"The U.S. has so far opted for compensation to make right what is wrong. I don't think compensation does that job," he told members of the European Parliament on Tuesday.
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Billions of euros were wiped off the market value of European online gaming companies when the United States closed off its market last year.
"What we really need is for the legislation to be put right and for foreign operators to stop being excluded and discriminated against in the way the present U.S. legislation does," Mandelson said.