, “Mogambo.” It won the young actress a Golden Globe and an Academy Award nomination for Best Supporting Actress that year.

Her performance also caught the eye of British director Sir Alfred Hitchcock. She starred in his next three masterworks: “Dial M for Murder” with Ray Milland, “Rear Window” with James Stewart, and “To Catch a Thief,” which featured Cary Grant as her leading man. Within one quick year, Grace Kelly became a bona fide Hollywood star.

It was during the filming of “To Catch a Thief” in the summer of 1954 that Kelly first saw the palatial gardens of the Grimaldi estate. In one scene, she speeds away from the local police along the Moyen Corniche, a coastal road overlooking the Côte d’Azur. She joins Grant high above the Riviera at a picnic ground overlooking Monte Carlo—a venue as impressive in the film as it is in person.

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So now it is clear that Monte Carlo is not Monaco, and Monaco is not Monte Carlo, no matter how inextricably their fortunes may be linked. In fact, when Prince Rainer III took the throne in 1949, one of his primary objectives was to wean Monaco from its complete dependence on Monte Carlo gaming revenues.

At that time, the gambling industry accounted for 95 percent of the country’s gross domestic product (GDP). Today, it contributes only about three or four percent, demonstrating just how successful the monarch’s diversification programme was. By the time of the Prince’s death in 2005, the principality’s GDP was estimated to be more than €1,180 million, according to a BBC report. Another source puts as much as five percent of the GDP now coming from rubber, plastics, and chemicals industries based on new green technologies.

Does all this subdivision and de-emphasis on gambling mean that Monte Carlo is dying? Not by a long shot. In fact, the district’s gaming revenue continues to grow, even as Monaco diversifies its economy by attracting other businesses.

For example, Monte Carlo-based Société des Bains de Mer Monaco (SBM) is still the single largest employer in the principality. It specializes in the operation of casinos and hotels, earning 52.7 percent of its net sales from gaming operations, including traditional table games and newer automatic games. In 2009, the group controlled five casinos in Monaco: Casino du Café de Paris, Sun Casino, Casino d’Eté (aka Summer Casino), Monte Carlo Bay Casino, and the original Casino de Monte-Carlo.

The company gains another 40.6 percent of its income from the hotel sector, providing lodging services, catering, and beach and spa activities mainly through four hotels—Hôtel de Paris, Hôtel Hermitage, Monte-Carlo Bay Hotel, and Monte-Carlo Beach Hotel. The remaining 6.7 percent of SBM’s sales comes from the leasing of local shops and office space.

Read More >> The Once and Always Monte Carlo

Monte Carlo is not at all what most people think it is. To begin with, it is not the capital of Monaco. In fact, it is not even a town. Nor is it an ancient place, either. No Monte Carlo Grand Prix has ever been held on its streets, and contrary to the suggestive lyrics of a once popular song, no one ever sent the Casino de Monte-Carlo into bankruptcy.

That said, Monte Carlo is a fascinating destination and one of the gems of the Mediterranean’s Riviera coast. It plays a prominent role in European culture and serves as a playground not only for the rich and famous but also as home to a diverse range of people and businesses. In fact, a large percentage of its residents are entrepreneurs.

Although Monte Carlo may not be all that it has been made out to be, in many ways it is much more. Once you move beyond the myths and mystique of Monte Carlo, you can begin to discover its true allure.

Read More >> Monte Carlo – Moving Beyond the Mystique