The casino license fee hike in the state of Goa is no longer news. Going forward, the state will submit details of the process it will follow to cancel the casino licenses. The directives are as per the Bombay High Court in Goa.  The state government will also detail the consequences that will follow if the casino operators fail to pay the license fee. The report is supposed to have been submitted on April 26.

Advocate General Dattaprasad Lawande will file a written reply stating the details. It will include if a show cause notice is issued to casino operators before the license is canceled.

Casino License Fee Hike

Effective April 1, the casino license fees in Goa spiked 4.5 times from the existing fee structure. The decision announced on March 28, 2018, was being challenged by the casino operators. However, results have not turned in their favour. Recently, one of the offshore casino operators, Golden Globe Hotels Private Limited(GGHPL) moved to the Bombay High Court at Goa in this regard. GGHPL paid 30 Crore as the recurring fee.

The price hike obviously hasn’t gone down too well with the casino operators. A few onshore operators though are alright accepting the revised fee provided they are granted live gaming permits at par with their offshore counterparts. 

Delta Corp Limited Quarter 1 Report

However, amidst the troubles of the price hike, poker enthusiasts have some news to look forward to. The gaming giant, Delta Corp Limited has shared its 1st quarter reports and it looks promising as ever at INR 2.22 billion. The numbers include an increase of 64% YoY (year-on-year) and 6% sequential growth. The larger share of the profit is fetched by the company’s floating casinos.

In the wake of casino license fee hike and talks about moving the floating casinos to land, this result is more than motivation.

As the entire casino industry is struggling with the new fees structure, Grant Govertsen, Union Gaming’s Head of Asia Equity Research said, “This is ongoing and there is no further clarity today. We had already adjusted our estimates to account for the new fee structure. So any movement would represent upside to our model. We think Delta comes out on the other side in better shape. Either the fees will decline, or some number of competitors will not survive, and Delta will be the natural share gainer as it captures displaced customers.” 

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