EU executive battles France over gaming - lobby

BRUSSELS, March 3 (Reuters) - The European Commission has given France until the end of this month to change a planned law that would oblige banks to block payments on behalf of online betting firms, a gaming lobby said on Monday.

The European Gaming and Betting Association said the draft law would apply even to online gaming operators fully licensed and regulated elsewhere in the European Union.

The Commission issued its warning in the form of a detailed opinion laying out why the French draft law breaks EU rules on the free movement of services, and gave until March 31 for the law to be changed.

Malta, an EU state where some online gaming firms are registered, also put its name to the detailed opinion.

"Today's action consolidates the Commission's position that unjustified payment blocking in our sector clearly contravenes EU law," Sigrid Ligne, EGBA secretary general, said in a statement.

Sports betting in France is run by state-backed Francaise des Jeux and PMU.

"If France then decides to adopt the text despite the Commission warnings, the Commission can immediately launch infringement proceedings," the EGBA said.

It is not the first clash between Brussels and Paris.

The Commission and French government officials are to meet this week in a bid to avoid EU Internal Market Commissioner Charlie McCreevy taking France to the EU's top court for restricting gaming firms from elsewhere in the EU.

France has signalled it is willing to introduce a "controlled opening" in its sector.

In recent weeks McCreevy has stepped up legal action against Germany, the Netherlands and Greece in a bid to inject more competition in sports betting markets where national monopolies typically dominate, generating revenue for government coffers. (Reporting by Huw Jones; Editing by Dale Hudson)