Princess Caroline (1793-1879), spouse of Prince Florestan I (1785-1856), was the first to come up with the idea of a casino in Monaco. Revenues from the proposed venture were supposed to save the House of Grimaldi from bankruptcy. The ruling family’s persistent financial problems became especially acute after the loss of tax revenue from two breakaway towns, Menton and Roquebrune, which declared independence from Monaco in 1848 and refused to pay taxes.
The establishment moved several times until they settled in an area names Les Spelugues. Construction started there in 1858 and finished in 1863.
Princess Caroline recruited Francois Blanc, who was the manager of the Bad Homburg casino in Germany. Blanc insisted on changing the name of the casino area, Spelugues, to something simpler and more appealing to casino visitors. The name was changed to Monte Carlo to honor Prince Charles.