Online gambling technology providers NetEnt are the latest to report declines in revenue and profit due to challenges in adjusting to Sweden’s new regulated market.

On Thursday, the Stockholm-based NetEnt reported revenue of SEK418m (US$43.8m) in the three months ending March 31, a modest 2.8% decline from the same period last year. Earnings improved 7.7% to SEK196m as margins gained nearly five points to 47%, but operating profit dipped 6% to SEK126m and net profit was down 10.5% to SEK120m.

In mid-February, NetEnt reported that its game win was off 5% since the January 1 launch of Sweden’s new regulated online gambling market, and the company said Thursday that its Nordic markets “accounted for almost the entire slowdown [in Q1], mainly due to lower volumes in Sweden.”

NetEnt said the gambling taxes paid under Sweden’s new regulatory scheme lowered its overall revenue by 2% in Q1, but the changes also “impacted our customers and players to an extent that we had not foreseen.” (NetEnt isn’t alone in having difficulties adjusting to the new Swedish reality.)