Delta Corp income down 3% in March quarter as casino and online skill gaming segments both fall

India’s leading casino and online gaming operator Delta Corp has reported gross income from operations of Rs 222.75 crores (US$26.7 million) for the three months to 31 March 2024, down 3.0% year-on-year and 5.0% sequentially due to declines in the company’s casino and online skill gaming segments.

According to details filed on Tuesday, income from gaming operations reached Rs 174.07 crores (US$20.8 million) in the March quarter, down from Rs 181.54 crores (US$21.7 million) in the December quarter and from Rs 175.61 crores (US$21.0 million) a year earlier.

Income from online skill games fell 10.4% compared to the previous quarter to Rs 35.08 crores (US$4.2 million) and from hospitality by 1.0% to Rs 13.60 crores (US$1.6 million).

Despite this, Delta Corp reported a 110% sequential increase in profit for the period to Rs 72.41 crores (US$8.7 million), aided by the sale of a subsidiary.

For the full year ended 31 March 2024, Delta Corp saw a 2.5% year-on-year decline in gross income to Rs 1,010.48 crores (US$121.0 million), with gaming operations down 1.5% to Rs 812.83 crores (US$?97.4 million) and skills games down 9.5% to Rs 146.80 crores (US$17.6 million).

Profit for the year was down 6.6% to Rs 244.23 crores (US$29.3 million).

On the ongoing issue of notices sent last year to three of its subsidiaries demanding back payment of 11,439.49 crores (US$1.38 billion) for alleged short payment of GST, Delta Corp said it and other impacted companies have all elevated Writ Petitions opposing such demands to the Supreme Court.

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, “Without prejudice, the company, based on a 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 companies have challenged such tax demands and initiated necessary legal proceedings.”