Hong Kong-listed casino operator Summit Ascent is bracing itself for the Russian Duma’s plans to hike gaming taxes throughout the Russian Federation by next year.

International brokerage Union Gaming Securities Asia Ltd. warned on Wednesday that Summit Ascent’s earnings before interest, taxation, depreciation and amortization (EBITDA) for 2018 may take a hit by as much as 6 percent should Russia gives the greenlight to tax gaming devices.

“Primorsky (Vladivostok) already set taxes at the high-end of the federal range, and should the bill be passed and Primorsky choose to remain at the high-end, this would have an ~HK$11 million impact on our 2018 EBITDA estimate (6% below our current forecast). There is further speculation that tax rates could be adjusted higher still post-2018,” Union Gaming analyst Grant Govertsen said in a note.

Russia doesn’t impose taxes on gross gaming revenues but the government earns from the imposition of taxes on gaming devices.