Delta Corp has temporarily shelved its planned integrated resort-casino township in Dhargal, Goa. The decision follows the government's approval of a 40% GST rate on casinos, up from the previous 28%.
The proposed township, spread over 90 acres near Mopa's Manohar International Airport, was expected to be India's first integrated resort of its kind. The project was projected to cost Rs 2,000-2,500 crore and provide direct employment for about 10,000 people. Completion was initially planned for 2027.
The company also cited concerns about possible retrospective GST demands. Delta Corp indicated that the high tax rate could impact future investments in Goa and Sikkim, affecting casinos and related sectors such as hotels, airlines, taxi services and restaurants.
Casinos have been operating in Goa on-shore and off-shore for over two decades and contribute to tourism and local economies. Delta Corp is planning a larger offshore casino vessel to replace its existing Mandovi River vessel.
Good to know: Delta Corp reported a 36.1% year-on-year rise in net profit for the first quarter ending June 30
Casinos account for a small portion of India's gaming industry, which is largely dominated by online and unregulated platforms.
Jaydev Mody, Delta Corp chairman, stated: "The 40% GST contemplated will make the entire sector unviable. It will affect thousands of jobs, affect visitation to the state, will negatively affect revenue collection and make redundant all the capex that has been incurred by the industry."
He added: "Delta had planned to invest Rs 2,000-2,500 crore in an integrated resort which would have been the first of its kind in India, which would have given direct employment to 10,000 persons. We have decided to temporarily shelve the project until there is clarity on all the GST issues."
Delta Corp reported a 36.1% year-on-year rise in net profit for the first quarter ending June 30
