TEAM:

MAYUR PATIL

SHARAN SHETTY

NISHITA KHANDELWAL

VANSHITA DUBEY

TARUNI PEDAMALLI

PRIYANKA SRIVASTAVA

DELTA CORP: CASINO

It is a diversified Indian company with its core business in casino (live, electronic and online)gaming
industry. In fact it’s the only listed company engaged in this sector. They have been around since 1990
and have grown into a major player in the Indian gaming market They have recently been in news
regarding their notice of GST of 11,140 crore and another of 5,682 crore against their 3 subsidiaries.

PESTEL Analysis for Delta Corp

Political:

• Uncertain regulatory landscape:

o Only 4 states (Goa, Sikkim, Daman, and Diu) have legalized casinos.
o Goa generated INR 15.6 billion in casino revenue in 2021-22, demonstrating the potential
market.
o The Law Commission of India recommended online gambling legalization in 2018, but no
action has been taken.
• Potential for nationwide regulation:
o The online gambling market in India is estimated to reach $1.2 billion by 2024.
o A national framework could bring in INR 200 billion in annual revenue according to industry
estimates.
• Government policies:
o India’s tourism industry generated INR 16.91 lakh crore in 2022, benefiting casino tourism.
However, restrictions on advertising and marketing gambling limit promotional activities.
Economic:

• Growing middle class:

o India’s middle class is expected to reach 547 million by 2025, with a disposable income of
INR 32.5 lakh per year.
o Consumer spending on entertainment and leisure activities is expected to grow at a CAGR of
11% until 2025.
• Economic fluctuations:
o India’s GDP growth is projected to be 6.8% in 2023-24 but could be impacted by global
economic factors.
o Economic downturns can lead to a decline in consumer spending and casino revenue.
• Competition from online gambling:
o The online gambling market in India is growing at a CAGR of 25%, driven by increased
internet penetration and mobile phone usage.
o The online gambling market is expected to reach INR 390 billion by 2025.

Social:

• Changing demographics:
o India’s median age is 29 years, and the population is projected to reach 1.4 billion by 2025.
o The young demographic is more open to trying new experiences and exploring gambling.
• Social stigma towards gambling:
o A 2022 survey by the National Council of Applied Economic Research found that 56% of
Indians have a negative perception of gambling.
o Delta Corp needs to address this stigma through responsible marketing and community
engagement.
• Shifting consumer preferences:
o A 2023 study by Deloitte found that 72% of Indian consumers are willing to pay more for
personalized experiences.
o Delta Corp needs to invest in technology to create personalized and immersive gaming
experiences.

Technological Factors:

• Online Gaming: Technological advancements impact the gaming industry. The shift towards
online gaming and mobile platforms may affect Delta Corp’s business strategies.
• Data Security: With increasing digitization, ensuring data security and privacy of users is critical.
o Positive: Growth of online gaming platforms creating new revenue streams for Delta Corp.
Development of new technologies such as virtual reality and augmented reality could
enhance the gaming experience.
o Negative: Increasing cyber security threats could require significant investments in security
measures. Potential for technological disruptions from new entrants in the online gaming
market.
Environmental Factors:

• Sustainability and Social Responsibility: Corporate social responsibility initiatives and

environmentally friendly practices can influence public perception and regulatory compliance.

Positive: Growing awareness of sustainability issues could lead to increased demand for eco-friendly
casinos and hotels. Potential for Delta Corp to implement sustainable practices to reduce its
environmental impact.

Negative: Increasing regulations on environmental sustainability could lead to additional costs. Climate
change could impact tourism patterns and consumer spending.

Legal Factors:

• Regulatory Compliance: Adhering to local and national gambling laws, licensing requirements,
and ensuring responsible gaming practices.
• Legal Challenges: Any ongoing or potential legal issues, litigations, or disputes that might impact
operations.
o Positive: Potential for legalization of online gaming in more Indian states, expanding Delta
Corp’s market reach. Ongoing legal challenges to existing gambling regulations could create
opportunities for market expansion.
o Negative: Potential for stricter regulations on gambling advertising and marketing. Legal
uncertainties surrounding online gaming could deter investors and partners.

ENVIRONMENTAL SCANNING THROUGH SWOT ANALYSIS

Strengths:

• Strong brand recognition and market leadership: Delta Corp is a well-known and respected
brand in the Indian gaming industry, with a strong market share across various segments.
• Diversified portfolio of gaming offerings: The company operates casinos, online gaming
platforms, and hotels, offering a diverse range of options to attract a wider customer base.
• Experienced management team: Delta Corp has a team of experienced and successful
professionals with a deep understanding of the gaming industry.
• Strong financial performance: The company has a consistent track record of profitability and
financial growth, providing a solid foundation for future expansion.
• Favourable regulatory environment: The Indian government has adopted a relatively liberal
stance towards gaming, creating opportunities for growth in the industry.
Weaknesses:

• High dependence on the Indian market: Delta Corp’s operations are primarily focused on India,
which exposes the company to economic and political risks in the country.
• Limited online gaming presence: While Delta Corp has entered the online gaming market, it still
faces stiff competition from established players.
• Susceptibility to economic downturns: The gaming industry is sensitive to economic fluctuations,
making Delta Corp vulnerable to potential recessions.
• Negative social perception: Gambling can be associated with negative social perceptions, which
may deter some potential customers.
• High reliance on foreign tourism: Delta Corp’s casinos rely heavily on foreign tourists, making the
company vulnerable to fluctuations in tourism trends.

Opportunities:

• Growing online gaming market: The online gaming market in India is experiencing rapid growth,
offering significant potential for Delta Corp to expand its reach and customer base.
• Increasing disposable income: Rising disposable income in India is creating a larger market for
leisure activities, including gambling.
• Expansion into new markets: Delta Corp can explore opportunities to expand its operations into
other countries or regions.
• Development of new gaming technologies: New technologies like virtual reality and augmented
reality could enhance the gaming experience and attract new customers.
• Increasing legalization of online gaming: Continued legalization of online gaming in more Indian
states could open new markets for Delta Corp.

Threats:

• Increased competition: The gaming industry is becoming increasingly competitive, with both
established and new players vying for market share.
• Changes in regulatory environment: Changes in government regulations could negatively impact
Delta Corp’s operations, such as increased taxes or stricter licensing requirements.
• Economic slowdown: A global economic slowdown could lead to reduced consumer spending
and decreased demand for gaming services.
• Technological disruptions: New technologies could disrupt the gaming industry, making Delta
Corp’s existing business model obsolete.
• Negative social media sentiment: Negative publicity or social media campaigns could damage
Delta Corp’s reputation and deter customers.

By analysing its strengths, weaknesses, opportunities, and threats, Delta Corp can develop strategic plans
to capitalize on its advantages, address its weaknesses, exploit emerging opportunities, and mitigate
potential threats. This will help the company maintain its competitive edge and achieve sustainable
growth in the long run.