Greek betting operator OPAP started 2016 on the wrong note as its profit fell more than one-quarter due to increased taxation.

According to an interim management statement released Monday, OPAP’s gross gaming revenue fell 4.4% to €340.7m in the three months ending March 31. Net gaming revenue was down 2.5% to €153.8m, but applying the new 35% gaming tax retroactively to Jan. 1, net revenue was down 11.5% to €139.6m.

The retroactive tax took an even greater toll on quarterly profits, which would have fallen 9% to €52.8m but actually fell 26.3% to €42.8m. Profits would have been even lower had the company not kept a sharp lid on costs, including cutting CSR expenses in half, which led to a 24% reduction in total marketing spending.

The struggling Greek economy took a bite out of OPAP’s Stihima sports betting revenue, which fell 14.1% to €102.5m. The betting decline was partially offset by a 2.4% rise in lottery revenue to €201.1m, while the Instant & Passive division was down 8.7% to €37.1m.