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March 26, 2025

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us-tariffs

U.S. Tariffs Impact Canada’s Gaming Sector

The ongoing trade dispute between the U.S. and Canada is now impacting the gaming sector, with Alberta officially suspending purchases of all U.S.-based gaming terminals—including slot machines and video lottery terminals (VLTs)—from American suppliers starting March 6, 2025. This decision marks a significant shift in the province’s gaming industry, forcing operators to seek alternative suppliers.

According to the Alberta Gaming, Liquor and Cannabis Commission (AGLC), future procurement will prioritize companies that have support services in Alberta, Canada, or in countries with which Canada has a free trade agreement. This move comes in response to escalating trade tensions, including the U.S. government’s imposition of a 25% tariff on Canadian goods. In retaliation, Canada has introduced its own tariffs, including a 25% duty on up to $20 billion worth of American imports.

With Alberta being one of Canada’s largest gaming markets, these trade restrictions are expected to have a significant impact on gaming equipment providers. American suppliers, especially those based in Las Vegas, now face the potential loss of millions of dollars in revenue. As a result, these companies are scrambling to find ways to maintain their market presence, whether by adjusting pricing strategies, exploring new markets, or forming partnerships outside of Alberta.

As the trade dispute continues, the long-term effects on the gaming industry remain uncertain. While some Canadian operators may turn to domestic and international suppliers, the transition could lead to delays in upgrading gaming infrastructure. The industry must now navigate this shifting landscape, adapting to new regulations and supply chain challenges while ensuring continued growth and innovation.

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