It is the Portuguese word for Flemish, and it was given to the nearby beach (Praia do Flamengo, Beach of the Flemish) because it was the place where the Dutch sailor Olivier van Noort tried to invade the city in 1599.
The ban, introduced in 1946, came from President Eurico Gaspar Dutra; a man heavily influenced by his wife, who was a devout Catholic, and thought poorly of games of chance.