The US should change internet gambling laws that stop European companies offering services in the US market, according to European Union trade official Peter Mandelson.

"What we need to see is a change in US legislation that removes that discrimination against EU operators," Mandelson told Reuters.

US Congress has passed a broad online gambling ban that prevents UK or European betting firms from trading in the US or accepting bets placed from US punters.

But the European Union wants compensation for businesses over the US's decision to remove gambling services from open market commitments.

The US and EU should also work together to press China to lower barriers to trade and investment, said Mandelson.