Shares of Delta Corp Ltd plunged 7% on 4 September after the Goods and Services Tax Council increased the indirect tax on casino, racing club, and other gaming admissions to a ‘special rate’ of 40%. 

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, agreed on Wednesday to implement a streamlined two-tier rate structure. The new tariffs will take effect on 22 September, the first day of Navratri.  All luxury and tobacco products will be taxed at a special rate of 40%.

Admission to casinos, race clubs, or athletic events such as the Indian Premier League (IPL) would now be subject to a 40% GST, up from 28% previously. Yachts and other vessels used for pleasure or sports will be taxed at 40%, as will specific actionable claims such as betting, casinos, gambling, horse racing, lottery, and online money gaming.

Delta Corp is India’s largest publicly traded casino and gaming corporation, with operations in a variety of areas such as casinos, online gambling, hospitality, and real estate. The corporation operates casinos in Goa, Sikkim, and Nepal, with a mix of offshore casinos, floating hotels, and onshore gambling options. 

Delta Corp’s affiliate, Deltatech Gambling Limited, also operates online poker platforms, expanding its digital presence in the gambling business. In the hospitality industry, the company owns and runs hotels in Goa, Daman, and Sikkim that appeal to both tourists and gamers. Delta Corp has also ventured into real estate through joint ventures and strategic acquisitions.

The company recorded a 35.9% year-on-year (Y-o-Y) increase in consolidated net profit to Rs 29.46 crore for the June quarter, while revenue from operations increased by 3.5% to Rs 184.17 crore.  

At 2:15 pm, the shares of Delta Corp were trading 6.63% lower at Rs 88.90 on NSE. 

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