India's largest listed gaming operator, Delta Corp, has once again been embroiled in a tax dispute, receiving a demand notice from the Goods and Services Tax department to pay a total of 17.52 billion rupees (approximately 188 million US dollars) for the fiscal year 2022-23. This demand originates from the Commercial Tax Commissioner's office in Goa, which believes that Delta Corp and its subsidiaries have underpaid GST, and the tax base is calculated on the total betting amount of all games in the casino, rather than the net gaming revenue. In plain terms, the tax authority calculates based on total turnover, not profit, which is much harsher than imagined. Want to know the latest developments in Indian gaming tax regulation? Follow the PASA official website continuously.
Tax Dispute: Total Bets vs. Net Gaming Revenue
Delta Corp has acknowledged receipt of the notice in official documents but indicates it will contest in court. The company emphasizes that calculating GST based on total bets is a long-standing issue in the industry, which has been repeatedly reported to the government. In 2023, the company received a similar notice claiming a tax shortfall of 134 million US dollars, nearly three times its market value. This case is still under judicial review, and the Supreme Court of India has temporarily suspended the hearing of similar recovery cases from July 2017 to March 2022, a decision that may affect the direction of the current dispute.
Project Halt: $285 Million Resort Construction Paused
Amid ongoing tax disputes, Delta Corp has paused a major integrated resort project in Goa, originally planned with an investment of 285 million US dollars. The company states that it will wait for clear guidelines on casino betting GST before continuing development. Delta Corp currently operates India's most renowned gaming venues, including Deltin Royale, Deltin JAQK in Goa, as well as Deltin Suites in Goa and Casino Deltin Denzong in Sikkim. The company has also recently expanded into the luxury land-based casino market with the new "Deltin Zuri" in South Goa.
Industry Challenges: Complex Tax System Calls for Reform
The predicament of Delta Corp highlights the common challenges faced by the Indian gaming industry under complex tax laws. The method of calculating GST based on total bets rather than net gaming revenue has sparked considerable controversy and litigation within the industry, with stakeholders calling for a clearer regulatory framework to better match the tax base with actual revenue. Despite facing regulatory pressures and tax disputes, Delta Corp still pledges to maintain a world-class gaming experience while continuing to drive growth. Want to know the latest developments in Indian gaming regulation? Follow the PASA official website continuously.
————
This article is from "PASA-Global iGaming Leaders," a gaming industry news channel: https://t.me/pasa_news
Original in-depth gaming channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
