Shares of Delta Corp, a leading gaming and entertainment company, witnessed a significant decline of 20% in early trading today, falling to Rs 197.45 compared to the previous day’s closing price of Rs 246.80 on the BSE. The stock opened lower at Rs 222.15 on the BSE, signaling a challenging day ahead for investors. This sharp decline came as a direct consequence of the GST Council’s decision to impose a 28% Goods and Services Tax (GST) on online gaming, horse racing, and casinos, raising the tax rate by 10% for online gaming platforms. Previously, these platforms were subject to an 18% GST on their platform fees.
The GST Council’s move to raise taxes on online gaming was met with disappointment by investors, causing Delta Corp’s shares to crash. The market capitalization of the company, specializing in gaming and entertainment, dwindled to Rs 5,287 crore during the current trading session. As trading commenced, 1.89 lakh shares of the firm were exchanged, resulting in a turnover of Rs 3.98 crore. It is worth noting that despite the recent slump, Delta Corp’s stock has experienced a 10% increase over the past year. However, since the beginning of this year, the stock has suffered a decline of 8.31%.
The decision by the GST Council to levy a higher tax rate on online gaming platforms has sparked concerns among investors about the potential impact on Delta Corp’s financial performance. The company, known for its diversified gaming offerings and entertainment services, may face challenges in maintaining its revenue growth and profitability in the face of increased taxation. Delta Corp operates a range of popular gaming destinations, including casinos and horse racing venues, where patrons can enjoy various forms of entertainment.
These venues have been significant contributors to the company’s success, and the imposition of a higher tax rate threatens to dampen its prospects. The gaming industry in India has witnessed remarkable growth in recent years, with a surge in online gaming platforms. However, the increased taxation may hamper the sector’s expansion and profitability, which could have wider implications for the industry as a whole. Market analysts are closely monitoring the situation and assessing the potential repercussions on Delta Corp’s financials and overall market sentiment.
Investors will be keen to see how the company adapts to this new taxation landscape and whether it can mitigate the negative impact on its operations. In conclusion, Delta Corp’s shares experienced a significant decline of 20% following the GST Council’s decision to impose a 28% GST on online gaming, horse racing, and casinos. This increase in taxation has raised concerns among investors about the company’s future performance, potentially affecting its revenue growth and profitability. Delta Corp now faces the challenge of navigating this new tax regime and maintaining its position in the gaming and entertainment industry.