Alberta, Canada, has taken a bold step in response to the growing trade tensions with the United States.
The Alberta Gaming Liquor and Cannabis Commission (AGLC) announced a ban on buying slot machines and video lottery terminals (VLTs) from any U.S.-based suppliers.
According to the directive from the AGLC, the purchase of all gaming terminals from U.S.-based suppliers has been suspended.
“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.
Last week, the White House announced a 25% tariff on all goods imported from Canada but postponed its implementation until April just a few days later. The Government of Ontario has joined the fight by implementing a 25% increase on electricity exports to the U.S.
Why Alberta Banned U.S. Gaming Equipment
The AGLC's new directive is a direct response to tariffs imposed by the U.S. and could have big financial consequences for U.S. gaming companies, especially those based in Las Vegas.
It came after the U.S. decided to impose a 25% tariff on all goods imported from Canada. Although the White House plans to delay this tariff policy until April, Alberta’s government acted quickly to protect its interests.
By prioritizing gaming equipment from suppliers with local support services or from countries with a free trade agreement with Canada, Alberta aims to safeguard its gaming industry from unpredictable trade policies.
Impacts on the Gaming Industry
This sudden change has stirred concern among gaming manufacturers in the United States. Companies in Las Vegas could potentially lose millions of dollars in sales.
In an article for The Nevada Independent, Phil Bernard, an analyst at the Southern California research firm Eilers & Krejcik Gaming, noted that Alberta's directive is a clear response to U.S. tariffs. He also suggested that other Canadian provinces might adopt similar measures, potentially hurting slot vendor sales in the near future.
Daron Dorsey, executive director of the Association of Gaming Equipment Manufacturers (AGEM), expressed the industry's need to adapt to this "new normal." With Alberta's new policy, gaming companies like Aristocrat Gaming, which makes the popular Dollar Storm slot machine, are now facing the challenge of adjusting their market strategies to accommodate these trade restrictions.
Suppliers Looking for Ways to Weather the Storm
Alberta usually purchases about 4,000 gaming machines each year, with these slot machines and VLTs significantly boosting the province's revenue.
Across Canada, the purchase of 15,000 new slot machines accounted for 16% of the total gaming equipment spending in both Canada and the United States.
In response to Alberta's new directive, gaming equipment suppliers are actively looking for ways to cut their financial losses.
The situation underscores the importance of flexibility in international trade, as companies adapt to evolving policies amid heightened trade tensions.
