Daijiworld Media Network – Panaji
Panaji, Sep 5: The next-gen GST reforms announced by the GST Council may have brought relief to many sectors, but Goa’s thriving casino industry is reeling under shock, with industry executives warning of a severe hit to operations, jobs and revenues.
The Council has imposed a 40% GST slab on luxury and demerit services, covering casinos, betting, lotteries, horse racing, gambling, IPL match admissions and online money games.
Delta Corp chairman Jaydev Mody said the levy would make the entire sector “unviable.” He warned it would impact thousands of jobs, hurt tourism in Goa, reduce state revenues and render redundant huge investments already made in casino infrastructure.
Following the announcement, Delta Corp shares plunged 8% in Thursday’s trade. The company, which operates casinos under the Deltin brand, has also reportedly halted its Rs 2,000–2,500 crore integrated resort-cum-casino township project at Mopa.
Executives from offshore casinos admitted the tax hike will likely reduce footfalls among mid-tier players, though the premium clientele may not be as affected.
The industry is already battling retrospective GST demands of Rs 33,500 crore from the Centre, which Delta Corp has challenged in the Supreme Court. The key issue before the Apex Court is whether GST should apply on the gross bet value (GBV) — the total amount wagered — or on the gross gaming revenue (GGR), i.e., the actual earnings of casinos. A ruling is awaited.
With the new 40% GST slab, insiders fear the sector may face its worst-ever crisis, putting Goa’s casino-driven tourism economy under severe strain.