Goa is poised to become one of Asia gambling industry’s crown jewels under a new regulation that will bring an end to floating casinos, according to international brokerage Union Gaming.
Union Gaming made this prediction days after Goa’s Chief Minister Manohar Parrikar announced that the Indian state will publish formal casino regulations by the end of August, including the transfer of floating casinos on land.
Analyst Grant Govertsen described Goa’s latest casino policy to be “transformational” since these high-quality integrated resorts that the government is pushing for will firmly put India on the gaming map.
Goa’s estimated gross gaming revenue is currently estimated at $200 million. If the planned IRs in Goa will push through, Govertsen predicts Goa to become a billion-dollar market overnight.
“[Goa] is growing rapidly due to strong demand on the heels of exceptional growth in domestic tourism. However, we have long believed that the true potential of Goa (and India) cannot be reached until there is high quality supply,” the Union Gaming analyst said.
It will also be a “transformational” one for casino operator Delta Corp. Ltd., which holds at least three floating casino licenses, according to Govertsen. He pointed out that Delta holds the biggest advantage against its competitors in Goa since the government plans to award IR licenses to those casino operators who have existing floating casino licenses.
Govertsen also noted that Delta Corp. is already “light years” ahead of its competitors in terms of being in a position to deliver world-class integrated resorts. He said Delta Corp. purchases a large site located near Goa’s already-under-construction new airport and was now underway in terms of planning the site with a world-renown gaming architect.
In July, Delta Corp. announced that its net profit skyrocketed by 85.7 percent to Rs 41.4 crores (US$7.67 million) in the first quarter of FY19 from Rs 22.3 crores ($4.13 million) in the same period during the previous fiscal year. Its casino gaming division revenue grew by 52.7 percent year-on-year to Rs 176.7 crore ($32.72 million).
The company cited several factors why its net profit almost doubled, including the rise in the number of people going to their casinos, as well as prudent spending that kept a lid on Delta’s financial costs.
The post Union Gaming: High-quality IRs to put India on the gaming map appeared first on CalvinAyre.com.
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