Gaming Stocks Surge as Cabinet Approves Online Gaming Bill
Gaming stocks in India saw significant gains, with Delta Corp leading at 8% increase, following the Union Cabinet's approval of the Online Gaming Bill. The bill aims to formalize the gaming sector and combat fraud by making online betting punishable. OnMobile Global and Nazara Technologies also experienced positive movement. Despite recent gains, gaming stocks have faced challenges over the past year, with Delta Corp and OnMobile seeing declines. The industry anticipates potential GST reforms that may introduce a 'sin tax' on gaming activities.
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In a significant development for the Indian gaming industry, gaming stocks witnessed a notable rally, with gains of up to 8% following the Union Cabinet's approval of the Online Gaming Bill. The move aims to formalize the gaming sector and address rising fraud cases by making online betting a punishable offense.
Market Performance
Delta Corp, India's only listed casino gaming company, led the surge with an impressive 8% increase, closing at ₹89.99. The company, which operates over 2,000 live gaming positions across Goa and Sikkim, has been at the forefront of the Indian gaming industry.
Other gaming-related stocks also saw positive movement:
| Company | Price Change | Closing Price |
|---|---|---|
| Delta Corp | +8.00% | ₹89.99 |
| OnMobile Global | +3.70% | ₹55.40 |
| Nazara Technologies | +0.53% | ₹1,396.50 |
Industry Impact
The approval of the Online Gaming Bill by the Union Cabinet marks a crucial step towards regulating the rapidly growing online gaming sector in India. The bill's primary objectives include:
- Formalizing the gaming industry
- Making online betting a punishable offense
- Addressing the increasing number of fraud cases in the sector
Long-term Performance
Despite the recent gains, it's worth noting that gaming stocks have faced challenges over the past year:
- Delta Corp shares have declined by 27% over the last 12 months
- OnMobile has experienced a 29% drop during the same period
However, OnMobile has shown resilience in recent months, outperforming the Nifty index with an 11% return over the past six months.
Future Considerations
As the gaming industry awaits the implementation of the Online Gaming Bill, another significant development looms on the horizon. Reports suggest that the upcoming GST reform may introduce a "sin tax" on gaming activities. This potential tax could have far-reaching implications for the industry's financial landscape and operational dynamics.
The combination of regulatory changes and potential tax reforms underscores the evolving nature of India's gaming sector. As the industry adapts to these new realities, investors and gaming companies alike will be closely monitoring the impact on market performance and long-term growth prospects.
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