EILERS: Slot & Table Demand Forecast – Post 1Q23

Based on reported figures and our own proprietary research, we estimate that total U.S. & Canada slot machine sales increased +19% y/y to ~23,400 total games sold in 1Q23. This was another period where both replacement and expansionary units drove annual growth; we estimate replacement sales increased +17% y/y while expansionary sales increased +29% y/y. This was +7% above pre-COVID 1Q19 levels, which was the third consecutive period of sales surpassing CY19 levels; replacement sales were +21% above 1Q19 figures while expansionary sales were -36% below 1Q19. However, pre-COVID growth pulled back from the +25% observed in the prior quarter. On a sequential basis, total shipments decreased -16% q/q due to double-digit declines among both replacement and expansionary shipments.