Alberta Bans US Slot and VLT Purchases Amid Trade Tensions

Last week, the government of Alberta, Canada, took a major step in response to the escalating trade tensions with the U.S. by banning the purchase of slot machines and video lottery terminals (VLTs) from American suppliers. 

This move, which could potentially cost major Las Vegas-based gaming manufacturers millions, was announced by the Alberta Gaming Liquor and Cannabis Commission (AGLC) on March 6.

The AGLC’s decision, as expected, sparked a lot of controversy and caused concern within the gaming equipment sector since it would only allow the province to purchase gaming gear from suppliers with domestic support services or from countries that share a free trade agreement with Canada.

The suspension, effective immediately, comes as a result of the U.S. administration slapping Canadian goods with a 25% tariff – a measure that has, however, been delayed until April. 

Other Provinces Expected to Follow Suit 

Alberta’s bold move raised questions about whether other major gaming provinces, like British Columbia and Ontario, would follow suit. 

Unlike the U.S. model, where casinos are privately operated, gaming in Canada is government-sponsored, with provincial lotteries playing a significant role.

Phil Bernard, an analyst with Eilers & Krejcik Gaming in Southern California, noted that Alberta’s decision was a direct response to U.S. tariffs and that other provinces were likely to adopt similar policies. 

This would lead to a negative impact on slot machine vendor sales in the near term. 

“Clearly this directive is in response to the U.S. administration’s tariff policy and we believe other Canadian provinces are likely to follow Alberta,” Bernard wrote.

Alberta Buys Roughly 4,000 Gaming Machines a Year 

Eilers & Krejcik estimates that Alberta accounts for around 4% of sales by major manufacturers like International Game Technology (IGT), Light & Wonder, Aristocrat Gaming, and Konami Gaming. 

Bernard indicated that Alberta, with less competition than the U.S., might be able to delay new equipment purchases for an extended period.

Daron Dorsey, the executive director of the Las Vegas-based Association of Gaming Equipment Manufacturers (AGEM), acknowledged the challenge posed by this new trade directive. 

“These policy decisions and responses affect many industries beyond gaming for both the near and longer term,” he stated, adding that AGEM members were strategizing on how to adapt.

Phil O’Shaughnessy, a spokesman for IGT, emphasized that the company has a strong presence in Canada, with over 400 employees and VLT content and cabinets produced locally or outside the U.S. 

The sales figures are significant, with Eilers & Krejcik estimating that 15,000 slot machines and VLTs were sold in Canada last year, making up 16% of total sales in both the U.S. and Canada. 

Alberta typically purchases around 4,000 machines annually, with slot machines and VLTs generating significant revenue.

Last month, Alberta’s government announced its plans to cut more than $1 million in funding for gambling addiction support and disability advocacy non-profits while preparing the ground for the introduction of private operators in the province.