EILERS: Slot & Table Demand Forecast – Post 4Q22

Based on reported figures and our own proprietary research, we estimate that total U.S. & Canada slot machine sales increased +41% y/y to ~27,600 total games sold in 4Q22. Both replacement sales and expansionary sales displayed growth versus the prior year; we estimate replacement sales increased +35% y/y while expansionary sales increased +83% y/y. This was +23% above pre-COVID 4Q19 levels, which was the second period of sales surpassing CY19 levels; replacement sales were +27% above 4Q figures in CY19 while expansionary sales were +9% above 4Q19. On a sequential basis, total shipments increased +18% q/q driven by substantial growth from replacement sales as well as moderately stronger expansionary shipments.