Based on reported figures and our own proprietary research, we estimate that total U.S. & Canada slot machine sales increased +27% y/y to ~23,600 total games sold in 2Q23. Replacement sales drove the increase this quarter; we estimate replacement sales increased +36% y/y while expansionary sales decreased -12% y/y. This was +18% above pre-COVID 2Q19 levels, which was the fourth consecutive period of sales surpassing CY19 levels; replacement sales were +13% above 2Q19 figures while expansionary sales were +64% above 2Q19. Pre-COVID growth re-accelerated from the +8% observed in the prior quarter, though below the 4Q22 peak pre-COVID performance of +25%. On a sequential basis, total shipments increased +1% q/q due to a +1% q/q growth from replacement sales which was partially offset by a -3% q/q decline in expansionary sales.
