The government of Macau is finally admitting that the city-state’s economy will take a huge hit when the casino smoking ban takes effect.

Public broadcaster Radio Macau reported on Thursday that the health department wrote a letter to a legislator, saying it is expecting a 2.7 percent to a 4.6 percent decline in Macau’s gross gaming revenue in the event of a total smoking ban.

The legislator was reportedly asking for the health bureau’s assessment of a smoking ban in the city state. According to the health department, the assessment was made in conjunction with gaming regulator Gaming Inspection and Coordination Bureau.

But Union Gaming Securities Asia Limited believes that the decline will breach the 5-percent mark should the government decides on a full smoking ban.