COVID casino closures result in Q1 loss for India’s Delta Corp

The ongoing COVID crisis in India has impacted many sectors in the country, including the regulated casino gambling industry. Gaming company Delta Corp reported a loss of Rs. 28.93 crore in the first quarter of Fiscal Year 2021, representing a significant decline from a profit of Rs. 57.77 crore it reported in the same period a year earlier.

The ongoing COVID crisis in India has impacted many sectors in the country, including the regulated casino gambling industry. Gaming company Delta Corp reported a loss of Rs. 28.93 crore in the first quarter of Fiscal Year 2021, representing a significant decline from a profit of Rs. 57.77 crore it reported in the same period a year earlier.

COVID forces closure of casinos in India

Delta Corp, the only listed gaming operator in India, operates three of Goa’s six floating casinos, along with the Casino Deltin Denzong at the Denzong Regency Hotel in Gangtok, Sikkim, and is also gearing up to open a land-based casino in Nepal. Its integrated resort in Daman has yet to be granted a casino license.

Income from its casino operations—which include its three casino boats and the Deltin Suites hotel and casino in Goa—reached Rs. 41.43 crore in the first three months of the fiscal year, a drop of 80.45 percent quarter on quarter.

Its income from online gaming, comprised of its poker and rummy site Adda52, was also down to Rs 43.28 crore from Rs 57.07 crore in Q2 2020, although the figures are slightly better compared to its March 2021 quarter.

Delta, however, stated that it “believes that the financial results for the period ended 30th June, 2021 may not have any material adverse impact on the net worth of the company,” noting that “the company is debt free and would have adequate liquidity available to honour its liabilities and obligations, as and when due.”

No casino reopening in sight in Goa

Delta Corp recently confirmed that its Sikkim casino has already reopened following “all the safety norms” after the state government eased its restrictions; however, the same cannot be said for its properties in Goa as the surge in COVID-19 related cases continues in the state.

In a company filing, Delta Corp stated: “We are unable to estimate the quantum of potential losses on account of this temporary closure and the pandemic at this time.”

Seeing as there is no end in sight for the COVID lockdown in the country, it may be time for state governments to re-evaluate the current state of regulations on gambling to allow online casino operations like 10Cric—with a goal of growing state revenues while avoiding local problems.

The state of Goa currently allows casino operations, as well as lottery. The pandemic, however, showed that consumers are now becoming digital converts and turning to technology for new digital experiences. In a country like India, which is growing to be a mobile-first market, the digital shift means consumers are now doing their daily activities—including playing casual entertainment games—in the safety of their homes.

And this is why India needs an updated, uniform and transparent regulation. In the case of Goa, ENV Media analysts noted that, “The Covid-19 pandemic may have given the decisive push in many industries. While tourism stands to improve in Goa, its gambling fame might just be brought onto a new level with online gambling. Goa might push for more online gamers and next-gen revenue streams instead of pushing for rich tourists (and trying to discriminate against locals or humble desi gamblers).”


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