UPDATE 2-EU to decide on several gambling legal actions

(Adds French, Swedish, Stanley International reaction, McCreevy)

By Huw Jones

BRUSSELS, June 26 (Reuters) - The European Commission will decide on Wednesday whether to take legal action against France, Sweden and Greece for restricting competition in their gambling markets, the European Union executive body said on Tuesday.

"There will be some decisions made probably tomorrow by the college (of commissioners) on a number of member states," Oliver Drewes, a spokesman for the European Union's executive arm, told a regular briefing.

"This concerns France, Greece and Sweden for the moment. Those are the decisions on the calendar for tomorrow," Drewes said.

Sports betting and gambling is a state-owned monopoly in many EU states, generating large amounts of revenue for government coffers.

Reuters reported last week, and EU sources confirmed on Tuesday that the Commission would issue a final warning to France and Sweden and an initial warning to Greece for restricting competition in their gambling markets.

If no changes are made, the European Court of Justice has powers to force states to alter their laws.

EU Internal Market Commissioner Charlie McCreevy told Reuters that EU-wide rules specifically to open up gambling markets would not muster enough support among the bloc's members, some of which have moral objections.

"I am not going down that road," he said in an interview.

It is unacceptable that some gambling operators have advertised for new customers while at the same time saying that gambling must not be encouraged as an excuse to bar competitors, he said.

SWEDISH REFORM

For the Commission to say to governments "see you in court" rather than try to negotiate is also unsatisfactory, he added.

"We would like a dialogue with all of the member states to reach a proportionate compromise, but some states have not entered into a dialogue with us at all," McCreevy said.

Swedish Prime Minister Fredrik Reinfeldt said on Tuesday the domestic sector would be reformed but it could take time.