Case Study: South-East Lottery and Gaming Corporation achieves an $8.7MM annual contribution margin increase with Mather Economics

South-East Lottery and Gaming Corporation - Customer Case Study

Mather Economics worked with South-East Lottery and Gaming Corporation to improve the payout levels for instant games at different price points. The goal was to identify the effective prize structure that would maximize contribution margins for Georgia Lottery instant games.

Mather Economics built an econometric model using historical sales data and factors such as game characteristics, lottery operations, macroeconomic trends, play styles, and retailer attributes to estimate demand elasticity. Using those results in a financial model, Mather Economics recommended payout changes for six instant game price points and forecast an annual contribution margin increase of $8.7 million.