Canada blocks purchase of US gaming machines and retaliates against Trump’s tariffs
Relations between Canada and the United States have become strained. The reason? Tariffs imposed by the US government that directly impact the Canadian economy. In response, some regions of Canada have decided to act, blocking the purchase of gaming machines manufactured in the US.
This decision directly affects the casino and lottery industry, as many of these machines were sourced from American suppliers. But why has Canada taken this action? And what could the consequences be? Keep reading to understand the context.
Context of trade tensions
In January 2025, just days after returning to the US presidency, Donald Trump announced his intention to impose 25% tariffs on imported products from Canada and Mexico. He justified the measure as a strategy to protect the American economy and address issues related to drug trafficking and illegal immigration. These tariffs cover a range of products, including gaming machines and lottery technologies, which are highly important sectors for several Canadian regions.
Response from British Columbia
In reaction to the tariff threats, British Columbia has adopted measures to reduce dependence on North American suppliers. On 4 March 2025, Premier David Eby instructed all Crown Corporations, including the British Columbia Lottery Corporation (BCLC), to exclude US suppliers from new procurements of goods and services. This includes new contracts for slot machines and aims to protect the local economy from the potential repercussions of American tariffs.
Matt Lee, a spokesperson for BCLC, confirmed that the organisation is aligned with the local government’s directives and will seek non-American alternatives for its supply needs. An exemption process has also been established for cases where viable alternatives outside the US do not exist. However, the primary goal is to use the region’s purchasing power to pressure the United States to reconsider its tariff policies.
Measures taken by Alberta
Similarly, Alberta has implemented restrictions on purchasing video lottery terminals (VLTs) and slot machines from the US. As of 6 March 2025, Alberta Gaming, Liquor and Cannabis (AGLC) announced that it would prioritise procurement from companies that provide support services within Alberta, Canada, or countries with which Canada has free trade agreements. This decision aims to reduce dependence on American suppliers and protect the region’s gambling industry from any instability resulting from US trade policies.
Impact on Canada’s gambling sector
The restrictions imposed by Canadian regions on the acquisition of gaming machines and lottery technologies from the US reflect an attempt to mitigate the impact of American tariffs on the gambling sector. Canada has a well-established gambling market, with local administrations playing a key role in regulating and operating these activities. For example, Ontario launched its regulated iGaming market in April 2022, allowing over 30 private companies to operate legally and generating $2.4 billion in gaming revenue last year.
The introduction of restrictions on importing US gaming machines may lead regional administrations to seek alternative suppliers or invest in developing domestic technologies, ensuring the continuity of operations and minimising the economic impact of the tariffs.
Reactions and future outlook
The measures adopted by different regions of Canada highlight the complexity of trade relations between the country and the United States, especially following Donald Trump’s return to the presidency. These steps also reflect efforts to reduce the economic impact of US tariffs on the Canadian economy. In addition to restrictions on gaming machines, other areas, such as Ontario, have taken retaliatory measures. For instance, Ontario suspended a 25% surcharge on energy exports to New York, Michigan, and Minnesota after President Trump blamed this tax for his intention to double tariffs on Canadian steel and aluminium imports to 50%. Premier Doug Ford made this decision following discussions with US Secretary of Commerce Howard Lutnick.
Daron Dorsey, executive director of the Las Vegas-based Association of Gaming Equipment Manufacturers (AGEM), commented that AGEM and its members closely monitor trade policy decisions and assess how to navigate these changes based on each company’s specific circumstances. He emphasised that these policies affect multiple industries beyond gambling in the short and long term and that gaming suppliers are adapting to this new reality.
Economists and policy experts warn that tariffs could lead to income and job losses and force consumers to pay more for many products. Additionally, tariffs could disrupt production lines and supply chains deeply integrated across North America, affecting over $1.5 trillion in goods traded between the United States, Canada, and Mexico.
This article was first published in Portuguese on 14 March 2025.
