Case Study: South-East Government Run Lottery and Gaming Organization ensures bond debt coverage with Mather Economics

South-East Government Run Lottery and Gaming Organization - Customer Case Study

Mather Economics worked with a South-East Government Run Lottery and Gaming Organization that needed an independent evaluation of its lottery sales forecasts and Educational Enhancement Trust Fund contribution rates to ensure transfers would be enough to cover annual bond debt service. The organization also wanted to understand how sales and revenues might change under different payout levels, game launches, and economic conditions.

Mather Economics developed econometric models for instant ticket and draw game sales, then used the results to recommend payout levels that would maximize operating margins from instant games and validate the lottery’s bond floor requirements. Mather compared the findings with its earlier 2016 study, identified revenue and sales trends, and issued a report certifying that the lottery’s contribution rates would exceed the required annual bond debt service.