Delta Corp reopens Sikkim casino as COVID shutdowns result in Q1 loss
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The casino operations of Delta Corp Limited, the only listed gaming operator in India, have been greatly affected since the second wave of COVID-19 hit the states of Goa and Sikkim, forcing authorities to lock the states down to contain the pandemic’s spread.
Delta’s Sikkim operations back, but Goa still closed
With the COVID cases subsiding from a high of more than 400,000 cases a day to over 38,000 cases as of Monday, some of the states have been easing their restrictions. Delta Corp. has already resumed operations of its Casino Deltin Denzong at the Denzong Regency Hotel in Gangtok, Sikkim, noting that it “will follow all the safety norms laid down by the state in this regard.”
However, there’s no indication that Goa—where Delta operates three of the six offshore casino vessels in the state—will soon follow suit. Casinos, hotels, bars, restaurants and tourism facilities have been shut down in Goa since late April as the country battles to control the COVID-19 crisis.
As Delta Corp stated in its company filing, “The casinos operated by the Company and its subsidiaries in Goa will remain closed during this period. We are unable to estimate the quantum of potential losses on account of this temporary closure and the pandemic at this time.”
Delta reports Q1 loss
The gaming company, which also operates real money casino app Adda52, reported a loss of Rs 28.93 crore for the three months to June 30, 2021.
Income from Delta Corp’s casino operations reached Rs. 41.43 crore in the first three months of the fiscal year, a drop of 80.45 percent quarter on quarter. Aside from the three offshore casinos in Goa and the Sikkim casino, Delta Corp is gearing up to open a land-based casino in Nepal while its integrated resort in Daman has yet to be granted a casino license.
Delta’s online gaming income was also down to Rs 43.28 crore from Rs 57.07 crore in Q2 2020, although the figures are slightly better compared to its March 2021 quarter.
Delta stated that casino operators in Goa have sought a reduction or waiver for the casino license fees covering the period of COVID-related shutdowns, which could reach Rs. 6.67 crores. According to Delta, “Due to the pandemic situation, the stress on the operations and the representations made, the management is hopeful that the Government of Goa may consider its request, favourably. In such a situation, the provision of license fees made in the books may not be payable in full or in part, as per direction of the Government of Goa.”
