Delta Corp delays online gaming IPO due to GST uncertainty

Delta Corp has put plans to take its online gaming unit public on hold.

India.- Delta Corp has made the decision to postpone plans to take its online gaming unit public due to the uncertainties surrounding the GST’s decision to impose a tax rate of 28 per cent on the full face value amount for online gaming, casinos and horse racing betting. The company’s CFO, Hardik Dhebar, expressed the importance of clarity for investors.

In the second quarter of the year, Delta Corp’s online gaming unit contributed 15 per cent to its net revenue, excluding GST. 

The definition of online gaming is expected to be clarified during the GST council’s upcoming meeting on Wednesday, August 2. There have been doubts about whether the tax will be levied on the entry-level or on each wager. While officials have said there will be no revision to the proposed rate, the meeting will seek to resolve this aspect.

Various online gaming companies have expressed concerns over the potential ramifications of the tax, arguing that it could significantly impact volumes and the overall viability of gaming businesses.

Indian government to block gaming apps evading 28% Gaming tax

The Indian government has warned that it will tack action against gaming sites that do not pay a proposed new tax rate. The Finance Ministry and Ministry of Electronics and Information Technology (MeiTy) have said they will block non-compliant platforms. The Directorate General of Goods and Services Tax Intelligence (DGGI) will compile a list of violators.