Gambling in India involves risking money or valuables on uncertain events with the aim of winning more. It requires three core elements: a stake, risk, and potential reward. Betting, a subset of gambling, typically focuses on predicting outcomes in sports or events and is often associated with knowledge or skill. While gambling can include games of chance, betting tends to be more specific, relying on the ability to predict results. Despite their differences, both activities involve risk and financial gain, with betting being a more narrowly defined form of gambling.
Legal Framework for Gambling in India
In India, gambling is largely regulated by state and central laws, with each state having the authority to legalize and control gambling within its jurisdiction. The Public Gambling Act of 1867 serves as the primary law governing gambling in the country. However, this legislation was enacted long before the advent of online gaming and betting, leading to confusion regarding online platforms. While sectors like lotteries and horse racing are legally allowed, casino games and online betting face significant restrictions. This regulatory ambiguity makes it difficult for the Indian government to manage online gambling activities effectively, particularly as many foreign-registered platforms operate beyond its reach.
Recent Update
Gaming stocks saw a significant rise after the Supreme Court issued a stay on the GST demand, halting a show cause notice worth ₹1.12 lakh crore. Nazara Technologies saw an 11% jump, while Delta Corp surged by 17%. The Supreme Court’s intervention provides relief to these gaming companies, which had been facing potential tax liabilities due to the demand for backdated GST payments.
This decision has sparked positive investor sentiment, as it reduces uncertainty around the gaming sector’s tax obligations. The stay on the GST demand allows these companies to continue their operations without the immediate pressure of large tax liabilities, boosting their stock prices. Market analysts are closely watching how this development will impact the gaming industry moving forward.
Nazara Technologies Limited
Share Price
The shares of Nazara Technologies Ltd are currently trading at Rs. 984.65 down by 0.63% from its previous close of Rs. 990.85, although the stock hit an intraday high of Rs. 1,077 the stock gave up all its gain and is currently trading in red as of January 10, 2025.
Financial Outlook
Nazara Technologies Ltd. reported a modest increase in sales for September 2024, rising from ₹297 crore in September 2023 to ₹319 crore, a growth of 7.4%. However, EBITDA decreased from ₹27 crore to ₹24 crore, a decline of 11.1%. The company’s operating profit margin (OPM) also fell from 9% to 8%, a drop of 1 percentage point, while net profit decreased from ₹24 crore to ₹16 crore, representing a 33.3% decline. Despite higher sales, the company’s profitability and margin were impacted in this period.
About the Company
Nazara Technologies, founded in 1999, is a leading mobile gaming and sports media platform based in Mumbai, India. With a workforce of over 500, the company has evolved into a diverse gaming powerhouse. Nazara’s portfolio includes interactive gaming, and eSports through popular brands like the World Cricket Championship, CarromClash, Kiddopia, Nodwin, and Sportskeeda. The company has also entered the real money gaming sector with Classic Rummy.
Delta Corporation Limited
Share Price
The shares of Delta Corporation Limited are currently trading at Rs. 119.36 up by 5.35% from its previous close of Rs. 113. The stock also hit an intraday high of Rs. 131.2 thereby rising 17% at one point as of January 10, 2025
Financial Outlook
Delta Corp Ltd., on the other hand, experienced a significant decline in sales, dropping from ₹261 crore to ₹188 crore, a reduction of 28%. EBITDA also saw a sharp fall, from ₹100 crore to ₹34 crore, a decrease of 66%. The company’s OPM dropped from 38% to 18%, a fall of 20 percentage points, reflecting a significant decline in operational efficiency. Net profit also fell from ₹69 crore to ₹27 crore, a decline of 60.9%. Delta Corp faced challenges leading to a considerable drop in both its top and bottom lines.
About the Company
Delta Corp Limited, established in 1990, is India’s sole listed casino operator. Headquartered in Mumbai, the company has carved a niche in the gaming and hospitality sector. Delta Corp operates three offshore gaming vessels on the Mandovi River in Goa, an all-suite hotel with an onshore casino in north Goa, an integrated resort in Daman, and land-based casinos in Sikkim and Nepal. Moreover, the company has diversified into online gaming with adda52.com, expanding its reach in the digital realm.
Written By: Dipangshu Kundu
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