Poker is not a skill game according to several people who do not wish to make gambling available in their territory. India’s Bombay High Court is just one location that is not keen to allow gambling online or otherwise. However, some states have more favorable laws, which is helping Delta gain access.
Delta Riverboats is a popular way for gaming to be available near India and other parts of Asia. Delta is the only company, publicly listed in India as a casino gaming business.
The tax hike or licensing fee Delta must pay to remain in operation is not going to affect the casino as much as originally thought.
The Tax Year for Delta
Delta had a great run for 2017’s last quarter. Their revenue increased by 11 percent overall, and 5 percent after the EBITDA. The EBITDA is earnings before interest, taxes, depreciation, and amortization. The net revenue for the year was an impressive 64 percent increase, while the EBITDA increased by 6 percent.
Union Gaming Asia stated Delta’s casino operation, which is all about Goa riverboat casinos provided the most revenue for online gambling and hospitality in India. Other industries in hospitality helped gain revenue, but not as much as the riverboats.
The strict political environment in the country makes India’s gambling industry extremely small. It is a growing market, but with comments like the above, where many do not see poker as a skill game—it is going to take time. Revenue has increased by 73% for 2018, just in the first quarter. There are also more gaming companies breaking into the market in states where it is legal to do so.
Delta will probably want to make a move onshore; however, there is plenty of opposition. A part of it comes from the Goa license fees, which increased and may have made it tough for the company to operate. Instead, it seems they are emerging from the higher fees with top revenue postings.
Delta is also attempting to expand their riverboat prowess and expand in a way that would offer more space to gamblers. The idea is to get onshore with a land-based casino that would offer the same quality as visitors have come to know on the riverboats. Grant Govertsen, Union Gaming Analyst, believes it is possible for the company to move onshore. Delta’s gaming revenue growth is one way to convince states that they want gaming revenue from foreigners.