Delta Corp Share Price Plummets Over 8% Following Announcement of 28% GST on Casinos from October 1
Delta Corp Share Price Plummets Over 8% Following Announcement of 28% GST on Casinos from October 1
Delta Corp, a company engaged in gaming and casino operations, experienced a significant drop in its share price, falling over 8% in early trade on Thursday. The decline came in response to an announcement made by Finance Minister Nirmala Sitharaman. According to her statement, a 28% Goods & Services Tax (GST) will be imposed on online gaming, casinos, and horse racing, and this tax will come into effect starting from October 1.
The implementation of a higher GST rate for the gaming and casino industry could have implications for the financial performance and profitability of companies operating in this sector, including Delta Corp. Investors and market participants reacted to this news by selling off the company’s shares, leading to the decline in share price.
As this tax change comes into effect in October, it will be closely monitored by investors and industry players to assess its impact on the gaming and casino sector’s revenues and overall market sentiment. The share price movement reflects the market’s immediate response to this regulatory announcement.
Following the announcement by the Goods and Services (GST) Council in its 51st meeting, Delta Corp’s shares experienced a significant drop, falling as much as 8.04% to ₹181.25 apiece on the BSE.
As per the council’s decision, a 28% tax will be levied on online gaming, casinos, and similar activities starting from October 1, 2023. However, the council also stated that it will review this tax rate six months after its implementation.
The market’s reaction to the council’s decision is evident in the sharp decline in Delta Corp’s share price. Investors and traders responded to the regulatory announcement, leading to a decrease in the company’s stock value.
The GST Council’s review of the tax rate after six months may provide an opportunity for potential adjustments based on the industry’s performance and feedback from stakeholders. The impact of the 28% GST on gaming and casino operations will be closely monitored by market participants, and any potential changes in the tax rate could also influence the market sentiment for companies operating in this sector, including Delta Corp.
During the 51st meeting of the Goods and Services (GST) Council, Finance Minister Nirmala Sitharaman mentioned that the decision to impose a 28% tax on online gaming, casinos, and horse racing was nearly unanimous, with only a few states opposing the decision. Among the states that opposed the levy of the tax on online gaming, the Delhi finance minister expressed his disagreement.
Additionally, some states like Goa and Sikkim had different preferences regarding the taxation approach. They advocated for the tax to be levied on the gross gaming revenue (GGR) instead of the face value.
The differences in opinion among the states highlight the complexities involved in making tax-related decisions, especially when it comes to industries like gaming and casinos, which can have varying impacts on different regions and stakeholders. The decision-making process for taxation on online gaming and casinos involves balancing revenue generation, regulatory aspects, and the interests of various states.
By opting for a 28% tax on online gaming and casinos, the GST Council has taken a stand on the taxation approach for these activities. However, the council’s decision to review the tax rate six months after its implementation indicates an openness to reassess the policy based on its real-world impact and feedback from concerned parties, including the states with differing views.
As of the last one month, Delta Corp’s share price has experienced a significant decline, falling more than 25%. This sharp drop in the stock price indicates a period of negative sentiment and selling pressure among investors.
Furthermore, when considering the year-to-date (YTD) performance, the stock is down by 11%. This suggests that the company’s shares have faced challenges and unfavorable market conditions throughout the year.
The decline in Delta Corp’s share price could be attributed to various factors, such as the recent announcement regarding the imposition of a 28% Goods & Services Tax (GST) on online gaming and casinos from October 1, 2023. Additionally, broader market trends, company-specific financial performance, and other industry-related developments might have contributed to the stock’s downward trajectory.
Investors and market participants are closely monitoring the company’s performance and market dynamics to assess potential opportunities and risks associated with Delta Corp’s stock. As with any stock investment, the price movement reflects market sentiment and perceptions about the company’s prospects in the current economic and regulatory environment.
As of 9:40 am, Delta Corp’s share price was trading at ₹187.30 apiece on the BSE, representing a 4.97% decline from the previous trading session’s closing price.
The lower share price at this particular time indicates continued selling pressure and negative sentiment among investors. The stock’s performance is subject to various factors, including market conditions, company-specific news, and overall investor sentiment towards the gaming and casino sector.
Investors and market participants are closely monitoring the stock’s price movement and trading activity to gauge market sentiment and potential opportunities or risks associated with Delta Corp’s shares. As the trading session progresses, the stock’s price may continue to fluctuate based on market developments and investor reactions to recent announcements and news affecting the company and the broader market.
