Indian gaming and hospitality company Delta Corp has announced it will suspend plans for its integrated resort-cum-casino township in Dhargal, Goa, citing uncertainty over the central government’s proposed Goods and Services Tax (GST) increase on casinos.
According to local media, the project – valued between Rs20 billion ($220 million) and Rs25 billion ($280 million) – will remain on hold until greater clarity on the taxation framework is provided.
The development comes amid expectations that the government may raise GST on casinos to 40 percent under the upcoming GST 2.0 regime, compared to the current 28 percent levied on bets.
“The 40 percent GST contemplated will make the entire sector unviable,” said Delta Corp chairman Jaydev Mody. “It will affect thousands of jobs, reduce visitation to the state, negatively impact revenue collection, and render past industry investments redundant. Our integrated resort, which would have created direct employment for 10,000 people, will remain on hold until all GST issues are clarified.”
Planned on a 90-acre site near Manohar International Airport in Mopa, the resort was set to feature multiple hotels, a convention center, a multiplex cinema, a shopping mall, an electronic casino, a water park, banquet facilities, and a children’s entertainment area. Completion was initially expected by 2027.
However, the project has been hampered by legal and regulatory challenges. A Public Interest Litigation (PIL) challenging the conversion of agricultural land and its designation as an Investment Promotion Area is currently pending before the Bombay High Court at Goa. Political opposition has also emerged, with critics questioning the denotification of agricultural land, some of which was part of the Tillari Irrigation Project.
Demerger aimed at streamlining operations
To better manage the project’s capital-intensive nature, Delta Corp has restructured its operations by demerging the Dhargal development into a wholly owned subsidiary of Delta Penland Private Limited. This move is intended to allow a more focused approach and to facilitate potential fundraising through equity or debt.
Delta Corp, India’s largest casino operator with properties in Goa and Sikkim, continues to face pressure from regulatory uncertainty. The company recently reported a 36.1 percent year-on-year increase in net profit for the quarter ending June 30th, rising to Rs2.94 billion ($35 million). Revenue for the period reached Rs18.47 billion ($220 million), though EBITDA dropped 16.2 percent year-on-year to Rs3.96 billion ($47 million).
Mody emphasized that further expansion in Goa or Sikkim is unlikely under the current tax climate. “The question of investing in either of the two states does not arise with this uncertainty,” he said, highlighting that the proposed GST hike, combined with past retrospective tax demands, poses significant risks for the sector.
Licensed casinos, both onshore and offshore, have been operating in Goa for over two decades, serving as a driver for tourism and related industries such as airlines, hotels, restaurants, and retail.
