SOURCE: Reuters

(Brussels, Belgium) — France and the European Commission agreed on Tuesday to further talks in a bid to avoid the country being taken to the European Union's top court for restricting competition in sports betting.

France's Budget Minister Eric Woerth and European Affairs Minister Jean-Pierre Jouyet met the Commission's internal market chief, Charlie McCreevy, who has sent a final warning to France for banning private betting firms, with the next step the European Court of Justice.

The European Commission says the ban restricts the free movement of services within the 27-nation EU.

The parties to the dispute have agreed that there will also be political and technical talks to open up the market in France, which is dominated by state-controlled lottery Francaise des Jeux and horse betting firm PMU.

Further meetings will be held in February and March to find a solution to end the legal action before France takes over the EU presidency in June.

McCreevy's spokesman, Oliver Drewes, said the legal issues had not been resolved and that the legal action would continue.

"A process of intense dialogue will be started on technical and political issues, with the aim of meeting again in early February," Drewes said.

"We indicated to Mr McCreevy France was ready to gradually open up its gaming market," Woerth told reporters, reiterating comments by Jouyet last month.

The European Commission has launched preliminary legal action against France and nine other EU states over what it sees as restrictions on competition in gambling.

Woerth said any opening of the market would have to meet a list of French demands, including tax conditions and powers to combat money laundering and unlicensed online betting sites.

Brussels criticised France last month after Petter Nylander, chief executive of Swedish-listed online betting firm Unibet (UNIBsdb.ST: Quote, Profile , Research), was arrested in the Netherlands on French orders. He was released on bail last week.

"The French ministers also confirmed there will be no new kinds of complaints issued similar to the one that led to the arrest of Mr Nylander," Drewes said.

Francaise des Jeux and PMU had complained that Unibet breached 19th-century laws protecting state-owned monopolies.

Sigrid Ligne, secretary general of the European Gaming and Betting Association, said: "Negotiations have been taking place since June. Promises have been made, but no concrete solutions nor concessions have been made. All of this in the context of criminal procedures such as the Unibet one.

"We hope that talks of a controlled opening are real and that the Commission received serious guarantees from France and that today's discussion is not there to buy time once again."