Indian casino operator Delta Corp posted a net loss of $22.3 million for the quarter, reversing a profit of INR 294.6 million ($3.09 million) a year earlier. The swing came after the company set aside a provision of INR 3.07 billion ($32.1 million) following a May 27 ruling by India's Supreme Court on GST application to online gambling, betting and casinos.
The provision includes estimated GST of INR 1.44 billion ($15.1 million), interest of INR 1.48 billion ($15.6 million) and a penalty of INR 143.9 million ($1.51 million). Delta Corp recognised the charge as a precaution but intends to contest the calculation of the liability, interest and penalties. Before the provision, profit before tax fell 26.2% to INR 277.4 million ($2.91 million).
Total operating revenue dropped 8.5% year-on-year to INR 1.69 billion ($17.7 million). Casino revenue declined 12.1% to INR 1.52 billion ($15.9 million), while casino segment profit fell 26.9% to INR 199.5 million ($2.09 million). Group EBITDA dropped 19.5% to INR 315 million ($3.3 million), with margin narrowing from 21.3% to 18.7%.
The hospitality division provided the only upside, with revenue climbing 37.9% to INR 165.5 million ($1.73 million). Delta Corp closed the Deltin Denzong casino in Sikkim state to improve efficiency. King Casino remained offline during the quarter after vacating its berth on the Mandovi river — the operator is preparing a new vessel and awaiting regulatory clearance.
