Delta Stocks Down on Merger Talk

Sat, Apr 22, 2017

Shares of Delta Corp., India’s only listed casino group, recently dropped 17 percent on speculation that the Indian government will merge the coastal union territory of Daman with neighboring Gujurat.

Gambling, drinking banned in Gujurat

Delta Corp., India’s sole listed casino group, experienced a recent 17 percent drop in share values on the Bombay Stock Exchange, reported the Asia Gaming Brief. The decline, which followed a 52-week high on April 5, has been linked to rumors that the government may try to merge the coastal union territory of Daman with neighboring state of Gujarat. Such a merger would hurt Delta’s casino business in Daman, as both gambling and drinking are banned in Gujurat, AGB reported.

Prime Minister Narendra Modi is reportedly behind the merger, the Economic Times reported.

The publication cited a Mumbai analyst who reportedly said the merger of Diu and Daman with Gujarat “could weigh on casino operations” in the UTs. Delta currently owns a 176-room, five-star integrated resort in Daman and was planning to open a casino with approximately 1,000 gaming positions.

The company also holds three gaming licenses in Goa and operates three casino ships there under the Deltin brand with more than 2,000 positions.

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