France is preparing to bow to pressure from Brussels and agree to a partial liberalisation of its state-run betting monopolies. In a sign that it is backing away from a confrontation with the European Commission, Paris has said that it is willing to legalise internet gambling on horse racing and football. The move would give companies such as Sportingbet, the London-listed online bookmaker, a toehold in the EUR 25 billion (GBP 17.4 billion) annual Gallic gambling market.

The European Commission will set itself on collision course with France, Sweden and Greece today when it orders them to end lucrative state-run sports betting monopolies. Paris and Stockholm will be given a final chance to change their legislation or face court action, while Athens will receive an initial warning. Sweden has hinted at a willingness to compromise with Brussels, but the French say that they will defend state gambling operators against competition from the internet.