Operated by Sicilian immigrant barbers-turned-bootleggers Sam and Rosario Maceo, the Balinese Room was an elite spot in the 1940s and 1950s (Galveston's open era), featuring entertainment by Frank Sinatra, Bob Hope, George Burns, The Marx Brothers and other top acts of the day.
Another common origin tale begins the cocktail’s history at the legendary Balinese Room in Galveston, Texas where, in 1948, head bartender Santos Cruz created the Margarita for singer Peggy (Margaret) Lee.
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Still even during the later years the Balinese Room was able to attract the likes of Tony Bennett and Peggy Lee, among others.