Delta Corp has made another strategic investment with the acquisition of 15.52% stake in Halaplay (a fantasy sports platform) for Rs 155m
Delta Corp’s subsidiary — Gaussain Software — has acquired 25% stake in Jalesh Cruises for $10m. Gaussain Software will be the preferred partner to manage and operate the casinos/gaming centers on the cruises. Delta will manage the casino operations for a fixed payment to Jalesh Cruises.
Delta Corp has made another strategic investment with the acquisition of 15.52% stake in Halaplay (a fantasy sports platform) for Rs 155m; it also transferred its homegrown fantasy sports platform Leagueadda.com to Halaplay for a 4.03% stake. Following this, Delta Corp’s effective holding in Halaplay will stand at 19.55%. We believe that both the investments are strategic and will accrue benefits only in the long term, while upholding Delta Corp’s dominant position as a frontrunner in casino operations in the country and a leading player in the online gaming space.
Gaussain Software, has acquired 25% stake in Jalesh Cruises promoted by Amit Goenka (son of Zee Group’s founder Subhash Chandra) and the right to be the preferred partner to manage and operate the casinos/ gaming centers for $10m. The first vessel, with a capacity of 1,600-1800 passengers will have 15-20 tables. The cruise will operate for eight months in India and four months in the UAE. The benefits will accrue in the long term as Jalesh scales up the business from one cruise to 2-3 cruises. However, Delta’s investment is capped at $10m.
We believe the acquisition of 15.52% stake in Halaplay is a positive move as Halaplay is a fantasy sports company with a relatively higher viewership, which will enable faster scaling up of Leagueadda.com. However, it’s also important to note that online gaming is a fast growing and an unexplored market, where Halaplay has achieved sales of `30m in FY18.