India’s only listed gaming operator, Delta Corp, said in a Wednesday filing that it has received notices from the Office of the Commissioner of Commercial Taxes, Government of Goa ordering the payment of around Rs 1,752 crore (US$188 million) for alleged short payment of GST.
In the filing, Delta Corp noted that the order echoes similar demands for payment of GST for the period from July 2017 to March 2022, which the company is challenging in court.
As reported by Inside Asian Gaming, Delta Corp had received in 2023 a notice of tax liabilities from the Directorate General of GST Intelligence in Hyderabad on an alleged shortfall in tax amounting to a whopping 11,400 crore (US$1.34 billion) – roughly three times its total market cap.
This, the company explained, was based on the estimated gross bet value of all games played at its casinos rather than on gross gaming revenue.
This week’s notice is based on a similar calculation, which Delta Corp said, “has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue.”
It added, “The company and its subsidiary have challenged earlier similar demands relating to the period from July 2017 to March 2022. The Hon’ble Supreme Court of India has stayed further proceedings of all the impugned notices for the period from July 2017 to March 2022 until the final disposal of the petitions before it.”
The latest demand from the Office of the Commissioner of Commercial Taxes, Government of Goa includes Rs 1,350 crore (US$145 million) against Delta Corp Limited and another Rs 402 crore (US$43 million) against its subsidiary, Highstreet Cruises and Entertainment Private Limited.
The group has already suspended construction of a US$285 million integrated resort project in Goa until it receives more clarity on the GST charged on bets placed.
Delta Corp operates India’s two largest offshore casinos, Deltin Royale and Deltin JAQK, and the country’s only floating hotel with a casino, King Casino, all located in Goa. It also owns and operates the Deltin Suites in Goa and Casino Deltin Denzong in Sikkim, as well as the 176-room five-star hotel The Deltin in Daman. In FY23 it started operation of “Deltin Zuri” – which it describes as the only luxurious land-based casino in South Goa.
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