Newly elected President Trump and his tariff war have affected even Canada’s gambling operations. Due to the imposed taxes on the country, the Alberta Gaming & Liquor Commission has decided to suspend the purchases of video lottery terminals from the U.S.
AGLC is one of Canada’s state-run lotteries. The Crown corporation is responsible for running regulated gambling in the Province of Alberta. This includes PlayAlberta, the province’s only legal iGaming platform. AGLC’s mission is to conduct responsible gambling, while reinvesting its revenue into the local economy.
Trump's Tariff War Impacts Alberta Too
In addition to shaking up the global economy, Trump’s tariffs have also affected the gambling industry in Alberta. After the news of imposing taxes on Canada, AGLC has decided to put on hold its purchases of VLTs from the U.S.
Still, already leased products from the commission will remain in exploitation, and it should not have an impact on the casino management system provider maintenance income.
It was recently reported that the Alberta gambling regulator has stopped all purchases of new machines from its southern neighbour. The decision comes after President Trump announced that he will be putting 25% import changes on 1,256 items.
Among those 1,256 items there are two that are closely connected to the gambling industry. Under entries 9504.30.00 and 9504.40.00, these gambling-related items are subject to taxes:
- Playing Cards
- Other games, played with coins, banknotes, bank cards, tokens, or any other payment methods
At first glance, it doesn’t look like AGLC’s decision would affect the market that much. However, Alberta alone accounts for 4% of all sales in the U.S. and Canada. Meanwhile, Canada’s spending on 15,000 slot machines represents approximately 16% of the total spending between the neighbouring countries.
Currently, Alberta imports around 4,000 machines every year, and its decision to stop purchases from the U.S. may have an impact on its income. This could be the case if other Canadian lotteries decide to follow the example of Alberta.
Alberta May Set an Example
Similar to the U.S., the Canadian federal government has given each province rights to oversee their gambling operations. Each of the provinces has the right to respond to the tariffs differently, similar to what they have done to U.S. alcohol.
Additionally, Trump’s tariffs may affect other jurisdictions and their gambling activities. Europe has not seen any tariffs from the president yet. However, Trump has been accused of regional unfairness and alleged exploitation.
If European countries suffer such tariffs, US-based slot manufacturers like International Gaming Technology could see their orders from EU operators put on hold. Trump’s tariffs are projected to have a negative impact on the electronic business in the coming months, it remains to be seen how much they will affect the gambling sector.
At the same time, Alberta’s decision will most likely remain unchanged until the U.S. and Canada can negotiate a new trade agreement.
Alberta Develops its Own iGaming Model
While the U.S. and Canada are working on finding a new trade agreement, the gambling industry awaits the launch of Alberta’s iGaming market. The province is looking to kick off an online gambling model similar to the one seen in Ontario. It would allow for private operators to join the province’s regulated iGaming space.
Initially on course to launch at the end of 2024, Alberta’s market should start sometime in 2025. Its delay was due to measures to review the regulatory framework and possibly improve it before roll out. This would also include input from industry representatives.
The objective of the regulated sector for online casino and sports betting is to license third-party operators. Thus, stopping a portion of the offshore betting sites on which many locals play on. This way, the province can provide a safe and regulated iGaming space for consumers while keeping the revenue within its borders.
AGLC Will Not Be in Charge
However, despite expectations, AGLC will not be overseeing the new market. Instead, the oversight of the regulatory model will be vested in the Justice Minister. With this call, the province is looking to have a more streamlined space, which would attract private operators who otherwise would have been hesitant to work under AGLC’s direction.
Under this model of work, participants will have a better control over their data, since they will not be sharing it with AGLC or PlayAlberta.
In the meantime, leaders from the gambling industry are looking forward to the launch of the market. For instance, BetMGM has previously shared its intention of joining the Alberta sector in 2025. Additionally, CEO of PointsBet, Sam Swanell, has predicted that the iGaming market will be up and running by September 2025. This would be a good time, as the NFL season starts then.
Still, no official confirmation has been given by Alberta on the exact launch. However, one thing is clear, the province is ready to transform its iGaming model.
