One of many floating casinos under the Delta Corp umbrella. This vessel has India's largest dedicate poker room.
Those of you that have been following my articles will know COTI is currently busy with a "soft" launch with their first Private Payment Network (PPN). The client is a gaming/gambling online business who we presume is Delta Corp due to the name of the digital token. No official announcement as yet and why we use the "presume" when we do already know.
The need for Delta Corp to have their own stable dollar currency that they control and mint when required is rather obvious when you dig a little deeper. Back in October last year the Indian Government introduced a new 28% online and gaming tax which saw Delta Corporation's revenue drop by 59.4% in the third quarter of 2023. Tax authorities having no clue or understanding instead of stipulating a much smaller tax will now end up with peanuts.
As you can see from the above transfers there has been 19 until now and still small numbers telling us they are still in the test phase or soft launch before the full run out happens.
I have mentioned this before the smart part of this entire set up is how they are using the Tron blockchain like a central conduit hub where the transactions take place. Someone from India who has to pay a 28% tax fee can now bypass the system entirely and use the Delta Corp gaming/gambling online casinos by moving in and out of the Tron token.
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Lets say you have $1000 you would like to gamble with you would then move that into your Tron wallet via an exchange and purchase the Tron based stablecoins which is created by COTI via a router before entering the Delta Corp online gaming platforms. This would then be done in reverse order when cashing out.
I am presuming the Indian registered casinos owned by Delta Corp are being avoided and the other casinos under their umbrella and there are many in other jurisdictions are being used like Thailand, South Korea etc.
What is interesting to note is how Delta Corp started off back in 2008 by offering floating casinos /cruise ships that left Indian waters and allowed the casinos to operate legally in international waters in full view of the Indian coast. We had similar floating casinos back in the day in South Africa so I know only too well how this operates. This is all legal and above board and I see Delta Corp now using crypto allowing their investors to stay at home yet gamble offshore. Delta Corp does also have land based casinos, but the online is where the huge taxation is happening.
The client already having the gaming chips or stablecoin before entering the site means they have already converted and bought their gambling stake and no conversions are now required. Does this bypass the 28% buy in I am not 100% sure on Indian registered casino platforms but it does allow gambling to happen on other Delta Corp platforms registered elsewhere bypassing the high Indian taxes. This may even allow the gamblers to gamble on those floating casinos once they are on international waters being the same as if they were actually on the vessel.
One can understand the soft launch approach being taken here because once they get this right there is very little the tax authorities can do to prevent this and the 28% taxation threat has disappeared. They will obviously register smaller amounts for taxation purposes, but the bulk will be tax free. This is a very clever work around where the use of crypto shows how disruptive it can be and there is very little Governments can do to prevent this.
All of these tokens being minted and burned have small fees attached which feed back to the COTI treasury in the form of an APR. I do expect the numbers will rise creating a decent APR knowing how much volumes flow through casinos. There must be other online casinos paying hefty taxes who are paying careful attention to seeing this unfold.