A directive issued by Alberta’s Gaming, Liquor and Cannabis Commission (AGLC) bans the purchase of slot machines and video lottery terminals (VLTs) from US-based suppliers.
According to a Nevada Independent (NI) report, the action, a response to a Donald Trump-led trade war, could cost US gaming manufacturers millions in sales. Trump’s tariffs could also affect US border casinos.
Last week, the Trump White House instituted a 25% tariff on all goods from Canada before deciding to delay implementation until April.
Despite the walk-back, Alberta responded by restricting purchases to companies with local support or countries with free trade agreements.
The March 6 directive states:
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 move reportedly created a stir among US-based equipment manufacturers and suppliers. Nevada’s slot industry is concerned that other Canadian provinces—like Ontario and British Columbia—may follow suit.
In an email to the NI, the Association of Gaming Equipment Manufacturers (AGEM) executive director Daron Dorsey said the organization is evaluating how to comply.
These policy decisions and responses affect many industries beyond gaming for both the near and longer term. Our gaming suppliers will manage and adjust to this new normal as best they can.
Alberta accounts for 4% of all North American sales
In a research note, Phil Bernard, an analyst from Eilers & Krejcik Gaming (EKG), said Alberta’s new policy is a clear tariff response. However, he added that there’s confusion around whether the directive applies to manufacturers with headquarters outside the US.
EKG estimates that Alberta accounts for roughly 4% of North American sales by the top gaming manufacturers. Those companies include Rome-based International Game Technology (IGT), Light & Wonder (LNW), Konami Gaming, and Australia-based Aristocrat Gaming.
According to EKG, 2024’s total Canadian slot machine and VLT sales amount to roughly 15,000 devices or 16% of all North American sales. Alberta’s aforementioned 4% equals approximately 4,000 machines. E&K said IGT, LNW, and Aristocrat account for 83% of Canadian sales.
As Bernard noted, Canadian provinces could hold off from purchasing for an extended period due to our less competitive market.
Clearly this directive is in response to the U.S. administration’s tariff policy and we believe other Canadian provinces are likely to follow Alberta, negatively impacting slot vendor sales in the near term.
We believe this policy is likely to remain in place until the U.S. and Canada are able to reach a new trade agreement.
Although other manufacturers declined to comment, IGT spokesman Phil O’Shaughnessy told the Independent in an email the company “has a large presence in Canada.”
However, he added, the relationship is not US-dependent.
We produce Canadian VLT content in Canada, and our VLT cabinets can be manufactured in locations outside of the U.S.
That presence could—seemingly—insulate the manufacturer from tariff-related harm.
Alberta gaming terminals add nearly $2B in revenue
AGLC’s 2024 annual report detailed that more than 14,400 casino-based slot machines generated $1.3 billion in revenue. Meanwhile, over 6,000 terminals brought in $557 million in lottery revenue.
Since the tariff announcement, AGLC also suspended US liquor imports and sales.
In an email, AGLC spokesperson Lynden McBeth deferred the Independent’s questions to the Department of Service Alberta and Red Tape Reduction (SARTR).
Intergovernmental relations and agreements, including Alberta’s response to the U.S. tariffs, are the responsibility of the Alberta government.
A spokesperson for SARTR did not respond to requests for comment.
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