• India’s economy is having a good time. And so are its people – eager to find newer ways to unwind and celebrate. At Delta Corp Limited (Delta), we are committed to ensuring their search for entertainment leads to exciting avenues, from high-end casinos and leisure travel to online gaming from the comfort of their homes.
  • With the rise in internet adoption in the country, we have driven significant efforts into building an online presence, by developing the fantasy sports genre, which has already found good traction during the IPL, and by also launching an online rummy platform.
  • Delta Corp Limited (Delta) is the largest and the only listed gaming company in India. Entering the gaming business in 2008, the Company has captured a lion’s share of the Indian gaming market through its five casinos in Goa and Sikkim. It owns three of the six offshore and one onshore gaming licence in the state of Goa. The Company currently offers approximately ~1,800+ gaming positions in Goa and Sikkim.
  • In addition, Delta has also ventured into the fast-growing online gaming space through the acquisition of Gauss Networks Private Limited, which operates the online poker site, Adda52, India’s largest skill-based online poker platform. The Company is also carving a niche in Daman through its integrated casino resort, which is awaiting regulatory approval, with approximately 1,000+ gaming positions.
  • We operate three live offshore casinos in Goa, namely Deltin Royale, Deltin Jaqk and Deltin Caravela. We also operate an electronic (onshore casino) in our hotel, Deltin Suites, in Goa; and a live onshore casino called, Casino Deltin Denzong, in Sikkim. All the five casinos have commenced operations pursuant to the respective licences granted by the appropriate regulatory authorities. We offer a wide variety of games in our casinos, including slot machines, roulette, baccarat, blackjack, Caribbean stud poker, Texas hold’em poker and flush. Our luxurious properties also offer multicuisine dining experiences in a multitude of restaurants and bars.
  • To support and complement our gaming business and intensify growth, we have integrated and embedded our hospitality business with our gaming operations. We currently own and operate two properties in Goa – Deltin Suites and Deltin Palms. We also own and operate a hotel in Daman, The Deltin. Moreover, we have a 33.77% stake in Advani Hotels and Resorts (India) Ltd., the holding company of Ramada Caravela Beach Resort in Goa, with no operational interest or management control.
  • We entered the online gaming business by acquiring Gauss Networks Private Limited, which owns Adda52. The acquisition will provide impetus to business and growth synergies, as well as financial strength and flexibility. It will also help expand the customer base and market penetration. Adda52 has a significant poker market share of over 60% across India. This online gaming website offers rummy and fantasy league, along with poker. Through this venture, we expect the synergies to come into play and help enhance player acquisition for both rummy and fantasy league.
  • While we spoke about moving towards new horizons last year, this reporting year the focus has been on breaking all barriers to move to greater heights of success. We evolved from being an offline player to a digital one. We are looking not just at linear growth but are clearly moving to higher orbits in leaps and bounds.
  • Our success is backed by our casino business and we are replicating this success in other domains by expanding to more destinations and transitioning from offshore to onshore properties. Hospitality, which has always been complimentary to our main gaming business, continues to support and strengthen our core proposition.
  • Delta’s gaming business has grown swiftly, with revenue rising by 45% over the past five years. This growth is likely to accelerate with the launch of the Daman operations. The addition of new properties and increased traffic are likely to boost top-line and bottom-line growth significantly. Additionally, Indian demographics leading to consumption explosion, higher level of urbanisation, increase in discretionary spending and the shift from illegal forms to organised gambling portend well for the Company.
  • Since the launch of our casino business in 2008 in Goa, we have gained entry into the gaming business in Sikkim. We operate Casino Deltin Denzong located in Denzong Regency Hotel in Gangtok, Sikkim. We intend to enter into similar arrangements with other hotels, operating casinos on their premises. This will give us the advantage of accessing a pre-established setup and focusing on the gaming business. Further, we have also applied for a gaming licence for The Deltin, Daman. The casino, when operational, is expected to be India’s largest integrated casino resort. Our vision is to create something India has never seen before – a Vegas- like setup where players have the finest entertainment, food, fashion, music and shows and the best of the casinos. The setting up of an entire ecosystem focused on entertainment would significantly improve tourism and reap more investments. This will also lead to increased scale by providing Delta’s casinos exposure to a larger set of potential visitors.
  • The new Gaming Policy proposed by the state of Goa is also expected to bring several positive changes. Onshore casinos are far easier to scale up, as well as more stable from a business perspective and offer significant cost benefit.
  • At Delta, we constantly strive to improve and increase our leadership in live casino. We continue to focus on growth and deliver the best possible experience to both our business customers and their end users. With investments being made in the form of entering new markets and properties, I am convinced that the Company has an exciting future in the works.
  • The Goa government is soon expected to announce a formal casino policy. It is likely to make it mandatory for all offshore casino operators to shift to land within three years. The state will propose to designate as an Entertainment Zone where the casinos are expected to move. Area around the new airport could be one of such option.  We have acquired 100 acres of land and are looking to acquire additional approximately 50 acres of land for an entertainment destination or a recreation zone.
  • We are levelling up our involvement in online gaming segment by introducing rummy and Fantasy League, thus offering a bouquet of options to customers in the online gaming space. We have set up a full-fledged back office for rummy in Bangalore and plan to launch the beta version of Fantasy League in 2019. Our focus is to improve software, develop strong back-end support and set up a call centre for online gaming. After this is streamlined, we will take the platforms to users by investing significantly in player acquisition, marketing, schemes and bonuses.
  • We launched Daman’s only 5-star hotel, The Deltin, in March 2014. We have applied for a gaming licence and an approval for the same is awaited. After the casino is operational, The Deltin will be India’s largest integrated casino resort. Daman is located on the Mumbai- Ahmedabad route and the casino resort is thus likely to witness major footfall from these neighbouring cities. The casino is spread over 60,000 sq. ft. and has about 1,200 gaming positions.

Delta Corp Annual Report 2018

My note: The annual report is an interesting read on the casino industry. Business carries a risk of regulatory issues but also has significant entry barriers. Annual reports of various gaming companies in US are a good read for understanding the business as well.

 

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