• Notification Date: 03-08-2023
  • Notification No: N/A

Delta Corp shares in focus as 28% GST on Casinos from October 1

Shares of Delta Corp, which have fallen 22 per cent in the last one month, will be in focus on Thursday morning after Union Finance Minister Nirmala Sitharaman post the 51st meeting of the GST Council said the 28 per cent Goods and Services Tax (GST) on online gaming, casinos and horse racing is expected to be implemented from October 1 this year. 

Sitharaman said the GST Council has recommended that valuation of supply of online gaming and actionable claims in casinos may be done based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games or bets out of winnings of previous games or bets) and not on the total value of each bet placed.” 

She added that the 28 per cent tax on casinos and online gaming would be reviewed after six months after implementation. 

Delta Corp's Casino Gaming segment reported an Ebitda of Rs 101 crore for the June quarter, reflecting a margin improvement over 1,000 basis points sequentially and over 100 bps on YoY basis. 

Delta Corp had earlier said that the investing community would want absolute crystal clarity when it comes to online gaming and they would want full clear picture, as to what the way forward is, “without which nobody's going to put $1 into any new investment especially in a sector which has this kind of overhang. “ 

"So, keeping all that in mind the IPO obviously is on hold and we will revisit it once we have full clarity," CFO Hardik Dhebar said. 

Earlier, Delta Corp in a press release had said that: "With regards to the recent GST council outcome, we are hopeful and confident, given the kind of representations and concerns being raised by both online gaming and casino industry, coupled with investor community and some States, a mutually amicable and favourable outcome will emerge." 

Chairman Jaydev Mody had said that the company and the management were seized of the issues and concerns around the business and were confident of overcoming the same by implementing the right strategies. 

Managing Director Ashish Kapadia during the Q1 earnings conference call said: "We can't speculate at all at this moment of time because what the GST council has come about is just come out with a statement saying that GST should be levied on chips sold. Now what does chips sold mean? Return of chips, not return of chips, can we adjust all the return of chips? So, I think let the fine print come out, everyone is just over speculating. Having said that whatever the rule that may come about is fine. I think the industry will find a proper manner in which to solve this problem. So, I think let's wait and watch."