I have been asking myself what was the hurry for Delta Corporation (online casino's) to launch a digital stablecoin in so many different currencies. So far they have only done a soft launch of the Digital Rupee, but the others are launching now. Where is the benefit besides the obvious as there has to be a major upside from this.
I find it funny how we learn as we go along when we are invested in our crypto bags and have to stay up to date. In December last year COTI launched a Private Payment Network for an online gaming company and even though they have not confirmed it was Delta it was rather obvious it was Delta.
Delta were desperate for their stablecoins to be launched of which there will be many Indian Rupee, Thai Baht, Japanese Yen, Chinese Yuan, Korean Kwon and the Euro and GBP. The main reason is they needed to change the trajectory of the company and move with the times staying ahead of their online competition.
Back in October of 2023 the Indian Government introduced a new online gaming and gambling tax of 28% and the impact was immediate. The 28th October was the deadline for companies to be compliant and the company's revenue was already down 59.4% for the 3rd quarter which is rather large.
Delta Corp knew they had to do something to turn the trend back as the customers were not happy having to pay so much to the tax man. They have started a new strategy which seems to have pulled back most of the clientele they lost prior to October 28th by offering promotional chips.
The chips are used to compensate for the losses the customer base is now paying in taxes and this has reduced the Delta Corp's profitability as these promotional chips even though they cannot be cashed out for face value they are helping with customers getting more value for less spend. This helps boost their gambling stake and thus their winnings. These promotional chips are costing Delta Corp roughly 7-8% in lost revenue. Within 3 months of going live with the newly introduced 28% tax Delta Corp is back on track again and expect to be back where they once were in Q3 2025. That is still 18 months away and highlights the impact this taxation has had with online gaming and gambling platforms.
I am still not smart enough to understand if there are any loop holes by using the crypto stablecoins, but do understand that the company not dealing in FIAT saves on FOREX fees when servicing the buying in phase as well as the cash out phase. This would add up to a considerable percentage when a company is looking to claw back lost revenue. By writing this post I am hoping to stumble upon the reason and do believe I found it after all so read on.
If the other countries don't impose high taxation Delta Corp can save a few percent on FOREX fees and slowly make back a percentage or two which adds up to a considerable sum considering they are dealing in billions of dollars. They have a vast umbrella of various casinos across Asia, America and Europe and no doubt the revenue they are talking about is only Indian related. The 4th quarter last year saw the company post a $4.6 million profit compared to $11.2 million the year before and why I suggest this is only the Indian subsidiary as these numbers are way too small and there is another holding company within the umbrella being used in another jurisdiction for larger revenue where less taxation is paid.
The loophole is the use of Tron as a router for the stablecoins which Delta Corp Mint on their customers behalf using the COTI Private Payment Network. It just seemed to complicated at first, but can understand now why they do this as those using the digital stablecoins can bypass the 28% tax if they gamble away from home on Delta's international sites.
I think the last sentence solved part of the mystery as the clientele use Tron as a medium for crypto conversions to stabelcoins to pay in their funds in order to get the stablecoins which they then use to gamble. Having so many stablecoins on offer means they can use any casino and not necessarily using the Digital Indian Rupee on an Indian registered casino and can gamble internationally and cash out back via the Tron conversion payment gateway when they have completed their gambling sessions.
