Delta Corp and Nazara Shares: How the 28% GST Changes the Future for Gaming Stocks

Synopsis: The Supreme Court’s GST verdict has put India’s gaming sector under the spotlight. Here’s a look at what it could mean for Delta Corp, Nazara Technologies, and the industry.

The Supreme Court’s decision to uphold the 28% GST levy on online gaming has added a new layer of uncertainty for India’s gaming industry. The ruling not only validates the government’s tax framework but also strengthens retrospective GST claims against several gaming and casino operators.

Against this backdrop, investors are closely assessing the potential impact on listed gaming companies. Here’s a look at what the verdict means for the sector and how companies such as Delta Corp and Nazara Technologies could be affected going forward.

What happened

The Supreme Court has upheld the levy of 28% GST on the full face value of bets placed on online gaming platforms, providing a major boost to the government’s position in one of the industry’s biggest tax disputes. The ruling also validates the retrospective application of GST demands issued to gaming companies over previous years.

The Court rejected the argument that GST should be charged only on platform fees or gross gaming revenue. Instead, it agreed with tax authorities that the entire value of bets or contest entry amounts constitutes the taxable value. The judgment further stated that online games involving monetary stakes on uncertain outcomes qualify as betting and gambling under the GST framework.

The verdict restores major tax notices issued to gaming operators, including a nearly Rs 21,000 crore notice served on Gameskraft Technologies. With the Supreme Court backing the government’s interpretation, pending GST disputes involving online gaming, fantasy sports, casinos, and horse racing operators are expected to be resolved in line with the ruling, potentially exposing the sector to tax demands exceeding Rs 1 lakh crore.

Brokerage View on Sector

The Supreme Court’s ruling adds another challenge for an industry that has already undergone significant disruption. According to ICICI Securities, India’s gaming market has contracted by nearly 80% since the August 2025 ban on real-money gaming, with the industry’s size falling from around $6 billion to approximately $1 billion. Before the ban, real-money gaming accounted for nearly 88-90% of the sector’s total revenue.

The latest GST verdict could further increase regulatory uncertainty for gaming companies, particularly those with exposure to real-money gaming and casino operations. 

Following the ban, the industry has become smaller and more concentrated, with 70-80% of the current Rs 10,000 crore market controlled by a handful of large players such as Krafton’s BGMI and Garena’s Free Fire, highlighting the structural shift underway in the sector.

Stocks that might be under focus after the SC ruling

Delta Corp Ltd

Delta Corp Limited is India’s only publicly listed gaming and hospitality company. Headquartered in Mumbai with primary operations in Goa and Daman, its core business portfolio encompasses regulated live and electronic casino gaming, luxury resort accommodations, and corporate real estate.

Impact: Following the Supreme Court’s ruling upholding the 28 percent GST levy on online gaming and related activities, shares of Delta Corp came under sharp selling pressure as investors reacted to concerns over potential tax liabilities and increased regulatory uncertainty. 

Given the company’s significant exposure to the online gaming segment, the verdict has intensified market focus on its future financial and legal position, leading to a negative near-term sentiment around the stock.

Nazara Technologies Ltd

Nazara Technologies is the leading India-based diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America, and offerings across the interactive gaming, eSports, and gamified early learning ecosystems.

Impact: Nazara Technologies operates across gaming, esports, and digital sports media, with a diversified business model that reduces its dependence on real-money gaming. While the company has not disclosed any significant GST liability linked to the ruling, the verdict negatively impacted investor sentiment, resulting in a sharp decline in its share price. 

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