As the current on-again-off-again threat of US tariffs on Canadian products continues, the Government of Canada has moved ahead with its first phase of retaliatory tariff measures, which include 25% tariffs on electronic gaming machines and playing cards. Several provinces have added additional measures. All have removed US alcohol from liquor stores and restricted US companies from bidding on provincial contracts, or in Quebec’s case, added a 25% penalty for US bidders. Additionally, two provinces have banned the purchase of gaming machines from US suppliers.
The Alberta Gaming, Liquor and Cannabis Commission (AGLC) announced that it will suspend the purchase of both slot machines and VLTs from US-based manufacturers starting March 6. The regulator said it would “prioritize procurement on companies that have support services in Alberta, Canada, or with countries that we share a free trade agreement with.” AGLC added that the purchase of ancillary support products such as machine parts and the existing lease network “will continue at this time.”
According to figures reported by EKG, Alberta, which has casinos located throughout the province in addition to a lottery offering, accounts for approximately 4,000 machines annually or roughly 4% of all sales. However, should other provinces join Alberta in banning any new sales, that would account for approximately 15,000 units or approximately 16% of total US and Canada sales.
In Saskatchewan, Lotteries and Gaming Saskatchewan has been instructed to source the $43 million worth of VLT and slot machines, due for an upgrade this year, from suppliers other than those in the US.
While British Columbia, Manitoba, Ontario, Quebec, and the Atlantic Provinces are encouraging residents and businesses to purchase Canadian products, they have not explicitly prohibited the procurement of gaming equipment from US suppliers.