Indian casino operator Delta Corp reported a sharp year-on-year decline in profitability for the quarter ended December 31st, 2025, as regulatory changes, higher indirect taxes, and weaker gaming revenues continued to weigh on performance.
The casino and hospitality operator posted a standalone net profit of Rs193.8 million ($2.14 million), down more than 53 percent from Rs416.1 million ($4.59 million) in the same period a year earlier, according to its unaudited financial results.
According to the financial results released on Friday, January 16th, revenue from operations on a standalone basis fell to Rs1.18 billion ($12.99 million), compared with Rs1.5 billion ($16.55 million) a year earlier, reflecting softer gaming activity in a more challenging operating environment. The decline comes against the backdrop of tighter regulation in India’s gaming sector, including higher taxation and restrictions on online gaming activities.
On a consolidated basis, Delta Corp reported a profit after tax of Rs142.8 million ($1.57 million) for the December quarter, down sharply from Rs637.8 million ($7.03 million) in the corresponding period last year. Consolidated revenue from operations stood at Rs1.6 billion ($17.66 million), compared with Rs 1.87billion ($20.59 million) in the preceding quarter, underscoring sustained pressure across both its gaming and hospitality segments.
A major drag on earnings during the period stemmed from the enactment of the Promotion and Regulation of Online Gaming Act 2025 (PROGA), which bans online games involving real-money stakes (RMG). As a result, Delta Corp wrote down the value of its investments in several online gaming entities, including Deltatech Gaming Ltd, Head Digital Works Pvt Ltd, and Openplay Technologies Pvt Ltd.
The company recorded a Rs378.34 million ($4.17 million) cumulative reduction in the fair value of these investments in its standalone books, routed through Other Comprehensive Income, with management stating that the carrying value of these investments has been reduced to nil following the effective halt of their revenue-generating operations.
In addition to regulatory headwinds, Delta Corp continues to face significant uncertainty from long-running Goods and Services Tax (GST) disputes. Tax authorities have issued show-cause notices alleging short payment of GST amounting to Rs23.21 billion ($255.8 million) across the company, its subsidiaries, and an associate for the period from July 2017 to November 2022.
The demands are based on GST being levied on gross bet value rather than gross gaming revenue, an issue affecting the wider industry. The company has challenged the demands and secured interim relief, with the matter now awaiting judgment from the Supreme Court. Based on legal advice, no provisioning has been made for the disputed amounts.
Profitability has also been impacted by the increase in GST to 40 percent on the sale of gaming chips, which has compressed margins in the company’s core casino operations.
Despite these near-term challenges, Delta Corp said it remains focused on operational efficiency and long-term value creation, while continuing to pursue expansion of its physical casino and hospitality footprint in Goa and other markets.
