The Alberta authorities has carried out a ban on buying slot machines and video lottery terminals (VLTs) from U.S.-based suppliers, marking a big escalation in commerce tensions between Canada and the United States. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued the directive on March 6, 2025, instantly halting the acquisition of U.S.-manufactured gaming gear.
According to the directive, Alberta will now prioritize sourcing gaming terminals from firms that both have operational help inside the province or are based mostly in nations with a free commerce settlement with Canada.
“AGLC will prioritize procurement on companies that have support services in Alberta, Canada, or with countries that we share a free trade agreement with,” the directive acknowledged.
This choice follows the White House’s current announcement of a 25% tariff on Canadian imports. While the tariff’s enforcement has been postponed till April, Alberta moved swiftly to counteract the coverage, mirroring Ontario’s choice to enhance electrical energy export costs to the U.S. by 25% in response.
Impact on Gaming Manufacturers and U.S. Suppliers
The ban is anticipated to considerably have an effect on U.S. gaming gear producers, significantly these based mostly in Las Vegas, a hub for trade giants comparable to International Game Technology (IGT), Light & Wonder, Aristocrat Gaming, and Konami Gaming.
Analyst Phil Bernard of Eilers & Krejcik Gaming famous that the directive is a direct response to U.S. commerce insurance policies and prompt that different Canadian provinces, together with British Columbia and Ontario, could observe swimsuit, probably growing monetary losses for American gaming suppliers.
Alberta is a significant marketplace for gaming gear, buying roughly 4,000 new slot machines and VLTs yearly. Across Canada, round 15,000 machines had been offered in 2023, representing 16% of complete slot machine and VLT gross sales in North America. If further provinces undertake related measures, the monetary penalties for U.S. producers may develop considerably.
Daron Dorsey, govt director of the Association of Gaming Equipment Manufacturers (AGEM), acknowledged the trade’s challenges, stating, “Our gaming suppliers will manage and adjust to this new normal as best they can.”
Alberta’s Gaming Industry and Future Implications
With Edmonton and Calgary internet hosting a few of Canada’s largest casinos, Alberta is a vital marketplace for gaming suppliers. The AGLC’s 2024 annual report detailed that 14,400 slot machines in Alberta casinos generated CAD 1.3 billion in income, whereas the province’s 6,000 lottery terminals contributed an extra CAD 557 million.
Eilers & Krejcik analysis signifies that 83% of gaming gear gross sales in Canada come from IGT, Light & Wonder, and Aristocrat Gaming, underscoring the heavy reliance of U.S. producers on the Canadian market.
Despite considerations, some gaming firms could search different manufacturing areas outdoors the U.S. to navigate the commerce restrictions. IGT spokesperson Phil O’Shaughnessy highlighted the corporate’s Canadian presence, stating, “We produce Canadian VLT content in Canada, and our VLT cabinets can be manufactured in locations outside of the U.S.”
A Sign of Broader Trade Challenges
The Alberta authorities has beforehand restricted different U.S. imports, together with liquor, as a part of its response to evolving commerce insurance policies. With tensions persevering with to rise, some analysts speculate that these restrictions may stay in place till Canada and the U.S. attain a brand new commerce settlement.
As the state of affairs unfolds, gaming producers, policymakers, and on line casino operators might want to regulate their methods to deal with the shifting financial panorama. Whether different Canadian provinces undertake related insurance policies stays to be seen, however Alberta’s transfer has already despatched ripples via the trade.
Source:
Alberta Halts US Gaming Equipment Imports Amid Trade Dispute, March 11, 2025.
