Trade War Tension: Alberta's Ban on US Gaming Equipment
Alberta Prohibits Imports of American Gambling Equipment amid Trade Dispute; Predictions Suggest other Regions may Enact Similar Policies
In the midst of an escalating trade war with various nations, including the US, Canada has chosen to push back with a 25% tariff on $30 billion worth of goods imported from the US, starting March 4th. Canada's stance? They'll keep these tariffs in place until the US removes its own tariffs on Canadian goods.
Recently, Alberta has taken a step further by banning gaming equipment imported from the US. On a Thursday announcement from the Alberta Gaming Liquor and Cannabis Commission, they stated that they would only purchase gaming equipment from countries that share a free trade agreement with Canada.
It's worth noting that, in Canada, all casinos and online gaming offerings are controlled by the government. PlayAlberta is the single regulated online gambling site in the province, while retail casinos like the Grey Eagle Resort and Casino are common.
This move by Alberta has raised concerns, particularly in Nevada, with fears that other provinces may follow suit. According to Phil Bernard, an analyst with Eilers & Krejcik Gaming, other provinces are likely to follow Alberta's lead, negatively impacting slot vendor sales in the near term.
Alberta accounts for approximately 4% of sales for major US gaming manufacturers like Light & Wonder and Aristocrat Gaming. The province purchases around 4,000 slot machines and lottery terminals every year.
Trade War Implications
Alberta's decision to prohibit US gaming equipment imports is one strategic response to the mounting trade frictions between Canada and the US. This action impacts US gaming manufacturers, limits their market access, and potentially opens opportunities for Canadian or other international gaming equipment manufacturers.
The trade tensions also escalate between the two countries, potentially leading to more retaliatory measures and further complicating trade relations. The broader economic impacts of these trade disputes may extend beyond the gaming industry, influencing trade and economic stability in both countries.
In summary, Alberta's ban on US gaming equipment imports highlights the growing complexities and volatility in the US-Canada trade environment. As the trade battle continues, both countries need to assess their strategic options carefully to minimize losses and maintain a competitive edge in the global market.
- The recent ban on US gaming equipment in Alberta is likely to be followed by other provinces, according to Phil Bernard, an analyst with Eilers & Krejcik Gaming, potentially impacting slot vendor sales in the near term.
- Approximately 4% of sales for major US gaming manufacturers like Light & Wonder and Aristocrat Gaming come from Alberta, which purchases around 4,000 slot machines and lottery terminals annually.
- Alberta's decision to prohibit US gaming equipment imports is one strategic response to the mounting trade frictions between Canada and the US, limiting market access for US gaming manufacturers and potentially opening opportunities for Canadian or other international gaming equipment manufacturers.
- In the midst of an escalating trade war, Canada has imposed a 25% tariff on $30 billion worth of goods imported from the US, citing the need for the US to remove its own tariffs on Canadian goods before these tariffs are lifted.
- The trade tensions between Canada and the US are not limited to the gaming industry; they could lead to further retaliatory measures and complicate trade relations, potentially influencing trade and economic stability in both countries.
