Canadian provinces rejecting US gaming equipment amid tariff war

Multiple provinces suspend purchases of American supplies

The tariff war between Canada and the U.S. is pervading Canadian gaming.

As part of retaliatory action amid President Donald Trump’s economic measures against Canada, including a since-delayed 25% tariff on all goods exported from Canada to the U.S., the government of Alberta has banned the purchase of slot machines and video lottery terminals (VLTs) from American-based suppliers.

Alberta Gaming Liquor and Cannabis (AGLC) issued a directive on March 6 stating that it would henceforth only purchase gaming equipment from companies that have support services in Alberta or countries that “share a free trade agreement with Canada.” It suspended the procurement of gaming terminals from U.S.-based suppliers that day.

“AGLC’s Gaming Division operations relative to the purchase of ancillary support products (ie. Slot Machine and VLT Parts) and our Lease network will continue at this time,” added the statement.

Canadian Gaming Business reached out to AGLC for further comment and was redirected to the Ministry of Service Alberta and Red Tape Reduction, which did not reply before the time of publication.

As reported by the Nevada Independent’s Howard Stutz, Eilers & Krejcik Gaming estimates that Alberta accounts for roughly 4% of all American and Canadian sales by major manufacturers of slots and VLTs. Overall,  Canada makes up 16% of the total.

Far from just Alberta; other provinces restricting US businesses

Meanwhile, in Saskatchewan, Premier Scott Moe has ordered Lotteries and Gaming Saskatchewan (LGS) to source VLT and slot machine upgrades from non-U.S. suppliers.

Some $43 million of VLT and slots currently procured from the U.S. are due to be upgraded this year. LGS told CGB that the agency is currently investigating supplier options but “at present, we do not expect that this will affect the operations or services that are delivered by LGS’s gaming operators.”

Further west in British Columbia, Premier David Eby confirmed that the government, including crown corporations such as the British Columbia Lottery Corporation (BCLC), “will be buying Canadian first, then non-U.S. products.”

CGB understands that the provincial Ministry of Finance sent a directive to BCLC, among many other crown corporations, as one part of its response. There is thought to be an exemption process in the eventuality that no non-American alternative for certain equipment can be sourced.

BCLC told CGB in a statement that it was directed that the directive it received includes new contracts for slot machines, as well as upgrades.

On the opposite coast, Nova Scotia Premier Tim Houston has prohibited American companies from bidding on provincial business, and the province is “actively seeking options to cancel existing contracts and reject bids outright.”

In Manitoba, Premier Wab Kinew introduced the Buy Canadian Act, which amends the Government Purchases Act to establish a buy Canadian policy across government and allow for preferential treatment to be given to a Canadian supplier when purchasing goods.

You might also like