Indian casino and online gaming operator Delta Corp has reported quarterly gross income of Rs 335.6 crores (US$40.3 million) for the three months to 30 September 2023, with the strong performance of its gaming segments somewhat negated by a slowdown in the hospitality segment.
According to Delta Corp’s financial statements, income from gaming operations reached Rs 283.1 crores (US$34.0 million), up 3.4% year-on-year and 2.0% higher than the June 2023 quarter. However, total income was down sequentially due to a 42.0% decline in hospitality revenues to Rs9.95 crores (US$1.2 million).
Online skill gaming operations were also slightly down both year-on-year and quarter-on-quarter to Rs 42.5 crores (US$5.1 million), with profit for the period declining to Rs 68.79 crores (US$8.3 million).
Delta Corp’s latest results come at a time when the company is fighting two show cause notices issued by the Directorate General of GST Intelligence in Hyderabad for alleged short payment of Goods and Services Tax of Rs 16,823 crores (US$2.02 billion) relating to the period from July 2017 to March 2022.
In this week’s filing, Delta Corp reiterated that the agency’s demands are based on “gross betting value as against gross gaming revenue, which has been an industry issue and multiple representations have been made by the industry participants to the government in this regard.”
The company added, “Without prejudice, the holding company and its two subsidiaries have been legally advised that the tax notices and demands are arbitrary in nature and contrary to the provisions of the law The company will pursue all legal remedies available to them to challenge such tax demands and related proceedings.”
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