Delta Corp. introduces promotional casino chips to entice customers amid GST issue

The largest gaming operator in India, Delta Corp, has introduced special casino chips to entice customers back following a decline in foot traffic caused by the controversial 28% Goods and Services Tax (GST) on the face value of purchased chips.

The CFO, Anil Malani, was aware of the method’s financial costs but thought it was necessary given the customer exodus that followed the implementation of the new GST requirement in October.

According to Malani, the company saw a significant decline in its clientele and decided to introduce promotional chips to reduce its tax liability.

Malani said that the results have been positive despite the impact on the bottom line and a 6% to 8% decrease in margin. Since their inception in December, the promotional chips—which may be used for play but cannot be redeemed—have accounted for 45% of the company’s fourth-quarter revenue.

The three notices issued by Delta Corp in Goa, Sikkim, and West Bengal have been put on hold as it awaits the outcome of notifications demanding the return of 11,439.49 crores (US$1.38 billion) for alleged shortfalls in GST payments.

Malani notes that the company has always paid 28% GST on casinos using the same method as in the pre-GST era, and he anticipates that both cases would be heard concurrently by the Supreme Court. By the end of the year, Delta Corp hopes to achieve revenue and profitability levels that it was at before October, helped by a rise in foot traffic.

Original story by: IAG