Macau casino operator Galaxy Entertainment Group (GEG) reported revenue and profit declines in Q1 as new smoking restrictions helped butt out VIP play.

Figures released Thursday show the Hong Kong-listed GEG’s group revenue falling 8% (both year-on-year and sequentially) to HK$13b (US$1.65b) in the three months ending March 31. Adjusted earnings were also down 8% to HK$4b.

GEG viewed its results as “solid” given Macau’s recent imposition of its full smoking ban as well as increased competition from local and regional casinos “that have a significant economic advantage compared to Macau,” particularly in the size of the tax rates.

The Q1 declines would have been worse had GEG’s gaming operations not “played lucky” across all its gaming verticals. GEG estimates that this streak of good luck added HK$111m to the company’s adjusted earnings during the quarter.