Delta Corp defers Goa integrated casino resort

One of India’s premier casino operators, Delta Corp Ltd, has chosen to defer its planned integrated resort development in north Goa, opting instead for a substantial investment in the real estate sector. The decision, announced in a Friday filing, marks a pivotal shift in Delta Corp’s expansion plans as the company deals with challenges for the gaming industry in India.

Focus on Mumbai and Goa projects

As India’s gaming industry grapples with daunting tax bills and the looming specter of a 28% Goods and Services Tax (GST) on all gaming operators, Delta Corp has decided to redirect its focus. The company, which operates hotels and casinos across various Indian states and Nepal, has deferred its flagship project in Dhargalim, Goa, citing the need for strategic diversification.

Delta Corp unveiled plans for a “strategic investment” amounting to nearly 100 crore (US$12 million) in Peninsula Land Ltd (PLL), a prominent real estate developer in India. The move also involves the creation of a joint venture between Delta Corp and PLL, with a capital outlay of US$30 million, making Delta Corp the majority stakeholder. This strategic partnership aims to propel Delta Corp’s expansion into the thriving real estate sector.

With the integrated resort project in Dhargalim deferred, Delta Corp, as the majority stakeholder in the joint venture, is poised to execute projects primarily in Mumbai and Goa. The company intends to leverage its experience and cash reserves to run a debt-free operation, mirroring its successful approach in previous ventures. Delta Corp Chairman Jaydev Mody emphasized the compelling long-term growth opportunities in India’s real estate sector, fueled by increasing demand and regulatory developments.

Positioned for growth in India’s realty space

Delta Corp’s Chairman, Jaydev Mody, (in photo above), expressed optimism about the strategic venture with PLL, highlighting India’s burgeoning real estate sector. Mody sees this move as well-timed, given the sector’s growth potential, consolidation, and the increasing preference for established brands. Delta Corp aims to capitalize on this new phase of growth, aligning its strategy with the evolving dynamics of India’s realty space.

As Delta Corp charts this new course, the industry watches closely, and stakeholders ponder the implications of this significant shift in strategy amidst a challenging landscape.

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