• Sun. Mar 16th, 2025

Alberta Bans U.S. Gaming Machines in Response to Trade Tariffs

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Mar 16, 2025



In response to escalating trade tensions with the U.S., Alberta’s government has banned the import of slot machines and video lottery terminals (VLTs) from American companies.The decision, announced by the Alberta Gaming, Liquor and Cannabis Commission (AGLC) on March 6, is a reaction to the Trump administration’s planned 25% tariff on Canadian goods, but the consequences could be significant.Major suppliers such as International Game Technology (IGT), Light & Wonder, Aristocrat Gaming, and Konami Gaming now face a serious roadblock, with millions in potential sales on the line. Alberta typically buys around 4,000 new slot machines and VLTs each year, and last year, Canada accounted for 16% of total gaming equipment sales in North America.In the 2023-2024 fiscal year, the Alberta Gaming, Liquor, and Cannabis Commission (AGLC) generated close to $2 billion in gambling revenue, with slot machines contributing about 46% of total sales, amounting to $920 million. Given how much revenue slot machines generate, Alberta now faces the challenge of maintaining supply without relying on American manufacturers.Meanwhile, with all this uncertainty, many players are turning to the best online casinos, since they make it easier to play the same popular slot games while offering way better rewards. Keeping slot lovers animated has become a real challenge for brick-and-mortar casinos, especially with payout rates as low as 85-90%.However, with lower operational costs, online platforms can afford to offer much higher RTPs—often above 96%—along with thousands of slots featuring different themes, exciting bonus rounds, and huge progressive jackpots. The flexibility of these platforms is on another level, offering a more private and convenient option—especially as regulatory changes raise serious concerns about the future of land-based casinos in Canada.Indeed, Alberta’s decision has prompted many discussions among industry experts about whether British Columbia and Ontario will follow the same path and completely change how slots and VLTs are supplied across the country.Beyond the impact on gaming equipment manufacturers, Alberta’s move is fueling already hot political tensions. It’s a direct response to U.S. trade policies, but it could lead to further retaliation. Some industry insiders warn that rather than solving the issue, this decision might escalate trade disputes between Canadian and American gaming companies.At the same time, Alberta’s gaming sector is undergoing bigger changes. The province recently announced cuts to gambling addiction support and disability advocacy programs, a move that’s raising eyebrows.Critics argue this is all part of a larger effort to shift toward privatized casino operations, which could reshape the market even further in the coming years.If this happens, it could change the cash flow, how gambling revenues are distributed, and which stakeholders benefit the most. Industry groups such as the Association of Gaming Equipment Manufacturers (AGEM) were first to voice their concerns, with executive director Daron Dorsey warning that this decision could hurt many manufacturers as they find themselves scrambling to adapt to the shifting trade environment.Some suppliers, facing all those challenges, are considering increasing domestic production to meet compliance requirements, while others are looking at alternative partnerships to maintain their presence in the growing slots market. This shift in supplier strategy, however, doesn’t come without consequences for casino operators.If the ban continues, forcing suppliers to shift their strategies, casinos will likely have to extend the lifespan of their existing machines, resulting in casino floors remaining filled with outdated equipment for far longer than intended. That won’t just disappoint players; outdated machines bring higher maintenance costs and limit a casino’s ability to attract fancy players who expect top gaming experiences.For now, the industry remains in limbo as authorities decide whether to uphold the ban or introduce exemptions. Either way, Asian manufacturers are ready to strengthen their presence in Canada’s gaming market, with the region’s casino equipment industry projected to reach over $6 billion by 2030.



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