Delta Corp operates three floating casinos (Deltin Royale, Deltin Jaqk and Deltin Caravela) and one onshore casino (Deltin Casino – part of Deltin Suites) in Goa. Recently, the Goa government approved the revised fee structure for onshore and offshore casinos, which will be applicable from April 1, 2018.
The move is intended to increase the state’s revenue collection from casinos. We believe the increased license fee would have a significant impact on Deltin Caravela and Deltin Suites, as they operate on a
relatively small scale though Delta may look to pass through the increase in license cost in a phased manner. This can be done by increasing the entry fee or reducing the amount of non-refundable chips offered against the entry fee. We have a buy rating on Delta as of now.
Disclaimer: Sumit Bilgaiyan is the founder of Equity99. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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