Delta extends its footprint in the lucrative fantasy sports field with the purchase of a minority stake in India’s second largest DFS business
Indian gaming and hospitality giant Delta Corporation has recently announced plans to venture further into the fantasy sports field.
Delta will pay Rs. 15.50 crores in cash for its interest in the fantasy sports operator in two tranches. The hotel and casino company also pointed out that it intends to finalize the transaction before May 1, 2019, subject to conditions precedent by HalaPlay.
Founded in 1985, Delta has grown into India’s largest and the sole listed casino and hospitality company. It operates casinos in three Indian states, with those being Goa and Sikkim as well as in the Daman District. Aside from its physical gambling properties, it also runs the Adda52 online gaming operation which features online poker and online games of rummy.
First Foray into Fantasy Sports
Delta’s recently announced involvement with HalaPlay does not represent its first foray into the world of fantasy sports. The gaming and hospitality giant launched last February its LeagueAdda operation, which offers cricket, football, and kabbadi fantasy sports contests.
Under the terms of its deal to acquire a minority stake in HalaPlay, Delta said that its wholly owned subsidiary Gaussian Networks Private Limited has entered into an agreement to transfer its fantasy sports business as a going concern to HalaPlay. Gaussian will be allotted 10,320 shares in HalaPlay as a result from the transfer. It will thus acquire a 4.03% stake in the fantasy sports operator.
HalaPlay was established in August 2016. The operation claims to be India’s second largest cash-based daily fantasy sports operator. It recorded turnover of Rs.
298.13 lakhs for the 2017-18 financial year. Early-stage investment fund Kae Capital and social gaming company Nazara Technologies Limited were among the early financial backers of HalaPlay, investing an undisclosed amount in the fantasy sports operator and helping it gain foothold in the lucrative space.
As mentioned above, Delta expects to complete all related transactions by May 1, 2019. The deal does not require regulatory approval to be finalized. After the purchase of the 15.52% stake in HalaPlay and the allocation of a 4.03% stake in the fantasy sports operation is complete, Delta will practically own a 19.55% stake in HalaPlay.
The casino and hospitality operators that the deal will bring further value and will strengthen its position in the competitive online gaming space.
Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories.