Based on reported figures and our own proprietary research, we estimate that total U.S. & Canada slot machine sales decreased -4% y/y to ~22,300 total games sold in 3Q23. Total sales were impacted by a decline in expansionary shipments, which was partially offset by an increase in replacement sales; we estimate expansionary sales decreased -44% y/y while replacement sales increased +5% y/y. This was +2% above pre-COVID 3Q19 levels, which was the fifth consecutive period of sales surpassing CY19 levels; replacement sales were +11% above 3Q19 figures while expansionary sales were -37% below 3Q19. Pre-COVID growth de-accelerated from the +18% observed in the prior quarter (+12% in 1H23). On a sequential basis, total shipments decreased -5% q/q due to a -27% q/q decline from expansionary sales as well as a -2% q/q decline in replacement sales.
