Delta Corp, India's largest gaming company, saw its shares surge nearly 6% after the Supreme Court agreed to hear challenges against GST notices worth ₹1.12 lakh crore issued to online gaming companies.
The hearing, set for January 10, could reshape the sector's tax framework.
The big picture: The gaming industry is contesting the retrospective application of a 28% GST on entry amounts, introduced in August 2023.
For Delta Corp, which operates both physical casinos and online platforms like Adda52.com, the ruling's implications extend beyond immediate tax liability to future business viability.
By the numbers: The stock rallied from ₹109.6 to touch ₹117.7 intraday, settling at ₹114.3.
This 4.33% gain reflects investor optimism about potential tax relief, coming just days before Delta's Q3 results on January 13.
Why it matters: The tax dispute's scale is massive - ₹1.12 lakh crore in demands across 71 companies, potentially reaching ₹2.3 lakh crore with penalties.
The Supreme Court's willingness to hear the case suggests recognition of the industry's concerns about retrospective taxation.
Strategic context: Delta's diverse portfolio - spanning casinos in Goa, Sikkim, and Nepal, plus online gaming - provides some buffer against regulatory shocks.
However, the GST framework's final shape could fundamentally affect online gaming economics.
The bottom line: While today's rally captures optimism about tax relief, the broader story is about regulatory clarity in India's gaming sector.
The Supreme Court's decision could determine whether companies like Delta can maintain their growth trajectory while navigating tax compliance.