Shares of casino operator Delta Corp Ltd. ended with losses of 23 percent after the GST council on Tuesday, revised the GST rates on casinos higher from 18 percent to 28 percent.

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The stock ended at Rs 190, which is the lowest level in three months. This is also the biggest single-day drop for the stock on record. The stock has lost Rs 1,500 crore in market capitalisation. The decline in market cap is greater than its entire financial year 2023 revenue of Rs 1,021 crore.

On Tuesday, the GST council taxes casinos, race courses and online gaming at 28 percent GST on full face value. The purchase value used in casinos will carry GST.

Delta Corp is also in the F&O ban, which means traders cannot create any new positions in the stock. What is currently taking place is selling in the cash market and unwinding of existing positions.

The stock has declined in three out of the last four trading sessions. It is now trading at the lowest level in two months.

"I think it is possible that this is going to be a situation going forward. Maybe people will choose other destinations outside the country to play. Those who want to play, they will definitely fly out and they will play in the nearby destinations. That is what my guess would be," Deven Choksey of KRChoksey said.

Back in 2019, the DG GST Intelligence had booked two companies in Goa, including Delta Corp, for alleged GST evasion of Rs 6,189 crore. Speaking to CNBC-TV18 back then, the company's CFO had mentioned that they are in compliance with GST laws and have not evaded any tax.

First Published:Jul 12, 2023 9:44 AM IST