Delta Corp delays IPO for online gaming segment due to uncertainty over new 28% gaming tax – IAG

India’s largest gaming company, Delta Corp, has shelved plans to list its online gaming division amid continued uncertainty over how the sector would be taxed going forward.

According to local media group Moneycontrol, which covers India’s economy and financial markets, a planned IPO has been postponed, while Delta Corp is waiting for further clarification on a proposed 28% tax on revenue from online gaming companies, horse racing and casinos waits.

The GST Council, which announced the tax on July 11, will meet today with industry eagerly awaiting further clarification.

“The investor community obviously wants absolute clarity when it comes to online gambling and they want a clear picture of where it’s going and without that no one is going to put $1 into a new investment, especially in a sector that is…” has such a backlog,” said Hardik Dhebar, Delta Corp. CFO.

Excluding GST, Delta Corp’s online gaming segment, which includes poker and rummy site Adda52, contributed 23.15% to the company’s net revenue in the second quarter, although Dhebar said it was still negative on a segment revenue basis.

“We’re hoping for a turnaround [(online gaming revenue] positive in the third quarter,” Dhebar said, according to Moneycontrol.

Despite the uncertainty surrounding online gaming, Delta Corp last week reported its highest-ever consolidated quarterly gross revenue of Rs.338 crores in the second quarter of 2023, buoyed by strong results from its onshore and offshore casino operations.