Canada’s Alberta freezes U.S. slot machine orders over tariff dispute
The ongoing trade dispute between the United States and Canada has started to affect the casino industry, with Alberta’s gaming regulator pausing all purchases of American-made slot machines and video lottery terminals (VLTs).
The Alberta Gaming & Liquor Commission has halted its procurement of these machines in response to Canada’s retaliatory tariffs against the U.S. This major announcement came as the provincial government of Alberta a new set of tariffs on American products.
Prior to this, the Canadian government imposed a 25 percent import duty on 1,256 American products, which includes certain gambling-related items. Under 9504.30.00 and 9504.40.00, coin-operated games and playing cards are now subject to these additional charges.
A worrying impact on gaming industry
Alberta’s decision is significant as the province accounts for four percent of total slot machine sales across the United States and Canada. The country as a whole represents 16 percent of North American spending on such machines, purchasing approximately 15,000 units annually.
With Alberta alone bringing in 4,000 slot machines each year, the halt in purchases could have a notable financial impact on American manufacturers, who collectively generate billions in annual revenue from casino gaming equipment.
Alberta’s gaming market is a key buyer of American slot machines, contributing an estimated $ 300-400 million (€ 275-367 million) in revenue to U.S. casino product manufacturers. Major suppliers like International Gaming Technology and Scientific Games could see a significant dip in earnings if the purchase halt extends over time.
There is also the possibility that other Canadian provinces may follow Alberta’s lead. As with alcohol restrictions imposed on U.S. imports, different regions can independently decide how to enforce trade policies.
More to follow the suit?
If more Canadian provinces impose similar bans, it could severely impact American slot machine manufacturers, potentially cutting off hundreds of millions of dollars in cross-border sales.
Beyond Canada, Trump’s tariffs could also have consequences in Europe, where the U.S. president has recently criticized what he calls “unfair” trading conditions. If similar tariffs were imposed on European countries, leading U.S.-based slot machine producers such as International Gaming Technology and Bally Technologies could face additional losses in international markets.
While the trade war is already affecting other industries, including electronics, the full impact on the casino sector remains to be seen. However, with potential disruptions in multiple markets, manufacturers may soon feel the financial strain, which could lead to production slowdowns, or price increases in other regions to offset the lost revenue.
