Shares of Delta Corp Ltd came under heavy selling pressure on Friday, falling more than 12% in early trade after the Supreme Court upheld the constitutional validity of the retrospective 28% Goods and Services Tax (GST) levy on online gaming companies, fantasy sports platforms and casinos.
The stock was trading at ₹71.10 on the NSE at around 9:30 AM, down 12.3% from its previous close of ₹81.05. Delta Corp touched an intraday low of ₹68.15, while trading volumes crossed 1.16 crore shares in the opening session.
The Supreme Court, in its ruling delivered on May 27, upheld GST authorities’ decision to levy 28% tax on the full face value of bets placed in online gaming activities. The apex court also validated retrospective tax demands, delivering a major setback to the real-money gaming industry.
According to reports, the verdict effectively revives tax demands worth nearly ₹2.5 lakh crore across the gaming ecosystem, including online gaming companies, fantasy sports platforms and casino operators.
The court observed that online gaming activities involving staking money on uncertain outcomes would qualify as betting and gambling under the GST framework, making them liable for the higher tax rate.
The ruling has intensified concerns over the financial impact on companies operating in the gaming and casino space. Industry estimates suggest the sector faces enormous retrospective tax exposure, with authorities expected to continue pursuing recovery proceedings following the judgment.
Delta Corp has been among the companies facing GST-related scrutiny in recent years. The company had previously received a GST show-cause notice of ₹23,204 crore as part of the broader tax dispute involving the gaming sector.
Market participants appear to be reacting to the possibility that the judgment could prolong legal and financial uncertainty for gaming companies, even as the industry evaluates potential next steps after the Supreme Court’s decision.
Meanwhile, Delta Corp shares were trading 12.3% lower at ₹71.10 on the NSE at the time of publishing this article, compared with the previous close of ₹81.05.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should consult qualified financial advisers before making investment decisions.