Shares of Delta Corp surged 11.49% to ₹82.69 in early trade on May 27, emerging as a top gainer on the NSE, as the Supreme Court is scheduled to pronounce its much-awaited judgment today on the constitutional validity of Tamil Nadu and Karnataka legislations banning online games played for stakes, including skill-based games such as rummy and poker.
A bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan has listed the matter for judgment on May 27. The case, titled State of Tamil Nadu and Others vs Junglee Games India Private Limited and Another, is one of the most consequential legal proceedings for India’s real-money gaming industry in recent years.
The central constitutional question before the court is whether state governments can impose blanket prohibitions on online games played for stakes, even when such games have been judicially recognised as games of skill. Tamil Nadu and Karnataka enacted their respective legislations citing concerns around addiction, financial distress, and alleged suicides linked to online gaming. Gaming companies challenged the laws on grounds of violation of the fundamental right to trade and business under Article 19(1)(g) of the Constitution, arguing the restrictions were arbitrary and disproportionate.
The industry has consistently maintained that games such as rummy, fantasy sports, and poker involve substantial skill and have been repeatedly recognised by courts as distinct from gambling activities based purely on chance.
A ruling in favour of the gaming companies would provide significant regulatory breathing room for listed players including Delta Corp, which operates online rummy and poker platforms, and Nazara Technologies, which has exposure to skill-gaming formats. A verdict upholding the state bans would create renewed headwinds for the sector.
Separately, the Supreme Court is also expected to take up the matter of the government’s decision to retrospectively impose 28% GST on the full face value of bets placed on all gaming platforms, a demand that runs into tens of thousands of crores across the industry and remains stayed pending judicial review.
Delta Corp trades at a P/E of 26.05 with a market capitalisation of approximately ₹2,227 crore. The stock’s 52-week range stands at ₹48.30 to ₹98.80.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.