Tariffs Impact Canadian Gaming

The growing U.S.-Canada trade dispute has begun to affect the gaming industry, with Alberta suspending the purchase of all American-based game terminals.

The directive, issued March 6 by the Alberta Gaming Liquor and Cannabis Commission (AGLC), calls for slot machines, video lottery terminals and other gaming machines to be acquired from companies that have support services in Alberta or countries with whom Canada has a free trade agreement.

The move follows recent action by U.S. President Donald Trump to implement a 25% tariff on Canadian goods coming into the U.S. Trump has said the tariffs, which have sparked fears of a North American trade war, will go a long way toward boosting American manufacturing when they go into effect next month. Canadian Prime Minister at the time, Justin Trudeau, responded by saying there was “no justification” for the tariffs. Canada has since announced plans to impose retaliatory tariffs.

Alberta, one of Canada’s top gaming markets, accounts for roughly 4% of total sales for gaming equipment suppliers. Across Canada, close to 15,000 video lottery terminals and slot machines were sold in 2023, representing 16% of the total sales in North America.

The AGLC’s latest directive is shaping up to have major implications on U.S. gaming companies, especially those in Las Vegas, who stand to lose millions of dollars in sales while the suspension is in place. In response, these equipment suppliers are actively looking for new ways to keep the money flowing.

Southern California research firm Eilers & Krejcik recently noted that 83% of gaming equipment sales in Canada come from three different manufacturers: International Game Technology (IGT), Light & Wonder, and Aristocrat Gaming. Should other Canadian provinces announce similar measures, it would further impact gaming companies throughout the U.S.

Daron Dorsey, executive director of the Association of Gaming Equipment Manufacturers (AGEM), told the Nevada Independent that “gaming suppliers will manage and adjust to this new normal as best they can.” Because the market is less competitive north of the border, Canada may not feel the same impact as the U.S., at least in the short term.