Physical Casino and Hospitality Divisions Rise Up Again
Srinagar, Jul 29: India’s only publicly listed casino operator Delta Corp has reported a 233 percent YoY (year-on-year) growth in gross revenues to Rs 314.46 crore for the first quarter of the 2022-23 Fiscal Year and a 16.5 percent increase over its Q4 FY 2021-22 results. The growth has been driven mainly by the company’s casino gaming division, backed up by a significant increase in hospitality revenues and continuous improvement of the online skill gaming division.
After staying closed for the greater part of 2021, Delta Corp’s main business – casino gaming, registered gross revenues of Rs 250.72 crore, marking a 505.17 percent YoY growth from the Rs 41.43 crore gross revenues of last year’s quarter ending on June 30, and a 19.02 percent growth over the Rs 210.66 crore gross income in the quarter ending on March 31, 2022.
Delta’s hospitality business rose 103 percent YoY and 18.5 percent from the previous quarter to Rs 19.91 crore. The company’s profits grew by 10.29 percent to Rs 77.38 crore from the Rs 70.16 crore reported after March, reversing the Rs 35.22 crore loss of Q1 FY 2021-22.
The Fiscal Year that ended on March 31, 2022 brought a total of Rs 765.2 crore in gross revenues for Delta Corp marking a 48.4 percent YoY growth.
Online Casino Gaming Keeps Growing
While the country’s land- and river-based casinos went through major ups and downs caused by the pandemic-related restrictions, online casinos together with SevenJackpots India and other casino comparison platforms experienced a constant surge of interest and steady growth. The upward trend was fueled not only by Covid-19 stay-at-home rules, but also by rising smartphone penetration and internet coverage, cheap mobile data plans and convenient digital payment options.
Delta Corp’s online gaming division was no exception, registering a 3.06 percent growth to Rs 43.83 crore over previous quarter’s gross revenues of Rs 42.53 crore on the back of a 19.1 percent growth registered between Q3 and Q4 FY 2021-22.
The division features online poker site Adda52.com, online rummy platform Adda52rummy.com and the new addition LeagueAdda.com offering online fantasy sports.
Upcoming Legal and Tax Policy Changes will Shape the Future of the Sector
While growth and expansion are the words that best describe what is happening to India’s offline and online casino sector, its future will be shaped by the changes in the legal and tax policy environment related to gaming which are currently brewing in the country.
In May this year, the Central Government set up an inter-ministerial committee with the task to study global best practices on online gaming regulation, consult experts, and elaborate recommendations for a broad framework of laws to regulate online gaming in India on a national level.
The panel was mandated to examine a number of issues such as compliance burden and ease of doing business, creation of a level playing field, as well as gamer protection matters concerning the risks associated with gaming including addictions and problem gambling.
Another panel, an eight-member Group of Ministers (GoM) presided by the Chief Minister of Meghalaya Conrad K. Sangma, was established in May 2021 with the mandate to examine GST applicability and valuation issues concerning levy of services provided by online gaming, casino, lottery and horse racing operators.
In May this year, the GoM submitted its report with recommendations for GST policy updates including a uniform levy for all gaming varieties at a rate of 28 percent over the full ticket value of all transactions. Concerning casino gaming, the suggestion was to charge GST on the full value of chips purchased by a player, but subsequent bets, including those made from winnings, not to be charged.
Based on input from Goa Industries Minister Mauvin Godinho, the GST Council at its 47th meeting held in June did not adopt the GoM recommendations and directed the panel to reexamine its report. The GoM has scheduled its final report to be delivered in August, after failing to reach consensus in July.
It remains to be seen how the work of both panels will be finalized and adopted by legislators and what the effects will be on the functioning and scope of India’s offline and online casino gaming industry.
