Ace investor Rakesh Jhunjhunwala-backed casino and hospitality firm Delta Corp doesn’t expect Karnataka’s recent gambling ban to have an impact on its online skill gaming operations.
Delta Corp currently operates an online poker site Adda52 and rummy platform Adda52Rummy through its subsidiary Gaussian Networks. Earlier this year, it launched a multi-game destination called Adda Games that offers fantasy sports and card games.
Moneycontrol was the first to report on October 6 that several gaming platforms including Adda52, MPL, Games24x7 (RummyCircle, My11Circle), Ace2Three, and RummyCulture among others started blocking access to residents in Karnataka after the state government notified the online gambling law with immediate effect on October 5. Fantasy sports major Dream11 also suspended operations on October 10 .
Several of these gaming platforms have approached the Karnataka High Court appealing against the state’s online gambling law, Moneycontrol reported on October 10.
Responding to a shareholder query on the impact of Karnataka’s recent gambling ban and share of online revenue from the market at the company’s earnings conference call on Tuesday, Delta Corp group CFO Hardik Dhebar said, “I don’t think we have a contribution of more than 7-10% at best (to Adda52). It’s not a large number that we are looking at from Karnataka at this point of time.”
Growth of online skill gaming business
Online skill gaming has been a key growth area for the company in recent quarters, as the company’s core businesses like its casino and hospitality business was severely impacted by COVID-19 induced lockdowns due to which it had to suspend operations for several months this year and last year.
For the September-ended quarter (Q2-FY22), Delta Corp earned Rs 40.45 crore through its online skill gaming operations, down 9.3% from Rs 44.59 crore in the corresponding quarter last year. The segment however posted a loss of 0.08 crore during the quarter, as compared to a profit of Rs 1.27 crore in the same quarter last year.
For the full financial year ended March 2021 (FY21), Delta Corp had generated revenue of Rs 183.37 crore from its online skill gaming business, registering a 13.09% growth from Rs 162.14 crore in FY20. […]
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