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 on olive oil and fruit imposed by the Grimaldis.

Revenues from the proposed venture were supposed to save the House of Grimaldi from bankruptcy. The idea of opening a gambling casino in Monaco originated with Princess Caroline, the shrewd, business-minded spouse of Prince Florestan. The idea that the casino was intended only for foreigners was even emphasized in the name of the company that was formed to operate the gambling business, the Société des Bains de Mer et du Cercle des Etrangers (English: Company of Sea Baths and of the Circle of Foreigners). The rule banning all Monegasques from gambling or working at the casino was an initiative of Princess Caroline, the de facto regent of Monaco, who amended the rules on moral grounds. The citizens of Monaco are forbidden to enter the gaming rooms of the casino. The company also owns the principal hotels, sports clubs, foodservice establishments, and nightclubs throughout the Principality. The Casino de Monte-Carlo is owned and operated by the Société des Bains de Mer (SBM), a public company in which the government of Monaco and the ruling princely family have a majority interest. It includes a casino, the Opéra de Monte-Carlo, and the office of Les Ballets de Monte-Carlo.

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