European online gambling companies saw billions of euros wiped of their market values last year following Washington's decision to close off its market.
"The US has so far opted for compensation to make right what is wrong. I do not think that compensation does that job," Mandelson told the European Parliament.
"What we really need is for the legislation to be put right and for foreign operators to stop being excluded and discriminated against in this way."
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iTnews Executive Retreat - Security Leaders Edition
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