The Gambling Review Body will decide whether to approve betting in pubs in a formal report to the Home Office on June 29.
The independent body has spent almost two years considering submissions from interested sectors including the pub trade.
Trade associations including the Brewers and Licensed Retailers Association are asking ministers to relax gambling laws to allow pubs to host betting on events like horse racing.
Under current legislation, customers must place their bets at a betting shop.
Under proposed changes to the laws, pubs could install web booths for betting or even a betting shop franchise.
This is likely to be restricted to pubs which are over-18s only or can accommodate a separate area for gambling.
Betting shop chains including Ladbrokes have argued against the move on the grounds that pubs are not a regulated enough environment.
Reaction among licensees has been mixed, with many welcoming the opportunity to boost sales but others concerned that a relaxation of the gambling laws could lead to betting shops being allowed to serve alcohol.
The Home Office is likely to publish its proposals later this year.