The Alberta government has implemented a ban on purchasing slot machines and video lottery terminals (VLTs) from U.S.-based suppliers, marking a significant escalation in trade tensions between Canada and the United States. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued the directive on March 6, 2025, immediately halting the acquisition of U.S.-manufactured gaming equipment.
According to the directive, Alberta will now prioritize sourcing gaming terminals from companies that either have operational support within the province or are based in countries with a free trade agreement 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 stated.
This decision follows the White House’s recent announcement of a 25% tariff on Canadian imports. While the tariff’s enforcement has been postponed until April, Alberta moved swiftly to counteract the policy, mirroring Ontario’s decision to increase electricity export prices to the U.S. by 25% in response.
Impact on Gaming Manufacturers and U.S. Suppliers
The ban is expected to significantly affect U.S. gaming equipment manufacturers, particularly those based in Las Vegas, a hub for industry giants such as International Game Technology (IGT), Light & Wonder, Aristocrat Gaming, and Konami Gaming.
Analyst Phil Bernard of Eilers & Krejcik Gaming noted that the directive is a direct response to U.S. trade policies and suggested that other Canadian provinces, including British Columbia and Ontario, may follow suit, potentially increasing financial losses for American gaming suppliers.
Alberta is a major market for gaming equipment, purchasing approximately 4,000 new slot machines and VLTs annually. Across Canada, around 15,000 machines were sold in 2023, representing 16% of total slot machine and VLT sales in North America. If additional provinces adopt similar measures, the financial consequences for U.S. manufacturers could grow significantly.
Daron Dorsey, executive director of the Association of Gaming Equipment Manufacturers (AGEM), acknowledged the industry’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 hosting some of Canada’s largest casinos, Alberta is a crucial market for gaming suppliers. The AGLC’s 2024 annual report detailed that 14,400 slot machines in Alberta casinos generated CAD 1.3 billion in revenue, while the province’s 6,000 lottery terminals contributed an additional CAD 557 million.
Eilers & Krejcik research indicates that 83% of gaming equipment sales in Canada come from IGT, Light & Wonder, and Aristocrat Gaming, underscoring the heavy reliance of U.S. manufacturers on the Canadian market.
Despite concerns, some gaming companies may seek alternative manufacturing locations outside the U.S. to navigate the trade restrictions. IGT spokesperson Phil O’Shaughnessy highlighted the company’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 government has previously restricted other U.S. imports, including liquor, as part of its response to evolving trade policies. With tensions continuing to rise, some analysts speculate that these restrictions could remain in place until Canada and the U.S. reach a new trade agreement.
As the situation unfolds, gaming manufacturers, policymakers, and casino operators will need to adjust their strategies to cope with the shifting economic landscape. Whether other Canadian provinces adopt similar policies remains to be seen, but Alberta’s move has already sent ripples through the industry.
Source:
Alberta Halts US Gaming Equipment Imports Amid Trade Dispute, March 11, 2025.