Delta Corp, a Mumbai-based gaming and hospitality firm, has put on hold its plans for an integrated casino resort in Goa, known as the casino capital of India.
According to the Times of India, Delta Corp has envisioned an “integrated resort-cum-casino township” on 36 hectares (90 acres) in Dhargal, near Manohar International Airport. It planned to invest up to 2,500 crore rupees (US$285 million) to develop the complex. It paused the project on news that the government may impose a 40% goods-and-services tax on casinos, up from the current 28%.
“The 40% GST contemplated will make the entire sector unviable,” Delta Corp Chairman Jaydev Mody told the Times. “It will affect thousands of jobs, hurt visitation to the state, reduce revenue collections and make redundant all the capex incurred by the industry.”
Delta has touted the development as the first integrated resort in India. The blueprint includes hotels, meetings-and-convention facilities, a shopping mall and a theme park, among other attractions. The resort, which was scheduled to open in 2027, could have created 10,000 new jobs, Mody said.
Stocks fall, rise on gaming developments
The Goa project has faced other obstacles, including public-interest litigation challenging the use of agricultural land for a casino complex. That case is pending before the Bombay High Court.
In a statement on its website, Delta Corp looked to a positive resolution of that issue. “The anticipated land policy of the Goa government is still on the anvil. Once this materialises, it will lead to the creation of gaming zones and formalise the industry. As a leader in this segment in the Goa market, we are well-positioned to benefit from this significant change.”
Meanwhile, while work on the development is suspended, Delta Corp says the IR remains part of its long-term growth strategy. The company may move forward when “there is clarity on all the GST issues”, said Mody.
In related news, Delta shares dipped last week after Indian lawmakers abruptly voted to ban real-money iGaming. Shares rose 15% on news of the Goa suspension, reports India Business Today.
Mumbai-based Delta Corp has shelved plans for a casino resort in India after news of a proposed 40% tax on gaming.