Delta to sell stake to overseas players, Daman to get its first casino by 2013

Delta Corp, which owns offshore casinos in Goa, is in talks with the largest hotel and casino operators in the world, including the Las Vegas-based MGM Resorts International and Caesars Entertainment, to sell stake. Caesars and MGM are among the few international casino owners that have evinced interest in tying up with Delta. They are currently studying foreign investment, technical collaboration and licensing norms. Delta Corp, promoted by builder Jaydev Mody, has mandated Citibank and UBS to get a strategic investor on board.

Casinos and gambling are prohibited in most parts of India. However, in Goa and Daman, the business currently operates on licenses issued under the Goa, Daman and Diu Public Gambling Act. Sikkim is the only other state that allows the setting up of casinos subject to the issue of licenses. But the central government does not permit FDI in gaming and gambling. Delta’s official website, however, says that it is the only gaming company in India to have foreign investment promotion board (FIPB) approval to induct foreign investment. Delta had got FIPB approval for FDI in 2000, before the negative list was prepared in 2002. Advani Pleasure Cruises, in which it acquired 51% stake recently, also has a 49% FDI component, which can be acquired by another foreign investor. The company has also attracted a set of high networth individuals who together invested Rs 280 crore in it last year. Among them is investor Rakesh Jhunjhunwala, who put in Rs 80 crore.

To tap the markets in southern India and South East Asia and to compete with casino destinations such as Macau and Singapore, Delta will invest $200 million to set up a 500-room hotel and a 150,000 sq ft casino in the Sri Lankan capital of Colombo.Delta has bought around four acres of land in the city from the Lankan government for $50 million. The company can build around 2.5 million sq ft of space that will house the casino and hotel. The company is also building a 300-room hotel in Panjim in Goa for Rs 200 crore. This property will also have a land-based casino operation. Delta had bought the land in Panjim for Rs 70 crore earlier this year. In May this year, Delta had bought a 51% stake in the Daman Hospitality Private limited (DHPL) that owns the resort property at Daman which is managed by Thunderbird Resorts under a management contract for Rs 50 crore. Once implemented, the deal which was signed this year will now see one of the largest hotels-cum casino properties coming up at the Daman property. 'Thunderbird Resorts', the resort property situated in Daman, comprises of 176 rooms, having 29,000 sq ft area for indoor events and meeting area as well as 70,000 sq ft of leisure area including outdoor pools and other entertainment areas. Currently under construction the casino would be functional by 2013 and once operational, it would be equipped to offer 1000 gaming positions including 100 gaming and 300 slot machines for gaming enthusiasts. While the group is awaiting a license required for operating a five star property, they have already acquired an 'in principle' license to set up a casino in Daman. The company currently owns one of India's largest offshore gaming casino vessel in Goa called Casino Royale since 2008. Delta Corp Limited is one of the prominent players within the Indian gaming and entertainment industry that looks to consolidate its position by adding to its existing portfolio with the 5 star hotel cum casino offering at Daman.

It is also in the process of refurbishing MV Horseshoe, the ship it recently bought from Caesars Palace Entertainment, for $3 million. This ship, to be named Kings Casino, will be Delta’s third off-shore casino in Goa.