28% GST rate on online gaming impact: Why Nazara Tech shares fall is limited while Delta Corp stock drop nearly 30%?

livemint.com:

₹680.50 apiece, down by ₹26 or 3.68% on NSE. In the early deals, Nazara's stock did tumble by at least ₹100.25 or 14.2% by hitting an intraday low of ₹606.25 apiece. That being said, Nazara's stock has recovered major losses that were recorded in the early trade of Wednesday.

But that was not the case with Delta Corp. The Mumbai-based company's stock traded erased the ₹200 mark and was trading at ₹191.40 apiece, slipping by ₹55.30 or 22.42%. Overall, in the day, the stock dipped by 28.80% with an intraday low of ₹175.65 apiece.

On Tuesday, in the 50th meeting, Finance Minister Nirmala Sitharaman-chaired GST council members decided to away with the distinction of game of skill and chance in the case of online gaming. Also, it levied a 28% GST rate on the full value of online gaming, casinos, and horse racing. Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing, and on the full value of the bets placed in case of the Online Gaming.

These changes will come into effect after an amendment in the GST law. The 28% tax rate is seen to hurt online gaming companies' earnings. But the reason why the decline in Nazara Tech shares is limited is because the company does not major impact on this GST tax rate, unlike Delta Corp whose business heavily surrounds gaming and casinos.