France, Italy and Austria will this week be formally censured by the European Commission for restrictive laws on gambling, the latest move in the fierce global battle between governments and private sports betting and gambling companies.

The intervention will come as a rare glimmer of hope for an industry seriously damaged by a series of regulatory blows, and from the high-profile arrest of senior executives on both sides of the Atlantic. In Europe, gambling operators have long complained of the obstacles they face when trying to enter markets outside their home state - normally a fundamental right for businesses in the EU.