Earnings before interest, tax, depreciation, and amortization (EBITDA) of Macau casinos for the second quarter of 2018 may not be as rosy as the previous quarter, according to international brokerage Morgan Stanley.

Morgan Stanley analysts forecast Macau casino property EBITDA to fall by as much 6 percent during April to June 2018 period as reflected by the declines in both VIP and mass market segments. The brokerage firm is also expecting Macau casinos’ gross gaming revenue (GGR) to slow down to US$9.2 billion in the second quarter, 4 percent lower than the recorded US$9.46billion casino GGR in the three months ending March 31, 2018.

On the flip side, Morgan Stanley analysts noted that Macau casino GGR in the second quarter of 2018 will still be 17 percent higher compared to the same period last year.

Morgan Stanley explained that rising labor costs, lower win rates, and softer gross gaming revenue in the last two months of second quarter will drag Macau’s EBITDA lower. It also didn’t help that there’s a significant drop in VIP players, according to the gaming analysts.