Delta Corp. discontinues operation at Goa casino amongst GST increase - Asia Gaming Brief

Indian gaming and hospitality group Delta Corp has announced that it will discontinue operations at The Zuri White Sands Goa, Resort and Casino, effective from Friday, January 9^th.

According to a company filing, the casino resort was operated by its wholly-owned subsidiary Delta Pleasure Cruise Company Private Ltd.

In the filing, the group noted that the annual turnover of Delta Zurin amounts to 2.13 percent of its consolidated turnover – Rs155.1 million ($1.72 million), whereas its net worth is negative Rs152.6 million –a  0.62 percent negative contribution to the consolidated net worth of the company.

The group indicated that the reason for closure was that ‘the casino was operating at a loss’, furthering that the decision ‘is not expected to materially impact the company’s financial position’.

The move is part of the group’s ongoing consolidation and financial pivot, following the government’s increase in the Goods and Services Tax (GST) on casinos.

Delta Corp’s Chairman Jaydev Mody previously stated that the 40 percent levy, compared to the 28 percent previously applied, would “make the entire sector unviable”.

The statement came after Delta announced plans to suspend its integrated resort/township in Dhargal, Goa. The project was valued between Rs20 billion ($220 million) and Rs25 billion ($280 million). The group at the time indicated the project would be halted until greater clarity on the taxation framework is provided.