GST impact: Delta Corp shares tank 7% as casinos, gambling to attract 40% tax

Shares of Delta Corp tumbled 8 per cent in Thursday's trade as the GST Council introduced a 40 per cent tax on casinos, lotteries, betting, horse racing, gambling, and online money games under a new slab for luxury and demerit services. 

Delta Corp is the only listed company engaged in the casino -- live, electronic and online) gaming industry in India. The stock fell 7.22 per cent to hit a low of Rs 88.35 on BSE. In a FAQ, the government clarified that for all specified actionable claims including betting, casinos, gambling, horse racing, lottery and online money gaming, GST rate of 40 per cent will apply. Besides, this, admission to sporting events like IPL will alsoattract 40 per cent GST, This rate of 40 per cent will not apply to admission to recognized sporting events. 

"Admission to other sporting events including recognised sporting events where the ticket price is not more than Rs. 500 continues to be exempt, and if the ticket price is more than Rs. 500, it continues to be taxed at the standard rate of 18 per cent," the government said.

Delta Corp shares are down 21 per cent year-to-date. The stock recently fell after the government banned online gaming. Delta Corp was seeking clarity on GST rates and had even temporarily put on hold put on hold its proposed integrated resort-cum-casino township in Dhargal, Goa. 

In its annual report, Delta Corp had said that it continued to hold all requisite approvals for the integrated resort project at Dhargalim. The project has been placed on hold pending further clarity on the GST framework applicable to integrated models involving gaming, hospitality, and entertainment, it had said. A decision on timelines and investments will be made once there is sufficient regulatory visibility, Delta Corp had said while filing its annual report on August 13, adding that  the project remains an integral part of Delta Corp's long-term strategic roadmap.

Adjacent to the new international airport at Dhargalim, the landmark 88-acre integrated resort and water park would feature multiple 5-star hotels, an electronic casino, theme park, retail complex, expo center, multiplex, gaming zones and family-centric attractions, the development.