Mumbai-based gaming and hospitality giant Delta Corp has temporarily put on hold its proposed integrated resort-cum-casino township in Dhargal, Goa, citing uncertainty over the Centre’s planned changes to the GST framework. The project, with an estimated investment of Rs 2,000-2,500 crore, will remain on hold until clarity is received regarding the new tax rates.
The decision comes amid indications that the government may increase the GST on casinos to 40% under the GST 2.0 framework, up from the current 28% applicable on all bets.
“The 40% GST contemplated will make the entire sector unviable,” Delta Corp chairman Jaydev Mody said. “It will affect thousands of jobs, reduce visitation to the state, negatively impact revenue collection, and render past industry investments redundant. Our integrated resort, which would have created direct employment for 10,000 people, will remain on hold until all GST issues are clarified.”
The project, spread over 90 acres near Manohar International Airport in Mopa, was initially scheduled for completion by 2027. A public interest litigation related to the project is currently pending before the Bombay High Court at Goa.
Delta Corp, India’s leading casino operator with properties in Goa and Sikkim, recently reported a 36.1% year-on-year rise in net profit to Rs 29.4 crore for Q1 ending June 30. The company’s revenue increased modestly to Rs 184.7 crore from Rs 178 crore, though EBITDA fell 16.2% year-on-year to Rs 39.6 crore.