Delta Corp – A huge but risky opportunity

Ask yourself this.

You’re going to the casino to have a good time. You decide to play with 10K, get the money exchanged and receive 7200 to play with. Seems alright, you’re going to have a good time and might get your money back

Now, you’re going to play with 1 Lac. You get 72000 to play with. You’ll think it doesn’t make sense.

Now you’re going to play with 10 Lacs. Will you be ok with playing with 720000 and giving away 2.8 L as GST?

That’s the difference this GST ruling on face value will do.

Rich people who are high rollers in casinos are not stupid. No one is going to give their money away like that. They would much rather fly to Macau, Singapore or Vietnam. It’s not about thinking you can beat the casino but going for better odds in your favor.

This may not impact the tourists who are going for the experience but it will deter the regulars or high rollers.

This is an unfair, and naive decision which was taken without consulting with any industry experts… the fact that the Finance Minister also talked about Moral values while announcing this says a lot. In the latest meeting she mentioned the only stakeholders that were impacted – Sikkim and Goa were against this at face value. But the rest of the council was against it.

There is no other country that taxes casinos at face value. GGR are the norms because it doesn’t work on the face value unless you want to kill the industry.