From Buyer to Seller: Delta Corp’s role reversal in Online Gaming Fortunes

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Delta Corp, earlier this week announced the strategic sale of its online money gaming unit Deltatech Gaming, operating under the brand Adda52 to Head Digital Works, which operates online rummy and poker platforms under the A23 brand, for a total consideration of around Rs 491 crore in a cash-and-stock deal including Delta becoming the shareholder in Head Digital Works. Head Digital is majority-owned by Canadian private equity firm Clairvest Group.

This deal highlights the reversal of roles for India’s only listed casino operator. Around the same time, it acquired Adda52’s parent company, Gauss Networks, in 2016 for approximately ₹150 crore, Delta Corp also pursued an acquisition of Head Digital for around $100 million, which did not materialise. Delta Corp earlier sold its Nepal business to Ability Games in February 2024.

Delta Corp’s market cap has been on a falling streak in the last couple of years owing to government tax demands and the ongoing correction in the stock markets. The market cap is currently below Rs. 3000 crore down from around Rs.9000 crores in 2022. Meanwhile, A23’s net revenue was reported as Rs 841 crore in FY24 from Rs 839 crore in FY23, with a profit margin of 24%.

The current transaction by Head Digital also signifies a strategic consolidation in a sector battling government tax demands before the Supreme Court. The batch of petitions challenging over Rs. 1,00,000 crore tax demand will tentatively be heard in May 2025. In September 2024, Nazara Technologies acquired a 47.7% stake in Moonshine Technology Pvt Ltd, the parent company of PokerBaazi, for Rs 982 crore.

Earlier in December 2024, Delta Corp Limited announced the demerger of its hospitality and real estate business into Deltin Hotel & Resorts Private Limited and Delta Penland Private Limited.

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