India’s largest casino, Delta Corp has published the third-quarter result. The financial result has once again raised the question of the bailout of the Goa casinos in India. The pandemic-hit business in Goa is now looking at a bleak future if help does not come.
The total revenue in three months ending on September 30, was INR 460.5mn ($6.2mn), a drop of 77.5% for the same period last year. The company has booked a net loss of INR 549mn this year compared to an INR 590mn profit in Q3 2019.
The casinos in the state of Goa and Sikkim in India of Delta were asked to shut down amid the COVID19 pandemic since mid-March. The ‘skill gaming’ division of the casinos has carried the load since then with the revenue of INR 446mn. This was 8.9% more on a year-on-year basis for Q3, but one-fifth of Q2, 2020.
It is not immediately clear what caused the sequential decline of the online poker and rummy operations, but things are looking better for Delta in the last quarter. Delta has signed a partnership with the World Poker Tour on a WPT Online Series on its Adda52 site.
Things got better this quarter after Goa and Sikkim announced that the land-based casinos can start operations from November 1. Goa also announced that the licenses of the floating casinos will not be revoked. Delta has three floating casinos in the Mandovi river of Goa out of a total of six.
However, in Goa, all casino operators must pay their annual fees upfront. However, the casino operators have made a presentation to the State Government seeking a waiver, reduction, or proportionate payment mechanism for the gaming license fees as the operations were forced to close.
The Goa government has suggested a month-by-month payment. Also, eliminated the fees for the months when the casinos were closed. The casino operators would save INR 2.77bn ($37.4mn) from this.
However, this has caused controversy. Goa government has not helped any other sector, but the help to the Casino sector has been taken negatively.