AZB & Partners was legal counsel to Delta Corp, the only listed company in India’s casino gaming industry, in its recent US$85.2 million qualified institutional placement of approximately 35 million equity shares.
AZB’s team drafted the offer document and transaction agreements. The team comprised partners Varoon Chandra and Lionel D’Almeida and senior associate Richa Choudhary.
Chandra told India Business Law Journal that the “transaction was executed in an extremely smooth manner, within a highly compressed timeline of just over a month between kick-off and launch” and that it “saw very healthy subscription levels, despite having been marketed only to Indian residents”. Zia Mody, the managing partner of AZB, is married to Jaydev Mody, a promoter and non-executive chairman of Delta Corp.
Delta Corp currently holds three of the six offshore gaming licences issued in Goa. It also operates one land-based casino in Goa and one in Sikkim. The company is entering the online gaming business in India by acquiring Gauss Networks through an August 2016 share purchase agreement and a subsequent scheme of arrangement filed in March with the National Company Law Tribunal, which is yet to provide its order. Gauss Networks owns and operates online gaming portal Adda52.com through a wholly owned subsidiary.
India’s gaming industry is worth an estimated US$60 billion per year, according to KPMG. Restrictive laws have curbed the industry’s growth. Only Goa, Sikkim and the union territory of Daman allow casino-based gaming, while 12 states offer a lottery and six states allow horse racing.