SOURCE: Excerpts from Reuters

(Brussels, BEL) — The European Commission took new steps on Wednesday to prise open sports betting markets in France, Sweden and Greece as part of a quarterly crackdown on EU rule breakers.

"While important improvements have been made in recent years, too many member states persistently infringe Community law. That is why we are determined to act," Commission President Jose Manuel Barroso said in a statement.

The curbs on gambling competition in France and Sweden have not been shown to be necessary, proportionate and non-discriminatory, the Commission said in its final warning before the cases move to the European Court of Justice.

The court can fine and force states to change their laws.

"Furthermore, in the Commission's view, existing national operators cannot be regarded as non-profit organisations, given that they are subject to strict annual revenue targets and often rely on commercial retail outlets to market their various gambling services," the EU executive said.

Brussels gave Greece two months to respond to a "letter of formal notice", the first step in the EU's infringement procedure against countries that break the bloc's laws.

The Commission also reminded Greece of its obligation to lift a total ban on gaming machines, including computer games.

Sports betting and gambling is a state-owned monopoly in many EU countries, generating large amounts of revenues for government coffers but thwarting attempts by private-sector rivals to get a piece of the multi-billion-euro business.

New French President Nicolas Sarkozy is seeking to downplay the importance of competition as a strategic objective in the 27-nation EU, saying he wants to help create more "European champions".

Wide Differences

Swedish Prime Minister Fredrik Reinfeldt said on Tuesday that gambling in Sweden would be reformed.

EU Internal Market Commissioner Charlie McCreevy told Reuters on Tuesday that it would be impossible to draw up EU-wide rules on gaming, given the wide differences in attitudes between EU countries towards the sector.

The gambling industry welcomed the move, with the European Gaming and Betting Association saying it was a decisive step to end national protectionism.

"We hope that the Commission will continue in their efforts to force these countries to act in accordance with the EU treaty and EU jurisprudence," British sports betting firm Stanleybet International (SLY.L: Quote, Profile, Research) said.

Internet gambling firm Unibet's (UNIBsdb.ST: Quote, Profile, Research) Swedish Chief Executive Petter Nylander said in a statement the EU decision was "an important step" on the road to a modern gambling market.