Delta Corp Ltd Management Discussions.

Economic Overview

Global Economy

Global economy is gradually emerging from the unprecedented crisis caused by the COVID-19 pandemic in 2020. Aggressive and swift policy responses by various central banks and the fiscal support in many countries led to a stronger than expected economic recovery across regions in the second half of 2020. According to International Monetary Fund (IMF), the global economy is expected to contract by 3.3% in 2020. While the global health crisis continues in the early months of 2021 with second and even third waves of the virus in many regions, accelerating vaccine rollouts and major stimulus packages in many advanced economies have provided a beacon of hope.

As per the IMF World Economic Outlook, April 2021, the global economy is projected to grow 6% in 2021 and 4.4% in 2022. The sizeable fiscal support announced in 2021, notably in United States and Japan, together with unlocking of Next Generation EU funds, will help lift economic activity among advanced economies. The strength of recovery will remain uneven depending on the severity of the pandemic in each country, the effectiveness of policy stimulus and access to vaccination. A more prolonged pandemic with new virus variants, re-imposition of lockdowns in many countries and uneven access to vaccines across the world could moderate the expected recovery of global economic growth.

World Economies: Performance at a Glance

World Economic output growth in %
2019 2020 2021P 2022P
World Output 2.8 -3.3 6.0 4.4
Advanced Economies 1.6 -4.7 5.1 3.6
United States 2.2 -3.5 6.4 3.5
Euro Area 1.3 -6.6 4.4 3.8
Japan 0.3 -4.8 3.3 2.5
United Kingdom 1.4 -9.9 5.3 5.1
Canada 1.9 -5.4 5.0 4.7
Other Advanced Economies 1.8 -4.2 4.7 4.0
Emerging Market and Developing Economies 3.6 -2.2 6.7 5.0
Emerging and Developed Asia 5.3 -1.0 8.6 6.0
China 5.8 2.3 8.4 5.6
India 4.0 -8.0 12.5 6.9
ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam) 4.8 -3.4 4.9 6.1

Indian Economy

The Indian economy declined sharply during first half of FY 2020-21 as the country grappled with the pandemic-induced lockdowns and restrictive measures. However, effective measures taken by the Government and the Reserve Bank of India (RBI) helped the Indian economy to recover. Rapid rollout of vaccines coupled with Government’s efforts on stimulating growth improved consumer sentiments. According to provisional estimates by National Statistical Office (NSO), Indian GDP is estimated to contract by 7.3% in FY 2020-21 as compared to growth of 4.0% in FY 2019-20.

*RBI Monetary Policy June 2021

Source: National Statistics Office; FY 2021 Provisional Estimates dated 31st May, 2021.

The trajectory of the pandemic still remains unpredictable to a very large extent, with country already witnessing a second wave of COVID-19. Real economy indicators moderated in April and May 2021, as many states imposed restrictions to arrest the renewed surge in infections. Consequently, RBI in its Monetary Policy Committee (MPC) estimated Indian economy to grow by 9.5% in FY 2021-22 considering the implications of the second wave on the overall economy. While most states have successfully flattened the curve now, the deadlier second wave has put a tremendous pressure on India’s healthcare infrastructure, necessitating a significant ramp-up to deal with the impending third wave. However, the implementation of localised and targeted restrictions during the second wave unlike a strict nation-wide lockdown last year, coupled with better preparedness and sustained policy support should limit the downside. On the positive side, the pace of vaccinations is likely to pick up with the revised vaccine procurement and distribution policy.

Industry Overview - Gaming & Entertainment Industry

Casino Gaming

The COVID-19 lockdown has actually changed the game of the Indian gaming sector with massive spikes in digital consumption during the lockdown across geographies and socio-economic classes.

Offline Casino industry being largely dependent on tourism, drive-in traffic, and social interaction was severely hit by lockdowns and restrictions due to COVID-19 pandemic in 2020. Some gambling hotspots remained closed until August 2020, and a few Vegas casinos still haven’t opened. Casino market is largely present in the United States (with Las Vegas being the hub), followed by Singapore and Macau among the emerging markets.

According to the GBGC (Global Betting and Gaming Consultants), casino gaming will lose a quarter of its revenues in 2020. According to FITCH Ratings, the industry is likely to improve in 2022 and will reach to pre-pandemic level by 2023. Availability of vaccine against COVID-19 would allow destination markets like Singapore and Las Vegas to start recovering in second half 2021. Macau will recover much faster, as it is dependent mainly on China. In other parts of Asia, the recovery of Casino industry will depend on the risk of renewed waves of COVID-19, re-imposition of lockdowns, unemployment reducing disposable income, travel restrictions, regulators extending working hours, and reducing gambling taxes.

As an alternative, Gaming such as Online Poker, Rummy, Sports Fantasy, etc., have gained significant traction in the Indian market in the recent years. Fantasy sports is the fastest growing segment of the real money market. Online gaming have the edge because they offer more privacy and convenience to their players. On top of that, it also offers numerous games. Also, online gaming now have mobile apps that can be installed and used for quick and easy gaming. Advertisement and bonus offers are common strategies employed by many online gaming companies in India to win and retain users. Many offer attractive welcome bonus packages to new subscribers with robust plans to reward their existing customers.

Virtual Reality or VR is another invention that paves the way for a more immersive gaming experience. The convenience of the cashless mode of payment during gaming are likely to boost the gaming market. However, uncertainty still continues in the regulatory framework and associated binary risks in relation to online and real money gaming in India.

As offline casinos continue to navigate remaining operational and ensuring the health and safety of guests and staff. Going ahead, the digital evolution within the casino industry is expected to grow and will trigger conversations among regulators to lead the industry forward.

Gaming Industry

Global Gaming Industry

The outbreak of COVID-19 pandemic has, unlike other industry verticals, accelerated the growth of the gaming industry in 2020. Global lockdowns spurred enormous interest in gaming across all regions and platforms as people who were stuck at home sought alternative means of entertainment – bringing the gaming activity into the social mainstream. Consequently, gaming companies increased their products and services to meet the demands. Virtual and mobile platforms are attracting more than hundreds and thousands of new visitors in online traffic. The gaming industry continued to be the fastest growing segments in the global media & entertainment market in 2020.

The gaming industry generated revenue of around US$ 177.8 billion in 2020, registering 23.9% growth over 2019 and the highest growth since 2012. Global games market is expected to register revenues of US$ 175.8 billion in 2021, representing a year-on-year (YoY) marginal decline of 1.1%. The industry is expected to reach US$ 204.6 billion by 2023, registering a CAGR of 7.2% over 2019-23. The increasing proliferation of mobile phones and easy availability of games on the internet along with innovations in both hardware and software are expected to have a positive impact on the growth of the global gaming market. In addition, the growing adoption of mobile and browser games which offer free-to-play business models is another trend that is gaining traction in the gaming market. Mobile gaming will be the fastest-growing segment over the coming years; however, console gaming will start gaining momentum in 2022, when the release schedule will be overloaded due to delays and there will be higher demand for purchase the new consoles.

Gaming Segments

Mobile gaming (smartphone and tablet) is expected to remain the largest segment in 2021, contributing 51.6% share of the global games market. As majority of the gaming revenue comes through mobile games, the increase in smartphone penetration would directly affect the growth of

2021 Global Games Market

Per Device & Segment with Year-on-Year Growth Rates the gaming industry. Mobile game revenues are projected to grow to US$ 90.7 billion in 2021, indicating an estimated growth of 4.4% YoY. In the mobile category, smartphones are expected to account for 44.9% of the industry share, followed by tablet games which is expected to contribute 6.6% of the overall market.

Console is the second-largest segment and expected to account for 28.0% of the global games market in 2021. Revenues from console gaming are expected to decrease by 8.9% YoY to US$ 49.2 billion in 2021. The launch of games for next-generation consoles has been impacted by the pandemic and will continue to be disrupted in 2021, with many launchings already pushed to the second half of 2021 or even 2022.

PC gaming is expected to account for 20.4% of the global games market in 2021 making it the third-largest segment. The pandemic has also led to shortage of hardware and components to negatively affect consumer spending on games on PC and console. Consequently, PC gaming revenues are expected to decline 1.7% YoY to US$ 35.9 billion in 2021. Of that, US$ 33.3 billion will be spent on downloaded/boxed games and US$ 2.6 billion will be spent on browser games.

Cloud Gaming – an emerging segment

This growing demand for mobile games is a direct result of the multiple technological advancements in the market, such as Augmented Reality (AR), Virtual Reality (VR), Cloud Gaming. The year 2020 marked a key inflection point for the cloud gaming market, with most of the major players (including Amazon, Google, Microsoft, and Tencent) having launched their respective services. Furthermore, stay-at-home orders sped up the adoption of cloud gaming globally, with consumers finding themselves with more time to invest in gaming. Recent developments in advanced cloud technology have turned the idea of cloud gaming into reality. In cloud gaming, the server, where all the games are stored, does all the computation work, which includes game scene rendering, game logic processing video encoding, and video streaming. Several companies are already offering commercial cloud gaming services. This new sector is also seen as a serious competitor for the traditional game market.

The overall awareness of cloud gaming has been very positively affected by the lockdowns and is expected to grow even faster in 2021 as a great number of people got to experience the power of the cloud while gaming in 2020. According to Newzoo, cloud gaming will bring in around US$ 1.4 billion revenues in 2021 which is a substantial increase over US$ 633 million in 2020. There will be almost 24 million cloud gaming users by the end of 2021. It also predicts that segment will lead to US$ 5.1 billion in revenue by 2023.

Gaming in Asia

The Asia-Pacific (APAC) region, dominated the global gaming industry and generated game revenues of US$ 84.3 billion in 2020, representing YoY growth of 16.8%. Asia-Pacific is expected to hold the largest market share in the gaming industry, where countries such as China, Japan, and South Korea represents a high potential in market growth.

The Chinese enterprises are ready to embrace the business opportunities brought by global digitalisation due to the rise in the digital ecosystem. At the end of the year 2019, the government of Beijing, the country’s capital and home to more than 20 million people, announced its plan to become the international capital of online games latest by the year 2025. The primary plan is to create a strategy that is built around a pretty aggressive revenue target, with the local government also involved.

Further, according to GamesChowk, Japan’s market has more than 70 million gaming players. Also, South Korea is one of the prominent country known for its culture of online gaming. The increasing penetration of smartphones and application stores with the right combination of hardware makers and software developers and rising internet infrastructure is driving the growth of the gaming industry in the country.

Source: Modor Intelligence report on Gaming Market

Industry Scenario

The COVID-19 pandemic certainly accelerated many trends in the games market, helping engagement spike across the globe. Gaming has etched itself into the habits of people during the lockdown and hence the growth is likely to continue going forward. However, the level of growth maintained throughout 2020 will not be replicated in 2021, given the unique circumstances of the year. The global gaming market is expected to reach US$ 204.6 billion by 2023, registering a CAGR of 7.2% during the period 2019-23. Emerging markets will drive much of these new revenues, as infrastructure and economies continue to grow across regions like Southeast Asia and the Middle East & Northern Africa.

Among the gaming segments, mobile gaming driven predominantly by Smartphones will continue to be the fastest-growing segment. However, it will take time for next-gen console supply to catch up to demand. Cloud gaming revenues are expected to exceed US$ 1 billion for the first time in 2021, when most of the major players including Amazon, Google and Microsoft will have launched their services across various platforms.

Some of the other factors propelling the gaming market are empowering nature of games, availability of different genres, such as strategy, action, simulation, etc. and a shift from physical games to online games. The gaming industry has also expanded its reach and application to other industry verticals. A key vertical is the education sector, where the infusion of gaming along with learning has led to the emergence of the gamified early learning segment where a combination of education and gaming is used to provide a novel way of learning.

Gaming in India

India is amongst the top five mobile gaming markets in the world. The online gaming sector is mainly divided into three key segments – real money games (RMG), mobile-centric/ casual games and e-sports. Within the RMG, the further sub classifications include rummy, poker, daily fantasy sports and quizzing. The key reason for uptake of gaming in last few years is mainly led by mobile as a primary driver and is the preferred form of gaming for majority of the gamers. Online gaming companies have witnessed a spurt in traffic in 2020 as firms went into shutdown mode or work from home triggered by COVID-19 pandemic. Working professionals and students have turned to online games for entertainment and social connect. The online gaming segment grew 18% in 2020 to reach Rs. 77 billion as online gamers grew 20% from 300 million in 2019 to 360 million in 2020. Of the total online gamers, an estimated 85% are mobile gamers. The count of online gamers in India is expected to reach 510 million by 2022.

India is amongst the largest in game downloads globally. Watching online gaming on platforms like Twitch and YouTube become more popular in 2020. YouTube Gaming revealed that 2020 was its biggest year ever, with 100 billion watch-time hours – double the number of hours watched in 2018. Action-oriented games remained the most popular in the top-10 rankings across all three parameters viz. downloads, consumer spent and Monthly Active Users (MAUs). PUBG Mobile was the first ranked action game in terms of all the above three parameters.

According to the FICCI-EY report, the online gaming segment is expected to grow at a CAGR of 27% to reach

Rs. 155 billion by 2023 and become the third-largest segment of the Indian M&E sector. The segment will grow across all its verticals viz. esports, fantasy sport, casual gaming and other games of skill, but revenue growth will be led by mobile-based real-money gaming applications across these verticals. Growth will be further aided by 5G-led innovations across cloud gaming, cross-platform gaming, e-commerce gamification and Virtual reality games.

Key Growth Drivers of the Gaming Industry in India

Among key growth drivers for the gaming industry are macro factors like increasing smartphone penetration, internet penetration, young population and adoption of digital payments adoption. Besides, there are supply side factors like increase in supply of world-class titles, games with localised content, new features such as multiplayer and social elements added to games, and an increase in investor interest at large. Few of the growth drivers are discussed below in detail:

Increasing Smartphone and Internet Penetration: Online gaming has shown robust growth on account of increase in the wireless internet users and smartphone base. Feature-rich smartphones and the focus of developers and publishers on pushing downloads of apps is likely to drive consumption of gaming. As per KPMG Report on Online gaming, smartphone users in India are expected to increase from 500 million in 2019 to 842 million in 2024. India is a data-rich market with cheaper mobile data as compared to global averages. Wireless internet users are expected to increase from 700 million to 940 million by 2024.

Adoption of digital payment methods: Increase in penetration of digital payments instruments driven by demonetisation, the Government’s focus on Unified Payments Interface (UPI) and the COVID-19 induced lockdown has contributed to the rapid growth in online payments on gaming portals. Digital payments are expected to increase at a rapid pace over the coming years. As per RBI, digital transactions could reach from Rs. 5 trillion a day in 2020 to Rs. 15 trillion a day by 2025.

Initiatives to Increase Gamer Engagement: Online gaming companies have started to incorporate various social elements such as multiplayer modes, chat functionality, leader boards, etc., specifically after the COVID-19 pandemic to increase gamer engagement.

Multi Player Formats: This format engages more than 1/3rd of India’s gamers by providing them with an opportunity for social interaction and a sense of achievement over other gamers. They are more likely to pay for games and make in-app purchases.

The rise of Indian game developers: As the Ministry of Electronics and Information Technology banned 220 Chinese-owned apps in 2020, several of which were gaming apps, it paved the way for Indian game developers to fill the gap created. As of 2020, it is estimated that there are over 400 gaming start-ups in India and around 5,527 Indian game publishers representing 3% of all are present on the Google Play Store. India is also a global talent hub for the gaming industry. With ‘AatmaNirbhar Bharat’ and ‘Make in India’, promoting Indian game developers will help India position itself as a market leader in gaming.

Growth in Investment: Various global investment firms have made significant investments in Indian gaming sector over the past 2-3 years, helping gaming companies achieve operating scale. As per KPMG, Gaming sector in India attracted investments worth US$ 544 million during Aug 2020-Jan 2021.

Technologies for immersive and accessible gaming:

New technologies help to make digital games more immersive and interactive. Augmented Reality ("AR") blurs the distinction between a virtual environment and the real world. Artificial Intelligence ("AI") helps to enhance a user’s gaming experience by personalising it. Cloud gaming technologies bring heavy software to an average user’s mobile phone. The gaming industry continues to explore new technologies for a novel game experience and increased accessibility.

Outsourcing of Game Development: India is becoming a popular back-end development centre for gaming companies due to growing pool of talented IT engineers. Gaming Backend as a Service (BaaS) is something that is being increasingly adopted by Indian developers, to diversify their revenues from pure development and publishing, to utilisation of their game engines to smaller developers in creating games.

Enhance education experience: The gamification of learning is an educational approach to motivate students to learn by using video game design (using animation and interactivity). The goal is to maximise enjoyment and engagement through capturing the interest of learners and inspiring them to continue learning.

Indian Regulations in Gaming

Gambling is a state subject in India, which means that states can implement their own gambling laws. Generally, the dominance of skill over chance decides whether it is a game of skill or not. Games of skill are excluded from most gambling laws. However, states differ considerably in their understanding of games of skill and consequent exclusion from gambling laws. This leads to confusion and puts the industry in a dilemma. It is difficult for companies to rehash online models to suit distinct state regulations, which results in loss of efficiency and business opportunity. All digital games and sports are equally affected by this issue; in particular, fantasy sports, casual games, and other e-competitions, where users have a pay-to-play option. Today, there are broadly two regulatory models in India. On the one hand, more than 14 states and union territories have adopted the Public Gambling Act 1867 ("PGA 1867"), while on the other, some states have developed their own frameworks (collectively "State Gambling Laws"). The All India Gaming Federation (AIGF) is an apex body that focusses on policy advocacy, research and forum in the online gaming industry.

India at present does not have a uniform regulatory framework to govern online games, which has resulted in lack of clarity for gaming companies and investors. However, judicial precedents suggest that game involving skill even if played with stakes would not amount to gambling. Fantasy sports are games of skill in Maharashtra, Punjab, Haryana, Nagaland and Rajasthan. A study by IIM-Bangalore and Cartesian in 2019 proved that fantasy sports is based on strategic and dominant skill using data. Poker is legal in some states and illegal in many. West Bengal, Nagaland, Sikkim and Meghalaya consider poker to be a game of skill and hence legal. In addition, various courts, including the Karnataka HC, have identified that poker requires various skills such as memorising cards, ability to read the body language of the opponent, ingenuity to drop or hold cards, and ability to bluff without detection. The legality of rummy is arguably settled in India. While most courts agree that it is a game of skill, playing rummy with money or for profit is treated as gambling in some states.

Casino games are majorly prohibited under most Gaming Enactments considering it as chance-based games and treated as betting and gambling activities. In India only two states allow casinos – Goa, and Sikkim. As per the Goa, Daman and Diu Public Gambling Act 1976, casinos can only be set up in five-star hotels or offshore vessels with the prior permission of the Government. The State of Sikkim has Land-based casinos. Goa has few land-based casinos and six floating casinos on the Mandovi River.

Industry Outlook

Gaming ecosystem is made up of

1) development,

2) publishing,

3) distribution,

4) monetisation and

5) consumption.

The COVID-19 induced lockdown in 2020, while devastating for the economy at large, helped online gaming in terms of both consumption and monetisation. A further uptick is expected owing to the lockdowns in 2021, on account of the second wave of the pandemic in India. Gaming has become an alternate form of entertainment, competing with the share of time with other forms of entertainment such as Television, OTT video, Music streaming etc. With a spike in the number of gamers in India, gaming platforms are increasingly used for marketing of products. Smart product placement can help create brand recognition among the gaming audience.

However, while consumption and interest in gaming is at an all-time high in India, the casual gaming segment is severely under-indexed in terms of monetisation, with average return per paying user (ARPPUs) amongst the lowest in the world. The monetisation models are broadly ad based and subscription based while innovating on platforms to increase audience engagement and ensure higher brand recall remains key. Most casual games now are freemium ones, where consumers could download the games for free but pay to get full access to levels, characters etc.

India is increasingly becoming a provider of skill and talent needed to develop modern games. While fantasy sports are the most loved gaming segment, local companies have come up with Indian games like rummy and teen patti. Gamers are engaging in casual as well as heavy games, giving local developers an opportunity to develop in multiple languages and pre-load these games on handsets.


The Indian tourism and hospitality industry is one of the largest industries in India. With a total contribution of over US$ 247 billion to the country’s GDP. It is the third-largest foreign exchange earner for the country. In FY 2019-20, tourism sector in India accounted for 3.9 Crores jobs, which was 8.0% of the total employment in the country.

COVID-19 outbreak dispenses a vicious blow on the hospitality industry, not only at the national level but globally too. Tourism is a big victim of the pandemic and so is hospitality sector and economy. The Government had to impose a strict lockdown, the first being travel restrictions. The travel and tourism industry was one of the worst impacted industries worldwide, and this was no different for India. During 2020, a total of 8.38 million (Jan-Nov) foreign tourists arrived on e-Tourist Visa registering a decline of -67.2%. As of March 2021, the e-Tourist Visa facility was extended to citizens of 171 countries. In the hotel segment, the key indicators including occupancy rate, average daily rate, or revenue per available room shrunk in the second half of 2020. The employment situation of millions of Indians had been negatively impacted. However, with the easing of restrictions, the travel and tourism industry in India was finally able to attract some customers again towards the festival season in late 2020.

India is one of the fastest emerging tourist destinations in the world. Government schemes like ‘Dekho Apna Desh’ had been continued even in pandemic times with a series of webinars on domestic tourist hotspots. With many western countries still following travel restrictions for travelling abroad, it will be the domestic tourists’ turn to bring the travel and tourism industry on the track to recovery in 2021. Campaigns such as Swadesh Darshan, a theme-based tourist circuit was launched to harness the tourism industry’s potential. Post the pandemic crisis, the government plans to tap into regional tourism by opening doors for South Asian country tourists.

Key growth drivers

• India has a diverse portfolio of niche tourism offerings - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural & religious tourism.

• The consistently growing middle class, rising levels of their disposable income, increasing interest among millennials to travel in their home country are a few major reasons for the growth of domestic travel industry.

• Government is providing free loans to small and medium enterprises to help them deal with the crisis and revive the economy, including the tourism sector.

• As the lockdown restrictions are now relaxed, many people look forward to revive themselves with short vacations. Staycation is also seen as an emerging trend where people stay at luxurious hotels to revive themselves of stress in a peaceful breaks and holidays.

• Digitalised guest experiences & contactless technology has gained new momentum which will drive further growth. Companies are trying to ensure convenience for their customers by providing all services available on a single portal which include outbound & inbound travel for leisure and business trips, hotel and car booking, holiday packages etc.

• The Ministry of Tourism developed an initiative called SAATHI (System for Assessment, Awareness & Training for Hospitality Industry) by partnering with the Quality Council of India (QCI) in October 2020. The initiative will effectively implement guidelines issued with reference to COVID-19 for safe operations of hotels, restaurants, and other units.

Source: IBEF

Company Overview

Delta Corp Limited (hereinafter to be referred as ‘the Company’ / ‘Delta Corp’), incorporated in 1990, is India’s leading listed casino and gaming company. The Company is also the largest organised player in the industry. It has presence across all the formats of gaming i.e. Live, Electronic and Online. The Company has established its presence in all of the casino destinations in India i.e. Goa and Sikkim. It owns and operates under both offshore and land-based licenses, supplementing the casinos with hospitality assets. The Company has been featured in Fortune India Next 500 list and has improved the rank to 321 in FY 2020-21 from 374 in previous year and 447 in FY 2018-19.

Over the years, the Company has gained deep understanding of the behaviour and journey of key demographics and users across businesses, which enable it to attract and retain users in an optimised manner. In order to establish its footprints in international market, the Company extended its geographical operations by setting up Deltin International casino at Hotel Marriott, in Kathmandu, Nepal. The operation started in February 2020.

The Company has also entered into online skill-based gaming in India and has strategically created presence in the real money gaming segment. It has forayed into online gaming in 2017 and consolidated its position in India’s gaming industry with the acquisition of ‘’, the India’s largest online poker destination. The Company has capitalised majorly on online skill-based games such as poker, rummy, and fantasy sports that can be played for real money from majority states of india. Currently, it owns and operates the online poker site ‘’; and the online rummy site ‘’.

The Company has main three business segment i.e. Casino Gaming, Online Skill Gaming and Hospitality:

1 Casino Gaming

Deltin Royale, Goa Deltin JAQK, Goa King Casino, Goa (earlier known as Deltin Caravela) Deltin Suites Casino, Goa Deltin Denzong, Sikkim Deltin Casino International, Kathmandu - Nepal
Asia’s largest offshore gaming vessel with five operational decks. 970 gaming positions, 120 live gaming tables, 4 VVIP gaming rooms, 60+ slot machines, spread over 65,000 sq. ft. Comprehensive entertainment destination with four operational decks 430 gaming positions, 50+ live gaming tables, 1 VIP gaming area, 15 slot machines, spread over 40,000 sq. ft. India’s first offshore gaming casino, re-launched in 2016, is a boutique luxury floatel. 217+ gaming positions, 32+ live gaming tables, 10+ games, spread over 25,000 sq. ft. Land-based casino in an All-suite hotel in North Goa 1,000 sq. ft. casino, 59+ gaming positions Land-based casino in partnership with Hotel Welcome Heritage. Operations have started in FY2019 on securing licence from Govt. of Sikkim 206 gaming positions, A separate VIP gaming area, spread over 15,000 sq. ft. Company owned and operate casino at the 5-star property by Marriott Hotels in Kathmandu. Received the casino licence for Nepal and launched the bookings in FY2020 220+ gaming positions, a separate VIP gaming area, spread over 15,000 sq. ft.

2 Online Gaming - Poker - Rummy
Leading online poker site. The website provides Hold’em, Pot Limit Omaha, Pot Limit Omaha 5 and Crazy Pineapple. The strategic investment by Company enable it to enhance its presence across formats and channels. Adda52Rummy was launched in 2012. It is India’s most trusted and rewarding rummy app with over 1 million registered user base. Leading player in multi-player 13 card and 21 Card Rummy game by launching high-value tables which have unique advantages such as lowest rake, minimal service charges and biggest pay-outs than any other 21 Card Rummy provider in India.

3 Hospitality

The Deltin, Daman First and only 5-star hotel in Daman, with a proposed casino 176 rooms, 3 Bars, 4 Specialty restaurants, 27,000 sq. ft. Indoor event space, 8,000 sq. ft. Retail space Deltin Suites, Goa All-suite hotel in North Goa with integrated casino 106 rooms, 24*7 Vegas restaurants, Whiskey Lounge Bar, Gym and Spa

SWOT Analysis


• Industry leader with high brand equity

• Leadership position in key geographies viz. Goa, Daman

• First mover advantage in highly attractive locations

• Strong & diversified portfolio of online games platforms, mass and class client base, etc.

• Debt-Free Balance Sheet

• Successful inorganic growth through strategic acquisitions


• Geographical concentration of business

• Need to operate non-core hospitality business

• Licence restrictions and limitations as gaming licenses are not provided by the regulatory authorities in too many locations


• Online skill-based games are recording accelerated growth - New millennials choice

• Gaining social acceptance of gaming in India

• New licences / Geographies

• Under-penetrated Indian market


• Adverse changes in regulations

• Stiff competition in online gaming business

• Being discretionary spend sector, lower demand in case of economic degrowth

• Further delay in Daman casino licence due to regulatory hurdles

Financial Review

Financial Snapshot - Consolidated basis

(Rs. in Crores)

Particular 2020-21 2019-20 YoY Change
Casino Gaming 309.38 737.01 -58.02%
Online Skill Gaming 183.37 162.14 13.09%
Hospitality Division 22.77 69.29 -67.14%
Gross Revenue 515.52 968.44 -46.77%
Less: GST included above 89.85 173.22 -48.13%
Less: Inter Segment Revenue 6.80 21.81 -68.82%
Net Revenue 418.87 773.41 -45.84%
Other Income 35.46 33.34 6.36%
Total Income 454.33 806.75 -43.68%
EBIDTA 48.48 309.13 -84.32%
PBT (before exceptional items and tax) (9.62) 255.54 -103.76%
Exceptional Item (8.96) 0.70 -
PBT (after exceptional items and tax) (18.58) 256.24 -107.25%
PAT (24.10) 185.63 -112.98%

• Revenues in the Casino Gaming segment declined by 58.02% to Rs. 309.38 Crores in FY 2020-21 as against Rs. 737.01 Crores in FY 2019-20. The decline was primarily due to COVID-19 induced lockdowns and restrictions which led the Company to suspend its casino operations from April 2020 till October 2020. However, in second half of FY 2020-21, the Company got some relief as Casino operations at Goa and Sikkim have been permitted at 50% capacity from 1st November, 2020 onward.

• The online skill gaming segment continued the growth trend, generated revenues of Rs. 183.37 Crores in FY 2020-21 as compared to Rs. 162.14 Crores in FY 2019-20, achieving 13.09% growth during the year. This is mainly due to soaring digital adoption and multiplying online population.

• The hospitality segment revenues declined by 67.14% to Rs. 22.77 Crores in FY 2020-21 as compared to Rs. 69.29 Crores in FY 2019-20 due to low tourists visitations, on account of COVID-19 led restrictions.

• EBIDTA margin has declined to 10.67% in FY 2020-21 as compared to 38.32% in FY 2019-20, due to non-operation of casino and hotels during the period under review.

• During the year under review, the Company reported an exceptional Item of Rs. 8.96 Crores which represent additional amount paid to non_voting class equity shareholders of a subsidiary company on account of settlement of winding up proceedings and other related disputes.

• Consequently, the Company reported net loss of Rs. 24.10 Crores in FY 2020-21 as compared to net profit of Rs. 185.63 Crores in FY 2019-20.

• The Group remained debt-free as on 31st March, 2021. The cash and cash equivalents including mutual fund investment is at Rs. 474.57 Crores as on 31st March, 2021.

• RoNW stood at -1.24% as on 31st March, 2021 as against 9.50% on 31st March, 2020.

Details of Key Consolidated Financial Ratios that registered more than 25% change during FY 2020-21

31st March

Ratios 2021 2020 (%)
Debtors Turnover 201.38 207.91 -3.14%
Inventory Turnover 3.76 7.62 -50.64%
Interest Coverage
Ratio (0.77) 51.50 -101.49%
Current Ratio 4.67 5.87 -20.34%
Debt Equity Ratio 0.11 0.10 18.57%
Operating Profit
Margin -9.46% 29.38% -132.21%
Net Profit Margin (%) -5.75% 24.00% -123.97%
Return on Net Worth
(RoNW) -1.24% 9.50% -113.07%

• The Company’s performance was impacted by COVID-19 pandemic in FY 2020-21 with the operations remained shut down for more than half of the year. Hence, there are significant changes in all major ratios.

• Turnover ratios including debtor and inventory turnover ratios deteriorated significantly in FY 2020-21 due to sharp decline in net sales by 45.84%.

• Operating profit margin deteriorated as the decline in revenue was more than the decrease in operating expenditure.

• Interest coverage ratio deteriorated as the Company reported loss at EBIT level amounting to Rs. 4.18 Crores in FY 2020-21.

• The loss at EBIT level was further elevated by exceptional loss of Rs. 8.96 Crores, which led to significant decline in net profit margin and negative return on Networth.

Detailed explanation of Ratios Debtors Turnover

The above ratio is used to quantify a Company’s effectiveness in collecting its receivables or money owed by customers. The ratio shows how well a Company uses and manages the credit it extends to customers. It is calculated by dividing turnover by average trade receivables.

Inventory Turnover

Inventory Turnover is the number of times a Company uses and replaces its inventory during a period. It is calculated by dividing turnover by average inventory.

Interest Coverage Ratio

The Interest Coverage Ratio measures how many times a Company can cover its current interest payment with its available earnings. It is calculated by dividing PBIT by finance cost.

Current Ratio

The Current Ratio is a liquidity ratio that measures a Company’s ability to pay short-term obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.

Debt Equity Ratio

The ratio is used to evaluate a Company’s financial leverage. It is a measure of the degree to which a Company is financing its operations through debt versus wholly owned funds. It is calculated by dividing a Company’s total liabilities by its shareholder’s equity.

Operating Profit Margin (%)

Operating Profit Margin is a profitability or performance ratio used to calculate the percentage of profit a Company produces from its operations. It is calculated by dividing the EBIT by turnover.

Net Profit Margin (%)

The net profit margin is equal to how much net income or profit is generated as a percentage of revenue. It is calculated by dividing the profit for the year by turnover.

Return on Net Worth (RoNW)

Return on Net Worth (RoNW) is a measure of profitability of a Company expressed in percentage. It is calculated by dividing total comprehensive income for the year by average capital employed during the year.

Impact Reporting on COVID-19 on Business Performance

Due to COVID_19 pandemic and the consequent lockdown announced by the Government of India, the operations of the Company were suspended since the third week of March 2020 till 30th October, 2020. Casino operations at Goa and Sikkim have been permitted at 50% capacity from 1st November, 2020 onwards. The hotel operations at Daman have gradually resumed since the "Unlock 1" (1st June, 2020). Both, casino and hotel businesses have witnessed a good growth in revenue in the fourth quarter of the current year.

The Company and the entire casino industry in Goa have made a representation to the Government of Goa, seeking a waiver / reduction / proportionate payment mechanism casino licence fees for the period of shut down i.e. from 1st April, 2020 to 31st October, 2020. Due to the pandemic situation, the stress on the operations and the representations made, the management is hopeful that the Government of Goa may consider its request, favourably.

The management has also evaluated the possible impact of this pandemic on the business operations and the financial position of the Company and no material adverse impact has been found. The second wave of COVID-19 may hit the operations of the Company, especially the lucrative gaming business based out of Casinos in Goa. However, the Company is debt-free and would have adequate liquidity available to honour its liabilities and obligations, as and when due. The management will continue to monitor any material changes to its COVID_19 impact assessment, resulting from the future economic conditions and future uncertainty, if any.

Risk Management

Regulatory Risk: The Company is exposed to variety of laws and regulations. Increased regulatory oversight and adverse changes to regulations in key markets could adversely impact the Company’s business operations. Further, any violation or non-compliance of standards could lead to the revocation or suspension of licenses, imposition of fines and criminal sanctions.

Mitigation: In the past few decades, the Company has established a long-standing relationship and two-way communication with local government and authorities to ensure any new law or any amendment in existing law is adequately addressed. The Company always ensure adherence to all regulatory requirements and maximum care is taken by the statutory compliance management system.

Competition Risk: The Company faced competition from both new as well as existing players on the market. The Company might receive stiff competition from its peers in terms of new market entrants with better technology or change in marketing strategy by the competitors.

Mitigation: Over the years, the Company has developed strong brand recognition with abundant experience and supremacy in the gaming industry. Delta Corp is the most preferred trade partner owing to its heritage, high-quality content, development staff, technology stack and data analytics capabilities, scope and quality of product and service offerings, user experience, and brand recognition. The Company continuously strive to stay ahead by enhancing user experiences and engagement through new content and features and increased social interactions.

Acquisition-related Risk: An acquisition which may prove to be an enormous task for merger and alignment of the two businesses involve uncertainties and risks. Any failure to address such risks may have a material adverse effect on the Company’s financial condition, results of operations and cash flows.

Mitigation: The Company has been successful in selectively identifying strategic acquisition and investment targets in the past. In order to make the acquisition process more unbiased, the Company has a meticulous evaluation benchmark in place. The Board finalises the decision based on clearly determined principles significantly minimising the likelihoods of any misfit.

Sector concentration Risk: Over dependency on only one sector or one state leads to increased risk of profit.

Mitigation: The Company’s core business is gaming. It has also added gaming-related hospitality in its portfolio. Delta Corp has further diversified its operations into online gaming space so as to be able to reach out to a large clientele of international gamers. The Company had reduced dependence on one state for business by expanding its operations in Sikkim, Nepal and Daman other than Goa. The properties are made to cater the necessities of the entire family making Delta properties for weekend breaks.

Wage Inflation Risk: Human capital is one of the key costs for the Company, which could see an unprecedented upswing in case of high and unexpected inflation in wages.

Mitigation: The Company engages in long-term work contracts/agreements with employees to ensure visibility of wage costs. The role and contribution of the employees has been crucial for the Company in maintaining and strengthening its leadership position. Delta Corp has demonstrated ability to attract, develop and retain a diverse range of skilled people. It ensures that workers’ personal ambitions are well integrated with organisation’s objectives. The Company strives to have high retention rate by implementing best practices for its staff, competitive pay scale and delivering rigorous training across all levels to ensure organisational success.

Internal Control Systems

The Company is responsible for establishing and maintaining adequate internal control measures commensurate with the size and complexity of operations. The policies and procedures are designed to ensure sound management of operations, safekeeping assets, optimal utilisation of resources, reliability of financial information and compliance. The internal control system is periodically reviewed and routinely tested covering all functions and business areas. The management reviews the internal control systems and the Internal Auditors conduct periodic audits. The Audit Committee reviews the reports of internal auditors and corrective measures have been implemented to ensure the robustness of internal controls. The Board recognises the reports of the auditors, as an independent check on the information received from the management on business operations and performance.

Cautionary Statement

This report contains statements that may be ‘forward-looking’ including, but without limitation, statements relating to the implementation of strategic initiatives and other statements relating to Company’s future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events or circumstances.