UK and Malta dig in heels over EU gaming initiative

By Huw Jones

BRUSSELS (Reuters) - Britain and Malta teamed up on Monday in a bid to head off moves by EU president France to forge a bloc-wide policy for regulating the multi-billion euro gambling industry.

France put forward a discussion paper to a meeting of the bloc's 27 industry ministers that said there were "already grounds for seeking a common approach."

In the past, gambling could be dealt with nationally, but the rise of cross-border online betting undermines this.

"The common challenges identified would appear to justify the development of a new EU-level approach," the document obtained by Reuters said.

EU Internal Market Commissioner Charlie McCreevy told the meeting he has not proposed common EU rules on gambling as no consensus existed among the bloc's states to adopt it.

That stalemate was much in evidence on Monday.

The issue is politically sensitive, as it touches on important tax revenues and traditions in many countries. Online gaming firms are battling many governments as they face barriers to operating freely in some countries.

The Czech Republic, which takes over the EU presidency on January 1 signalled it may continue with the debate, but avoided giving any clear commitment, diplomats said.