Delta Corp backpedals on India IR project, citing tax concerns

Summary

Mumbai-based Delta Corp has paused plans for a proposed integrated resort-casino (IR) development in Dhargal, Goa, after reports that the Indian government may raise the goods-and-services tax (GST) on casinos from 28% to 40%. The planned 36-hectare resort, pitched as India’s first integrated resort and budgeted at up to ₹2,500 crore (around US$285m), was due to open in 2027 and could have created about 10,000 jobs.

Delta’s chairman Jaydev Mody warned that a 40% GST would render the sector unviable, hit visitation, put jobs at risk and wipe out prior capital expenditure. The company says the project remains part of its long-term strategy but will move forward only once tax clarity and Goa’s land policy are resolved. The move comes amid other regulatory headwinds, including litigation over land use and parliamentary action on real-money iGaming, which has previously affected Delta’s share price.

Key Points

Delta Corp has suspended construction of a planned integrated resort-casino in Dhargal, Goa, citing potential GST increases.
The proposed GST hike to 40% (from 28%) is the primary reason for pausing the project; Delta says it would make the sector unviable.
The IR was planned on 36 hectares with an estimated ₹2,500 crore investment and projected to create around 10,000 jobs.
Legal challenges over using agricultural land and an unresolved Goa land policy remain other obstacles to the development.
Delta says the project is on hold pending clarity on GST and land policy, not abandoned; the company retains it in long-term plans.
Delta’s shares have shown volatility recently after regulatory moves on iGaming and news around the Goa project.

Content summary

Delta Corp’s ambitious plan for India’s first integrated resort-casino in Goa has been put on hold after reports the central government may impose a 40% GST on casino operations. The company’s chairman argues such a tax would undermine commercial viability, damage tourism and cost jobs. The planned development included hotels, convention facilities, retail and a theme park, and was slated to open in 2027. Pending litigation over land use and an unsettled Goa land policy add further uncertainty. Delta says it will revisit the project only when tax and policy positions are clear.

Context and relevance

This story matters for investors, operators and policymakers in land-based gaming, tourism and regional development. A GST rise to 40% would materially alter project economics across the Indian casino sector, affecting future investment decisions, employment projections and state revenues from tourism. It also highlights the wider regulatory risk in India’s gambling market, where both tax policy and legal challenges can swiftly reshape business plans.

Author style

Punchy: this is more than corporate rhetoric. A sizeable GST change is a live pivot point for the Indian gaming market and will influence whether large-scale resorts are feasible. If you track gaming investments or regional tourism policy, the detail matters.

Why should I read this?

Short version: if you’re connected to Indian gaming, hospitality investment or regional tourism, this is a proper headache. Delta’s decision shows how one tax tweak can freeze multi-hundred-million-rupee projects, threaten jobs and shift investor appetite. We skimmed the article so you don’t have to — but if this impacts your deals or forecasts, dig into the full piece.