In a bold response to heightened trade tensions with the United States, the Canadian province of Alberta has implemented a ban on the import of gaming equipment from US manufacturers. This decision, driven by US tariffs, marks a significant shift in the procurement policies of one of Canada’s leading gaming provinces and casts uncertainty on the future sales of major gaming manufacturers.

Last week, the Alberta Gaming Liquor and Cannabis Commission (AGLC) issued a directive halting the purchase of slot machines and video lottery terminals (VLTs) from US-based companies. This move came shortly after the US imposed a 25% tariff on all goods imported from Canada, a policy delayed until April by the White House. The AGLC stated it would now prioritize vendors with support services within Alberta or in countries holding a free trade agreement with Canada.

Industry Impact and Reactions

The gaming industry, particularly companies based in Las Vegas, is bracing for significant financial impacts. Eilers & Krejcik Gaming, a research firm, highlighted the potential ripple effects across other Canadian provinces, which could adopt similar restrictions. Daron Dorsey, executive director of the Association of Gaming Equipment Manufacturers (AGEM), cited by The Nevada Independent, expressed concern over the new policies, noting that the industry must adapt to this “new normal.”

In reaction to Alberta‘s directive, suppliers are exploring ways to mitigate losses. Phil O’Shaughnessy, a spokesperson for International Game Technology (IGT), emphasized their robust presence in Canada, with operations capable of producing VLT content locally. Other major manufacturers, like Light & Wonder and Aristocrat Gaming, might face challenges adjusting their strategies due to their significant market shares in Canada.

Economic Significance

Alberta’s decision is not just a standalone event but a bellwether for potential trends in the Canadian gaming market. The province accounts for about 4% of the total North American sales by major manufacturers, with annual purchases of approximately 4,000 gaming units. The broader implications for the US-Canada trade relations and the gaming industry are substantial, suggesting a cautious outlook for US suppliers in the Canadian market.

The gaming sector’s future will heavily depend on the diplomatic negotiations between the US and Canada. Industry analysts, like those at Eilers & Krejcik Gaming, speculate that the current trade standoff could persist until a new bilateral agreement is reached. Meanwhile, gaming provinces across Canada will likely keep a close watch on Alberta’s lead, potentially shaping a new landscape for the North American gaming equipment market. This situation underscores the interconnected nature of international trade and industry, highlighting how policy decisions in one arena can produce ripple effects through many others.