Recent tweets suggesting that Delta Corp had been granted a license for casino operations in Daman resulted in the company issuing a denial. The Indian gaming and hospitality company, formally known as Arrow Webtex, acted quickly to say it had not received any communication about its license application.
The issuing of the denial was an unfortunate necessity for the company as it had a negative impact on its share price. Unfortunately, there was no way of avoiding these complications once the erroneous tweets had surfaced.
Why the denial was issued
The fact is that Delta Corp Ltd had no option but to deny it had been licensed for casino operations in Daman and Diu. The denial filing submission was necessary in order to correct information provided by an unknown source about the issuing of a license to the organization.
In the denial, the company said,
“…Please note that neither the Company nor its subsidiaries have received any communication from the U.T. Administration of Daman and Diu regarding grant of any such license, and we cannot verify the authenticity of such claims.”
It must have been difficult for Delta Corp Ltd to issue the denial, given that its shares spiked up by eight percent following the original tweets. However, correcting the information contained in the tweets could not be avoided as it was fake news that was likely spread by stock market analysts.
Unfortunately, the correction resulted in the value of Delta Corp Ltd shares plunging. They fell by over 4.7%.
The wait for a license has been a long one
It’s understandable that people were willing to accept the information contained in the tweets about Delta Corp Ltd, given the length of time the company has been waiting for a casino license in Daman.
The company, which already operates offshore casinos and casino hotels in Goa, Sikkim, and Nepal, first filed a writ petition with the High Court in Bombay in December 2018. It took this action in an attempt to receive a casino license four years after buying The Deltin five-star resort with the intention of opening a casino there.
During the period that has followed this initial filing there have been three or four hearings about the application. Interested parties are awaiting the commencement and completion of the argument of the administration of Daman. So, there is a lot of anticipation from the company and from casino enthusiasts in India.
What further action can Delta Corp Ltd take?
Aside from providing clarity about the Daman situation, there are other possible actions that Delta Corp Ltd could take. This includes concentrating on its subsidiary Deltatech Gaming Limited (formerly known as Gaussian Networks) which has been at the center of the online gaming industry in India since 2011. There is still room for growth in this area as the demand for online casinos available in India increases, something that is shared by the author from that site. So, Delta Corp Ltd could look at the potential to acquire online licenses within India or as an offshore provider. There is also the potential to further develop the land based casino operations the company already owns.
Either of these options are valuable enterprises that could help stabilize the value of Delta Corp Ltd shares as the company waits for a final decision regarding its Daman casino license application.