The directive issued by the Alberta Gaming Liquor and Cannabis Commission (AGLC) on March 6 immediately caused a stir in the gaming equipment sector. The government said it will only purchase gaming equipment from companies with support services in the province or with countries that “share a free trade agreement with Canada.” According to the directive from the AGLC, the purchase of all gaming terminals from U.S.-based suppliers was suspended on March 6. 

“AGLC will prioritize procurement on companies that have support services in Alberta, Canada, or with countries that we share a free trade agreement with,” the directive stated.

The White House announced a 25 percent tariff on all goods coming into the United States from Canada last week, but a few days later delayed the implementation until April.

The decision by Alberta — one of Canada’s top three gaming provinces — led to the immediate concern that the other major gaming provinces of British Columbia and Ontario would enact similar bans. All gaming in Canada is government sponsored, differing from the U.S. model in which casinos are either privately operated or owned by corporations. Lotteries in the U.S. are state operated.

“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, negatively impacting slot vendor sales in the near term,” Phil Bernard, an analyst with Southern California-based research firm Eilers & Krejcik Gaming, wrote in research note on Friday.

Daron Dorsey, executive director of the Las Vegas-based Association of Gaming Equipment Manufacturers (AGEM), said in an email Sunday that the organization is evaluating how to navigate the trade directive. He’s planned meetings with AGEM members this week.

“These policy decisions and responses affect many industries beyond gaming for both the near and longer term,” Dorsey said. “Our gaming suppliers will manage and adjust to this new normal as best they can.”

Eilers & Krejcik estimated Alberta, which has casinos in Edmonton and Calgary as well as a provincial lottery, accounts for roughly 4 percent of all sales by the major manufacturers, including International Game Technology (IGT), Light & Wonder, Aristocrat Gaming and Konami Gaming.

Bernard predicted that Alberta and other Canadian provinces can hold off from purchasing new games for an extended period because the market is less competitive than the U.S.

“We believe this policy is likely to remain in place until the U.S. and Canada are able to reach a new trade agreement,” he wrote in the research note.

In an email, IGT spokesman Phil O'Shaughnessy said the company “has a large presence in Canada, with more than 400 employees in local Canadian offices. We produce Canadian VLT content in Canada, and our VLT cabinets can be manufactured in locations outside of the U.S.”

Representatives from other manufacturers declined comment. 

Eilers & Krejcik estimated the total sales of slot machines and VLTs throughout Canada last year was roughly 15,000 devices, representing 16 percent of all combined U.S. and Canadian sales. Alberta purchases an estimated 4,000 slot machines and lottery terminals annually, Bernard wrote.

According to the AGLC’s 2024 annual report, more than 14,400 slot machines in casinos accounted for $1.3 billion Canadian dollars in revenue. Lottery revenue was $557 million in Canadian dollars from more than 6,000 terminals.

Eilers & Krejcik estimated the total sales of slot machines and VLTs throughout Canada last year was roughly 15,000 machines, representing 16 percent of all combined U.S. and Canadian annual sales. The firm said IGT, Light & Wonder and Aristocrat account for 83 percent of the total sales to Canada.

Bernard wrote there is confusion around the directive as to whether it applies to the manufacturers whose corporate headquarters are outside the U.S., such as IGT, which is based in Rome, and Aristocrat, which is headquartered in Australia.

Lynden McBeth, a spokesperson for the AGLC — which also suspended the import and sale of U.S. liquor into the province last week — said in an email that “Intergovernmental relations and agreements, including Alberta’s response to the U.S. tariffs, are the responsibility of the Alberta government,” and deferred direct questions to the province’s Service Alberta and Red Tape Reduction. A spokesperson did not respond for comment.