Stocks

Delta Corp sinks after losing casino permits

Prakash Kamat Panaji | Updated on November 17, 2017 Published on February 01, 2011

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The stock of Delta Corporation witnessed a steep slide after the Government on Monday cancelled casino licences of two offshore casino vessels — Casino Royale and Arabian Sea King — operating in the waters of River Mandovi.

The company owns and operates three offshore live gaming casinos in Goa on the Mandovi – Casino Royale, Caravela and King's Casino. Delta Corp owns three out of the six offshore live gaming casino licences issued by the Government of Goa.

The stock price tumbled 8.5 per cent to close at Rs 69.60 against the previous close of Rs 76.05. Trading volumes on the BSE jumped to 99.17 lakh shares against the two-week average of 26.42 lakh shares

The termination letter, signed by Under Secretary (Home), Mr V. P. Dangui, on Monday, stated that the vessels do not have the Director General of Shipping's trading licence, which is mandatory under the Goa Gambling (Prevention & Regulation) Amendment Act. The order stated that the reply to the show-cause notices issued by the Department to the operators was unsatisfactory.

Sources in the Captain of Ports Department, however, confirmed that they had given an extension of one month to the operators of these casinos to produce the documents pertaining to the vessels.

The Home Ministry sources pointed out that their NoCs had expired almost a year back.

The DG Shipping had asked the Goa Government to act against the vessels in mid-2010, but the Government was dragging its feet on the issue. Six offshore casinos were given licences under the anti-gambling legislation of which one had already lost the licence following action by the State Home Ministry for alleged violations.

Published on February 01, 2011
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