Breaking: Online Gaming Act wipes out nearly ₹460 crore from Delta Corp’s balance sheet
Delta Corp, which had earlier diversified into online gaming through Deltatech (formerly Adda52), had already sold a 51% stake in the company earlier this year, booking a one-time gain of ₹130.49 crore.
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Delta Corp Ltd, India’s largest listed gaming and hospitality company, has reported a massive markdown in the value of its investments following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits real-money online games across the country.
According to the company’s financial results for the quarter and half-year ended September 30, 2025, the new law has forced Delta Corp to write off investments worth ₹378.34 crore on a standalone basis and ₹459.52 crore on a consolidated level.
The Act, which received Presidential assent on August 22, 2025, bans all online gaming platforms that involve “real-money stakes,” effectively bringing India’s fast-growing online poker, rummy, and fantasy sports industries to a halt.
Delta Corp, which previously held significant equity in online gaming ventures such as Deltatech Gaming Ltd, Head Digital Works Pvt Ltd, and OpenPlay Technologies Pvt Ltd, said these businesses’ “sole line of revenue-generating activity has been completely halted.” Consequently, the carrying value of these investments has been reduced to nil in its balance sheet.
“The enactment of the Online Gaming Act has resulted in a complete cessation of revenue from these entities, leading to a full reduction in their fair value,” the company stated in its financial notes.
The company’s auditors, Walker Chandiok & Co LLP, drew attention to this development in their review report, noting that while the accounting treatment was appropriate, it represented a significant non-cash hit to Delta’s net worth.
Delta Corp, which had earlier diversified into online gaming through Deltatech (formerly Adda52), had already sold a 51% stake in the company earlier this year, booking a one-time gain of ₹130.49 crore. The remaining 49% holding was subsequently written down to zero due to the new regulatory regime.
Even as its digital arm faces collapse, Delta’s core casino and hospitality operations—primarily in Goa and Sikkim remain unaffected. For the September quarter, the company reported standalone revenue from gaming operations at ₹122.74 crore, compared to ₹136.06 crore a year ago.
However, the sharp fair-value loss pulled the company’s total comprehensive income into negative territory, resulting in a consolidated loss of ₹396.15 crore for the quarter, despite reporting operational profits.
The company clarified that no deferred tax assets have been recognized on the investment write-offs, citing uncertainty over future capital gains to offset such losses.
The financial impact marks the latest regulatory headwind for Delta Corp, which remains under scrutiny for alleged short payment of Goods and Services Tax (GST) amounting to more than ₹28,000 crore across group entities. The company has contested the demand and obtained interim relief from courts, with the matter now reserved for judgment by the Supreme Court.
Delta Corp’s total income for the September quarter stood at ₹183 crore from ₹182 crore a year earlier. Profit before tax fell to ₹25 cr crore, compared with ₹27 crore in the corresponding period last year. The impact of 40% GST on sin goods such as casinos seems to have been impacted the company's EBITDA margins as it dropped to 40 cr from 49 cr. A drop from 26.7% EBITDA margin to 21.7%. The full impact of 40% GST on sale of casino chips will be seen in the ongoing quarter.
