Indian casino and online gaming operator Delta Corp has reported gross income from operations of Rs 234.41 crores (US$28.2 million) for the three months to 31 December 2023, down 15.6% year-on-year and 14.8% sequentially due to a decline in the company’s casino gaming segment.
According to details filed on Wednesday, income from gaming operations reached Rs 181.54 crores (US$21.9 million) in the December quarter, down from Rs 230.38 crores (US$27.8 million) in the September quarter and from Rs 221.95 crores (US$26.7 million) a year earlier.
Conversely, income from online skill games jumped 8.3% over the previous quarter to Rs 39.13 crores (US$4.7 million) and from hospitality by 59.8% to Rs 13.74 crores (US$1.66 million).
Delta Corp also reported a 50.3% sequential decline in profit for the period to Rs 34.48 crores (US$4.2 million) as a result of the decline in gaming income.
Notably, the company said in associated comments that it had decided not to incorporate any no provision for impairment in its financials for the December 2023 quarter in relation to notices sent to three of its subsidiaries demanding back payment of 11,439.49 crores (US$1.38 billion) for alleged short payment of GST. This, Delta Corp explained, is because it believes these subsidiaries have “a good ground to defend against the said show cause notices.”
The company again noted that the claims are based on the gross bet value or face value of all games played at its casinos and online platform, which it describes as an ongoing “industry issue” with “multiple representations [having] been made by the industry participants to the Government in this regard.”
It added, “The company and subsidiary companies as mentioned above have filed Writ petitions and have obtained Stay order from respective High Courts.
“Without prejudice, the company, based on legal assessment, is of the view that all the above notices and the tax demands are arbitrary in nature and contrary to the provisions of law. The subsidiary companies will pursue all the legal remedies available to them to challenge such tax demands and the related proceedings.”
