The Alberta Gaming & Liquor Commission (AGLC) has suspended the purchase of US gaming terminals as Donald Trump’s trade war with Canada transcends into the gaming industry.
First reported by Eilers & Krejick Gaming, the commission has slammed the brakes on the acquisition of both slots and video lottery terminals (VLTs).
A directive from the AGLC issued on 6 March stated that it would only purchase gaming equipment from companies that have support services in Alberta or countries that “share a free trade agreement with Canada”.
In retaliation to US tariffs, Canada has placed a 25% import charge on 1256 items, including two gambling-related products.
Eilers estimates that Alberta purchased approximately 4,000 VLTs annually from the US, representing 4% of US and Canada sales for major manufacturers.
Other provinces, including Saskatchewan and British Columbia, have issued similar orders to source goods from non-US suppliers.
Last year, sales of slots in Canada numbered 15,000, accounting for 16% of total US and Canada sales.
Relations between the US and Canada have soured since Donald Trump’s re-election to the White House.
As well as levy tariffs against Canadian imports, he has repeatedly stated that Canada could join the US as its ‘51st state’ – a sentiment that has angered many Canadians.
Yesterday (11 March), Trump briefly threatened to double tariffs on Canadian steel and aluminium to 50% before Ontario rowed back on a plan to charge 25% more for electricity it supplies to American homes and businesses.
Canada’s incoming prime minister, Mark Carney, has said he will keep other tariffs in place until Americans “show respect” and commit to free trade.
Trump trade war goes beyond Canada
The knock-on effect of the US’ extensive global tariffs may also be felt by the nation’s gaming industry outside of Canada as, in a bid to kickstart US domestic production, a 25% tariff on steel and aluminium is now in effect worldwide.
In response, the European Union has promised to impose counter-measures on €26bn worth of US goods.
As a result, US-based slot makers such as IGT, Light & Wonder and Aristocrat could see exports to mainland Europe halted in the face of EU-mandated tariffs.
