Delta Corp Share Price Remains Under Pressure on 28% GST Issue

Delta Corp Share Price Remains Under Pressure on 28% GST Issue

Casino operator Delta Corp shares prices remained lower on Friday as the Indian government is determined to charge 28 percent GST on all the money added to their account by casino players. The government recently announced 28 percent flat GST on all kind of betting, including online casino and land-based casinos. Delta Corp stock declined by almost 28 percent on the day Indian government suggested GST on casinos and betting platforms.

Delta Corp stock recovered after the initial shock as the company recently announced strong quarterly numbers. But the results failed to cheer investors who are more concerned about long term impact on Delta Corp’s business.

Many people associated with casino segment had urged Indian government to reconsider the decision to charge 28% GST. As GST Council confirmed that it will implement 28 percent GST from October 1, Delta Corp stock declined in yesterday’s session.

For today’s trade, Delta Corp was trading with one percent decline. The stock is currently trading at Rs 186 and it close to its yearly low of Rs 173.70

Market experts are concerned about the company’s future business and how GST would impact the margins. In case the government revises the tax in future, we could see better performance for the stock. Government announced that it would review the decision after six months of implementation.

As per Delta Corp’s official website, “The company currently own and operate casinos in India, in the states of Goa and Sikkim also started an international casino in Nepal, offering approximately 2,000 gaming positions. In addition, we have also ventured into the fast-growing online gaming space through our acquisition of Gaussian Networks Private Limited, which operates the online poker site ''. Our Company holds three of the six offshore gaming licenses issued in Goa, one land based casino in Goa and one in Sikkim; and two online gaming sites.”

The company is the only casino operator in India that is listed on stock exchanges. Ace investor Rakesh Jhunjhunwala was strong believer in Delta Corp and his company made good profits in this counter.

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