Major Casino Operator Unable to Predict Business

The Covid-19 global situation is a game changer for virtually all economic players. Some are struggling and trying to navigate through the unknown, while others are enjoying the boost of fresh opportunity.

According to Deltin Group CEO, Anil Malani, it would be too difficult to predict attendance rates after the corresponding state governments allow casinos to reopen. Actual footfalls would depend on many factors, including future government stipulated rules such as capacity restrictions and travel regulations, and the general public sentiment.

The casino operator company has successfully vaccinated its 2,500-strong staff and is ready to conform to all health regulations and safety norms envisioned by the authorities. The chief executive officer hopes India’s mass vaccination program will serve to avoid a third wave of Covid-19.

Coronavirus’ Second Wave Is Releasing Its Grip

India’s Ministry of Health and Family Welfare is reporting the world’s second highest number of total coronavirus infections, which is approaching 32 million. The second wave of Covid-19 spearheaded by the Delta and Delta plus variants brought peak levels exceeding 4 lakh new cases on a daily basis during the months of April and May 2021.

After mid-May, the influx of new cases started to drop down; and by July they were already around 10 per cent of spring’s record-breaking numbers. At the same time, India’s vaccination campaign that had slowed down in May, has sped up and is approaching 40 crores of people, even though fully vaccinated are a little bit more than 10 per cent of Bharat’s 95 crore eligible adult population.

Pre- and Post-Pandemic Reality

Before Covid-19, Indian casino industry was expanding with a growth rate of 30 per cent per annum. Daily number of visitors were reaching 15,000 just within the state of Goa in the late 2010s.

In financial terms, the last full pre-pandemic fiscal year of 2018-2019 brought ₹ 414 crore in tax and license fee revenue to the Goan state from the casino industry, marking a growth of 25.5 per cent from the ₹ 330 crore received for the preceding financial year of 2017-2018.

Currently, Delta Corp Ltd starts a second year with a first quarter consolidated net loss exceeding ₹ 28 crore (₹ 28.24 crore for Q1 FY 2020-2021 and ₹ 28.93 crore for Q1 FY 2021-2022). The quarter marked by the first coronavirus wave (Q1 FY20-21) brought net sales of ₹ 48.34 crore to the company. The second wave’s quarter (Q1 FY21-22) allowed a revenue increase of 57 per cent to ₹ 75.87 crore, but still a drop of 64.1 per cent from Q4 FY20-21’s ₹ 211.34 crore.

Online Industry Paints a Different Picture

Unlike their brick-and-mortar counterparts, roulette casinos online are benefiting from Covid-19 restrictions. Recently published statistics collated by companies in the online gaming sector suggest that real money gaming (RMG) has grown multiple times during the pandemic

One of the operators, Big Cash, witnessed a growth of 300 per cent in the number of monthly users in the 35 plus age bracket. In February 2020, just a month before Covid-19 came into existence, the company recorded 20,000 players above 35, and in May 2021, their number had risen to 90,000. The group of 25 to 34 year-olds also increased, but the younger players’ (18-24 years of age) relative contribution fell from 55 to 51 per cent.

Nevertheless, the participation of youngsters from small cities in rural areas is much higher than that of metro and big city young gamers.

In the overall, the pandemic has brought a 50 per cent increase in turnover for the online gaming industry, including casual game platforms and casino operators like PureWin. On a national level, the average time spent playing has increased from 2.5 hours pre-Covid to 4.1 hours post-Covid.