Delta Corp: how a 28% GST on casinos robbed the stock of INR1,500 crore in market cap

Illustration by Muhabit ul haq via AI

Synopsis
The GST council has imposed a 28% tax each on online gaming, horse racing, and casinos, and on full face value. This has impacted Delta Corp the most, with its stock crashing 28%. The casino chain is currently available at a cheaper valuation than its peers in the hospitality and pure-play gaming segments. Should investors place their bets?

Around INR1,500 crore was wiped out in a matter of hours. A stock that gave double the one-year returns of the Nifty 50, was left languishing, crashing 28%, as the market closed on July 12. It was nothing short of a heist. Casino mogul Jaydev Mody probably didn’t even see it coming. On the evening of July 11, the Goods and Services Tax (GST) Council decided to impose a 28% tax on gross gaming value for online gaming. This brought online gaming