Macau casino operator Wynn Macau Ltd and its gaming licence-holding entity Wynn Resorts (Macau) SA will pay just above HKD1.09 billion (US$140.0 million) this year for the right to use “Wynn”-related trademarks, copyrights and service marks controlled by a unit of the parent, U.S.-based Wynn Resorts Ltd.
Under intellectual property (IP) licence agreements initiated in 2009, the fee payable by the Macau operation to Wynn Resorts Holdings LLC must equal either 3 percent of the intellectual property gross monthly revenues of the Macau business or US$1.5 million per month, whichever sum is greater.
The annual cap on such fees for calendar year 2024 was mentioned in a recent filing to the Hong Kong Stock Exchange.
For 2021 and 2022, the actual amounts paid by Wynn Macau Ltd and its units under the intellectual property arrangements amounted respectively to US$49.6 million and US$25.2 million. The cap for 2023 was set at US$115.1 million.
Wynn Macau Ltd runs the Wynn Macau casino resort on the city’s peninsula and Wynn Palace (pictured) on Cotai.
Wynn Macau Ltd and Wynn Resorts (Macau) will also pay up to US$14.9 million this year to Wynn International Marketing Ltd, for marketing-related services. Wynn International Marketing is also a unit of Wynn Resorts.
The annual caps for marketing services in 2025 and 2026 have been set at US$17.9 million and US$21.5 million, respectively. These figures were deemed the necessary amount “to adequately compensate” Wynn International Marketing and foreign resident staff working for Wynn Macau Ltd, including salaries and benefits.
The group also set new caps for a design services agreement. Wynn Macau Ltd and its unit will pay US$10.9 million for design services to Wynn Design & Development LLC, a unit of Wynn Resorts. Such cap was set at US$12.3 million and US$13.6 million for 2025 and 2026, respectively.
Wynn Macau Ltd and Wynn Resorts (Macau) also entered into a corporate allocation agreement with the parent group, which allows the Macau units “to comply with certain reporting, legal, tax, accounting and disclosure requirements” as subsidiaries of Wynn Resorts.
The Macau units will pay US$35.7 million each year between 2024 and 2026 to the parent group, while the Wynn Macau group will receive US$2.4 million per year for services rendered to Wynn Resorts.
Feb 28, 2024Members of Macau’s Legislative Assembly approved on Wednesday the first reading of the draft “Law to Combat Gambling Crimes”, which has been presented by the city’s authorities as a...
Feb 28, 2024
Feb 28, 2024
”Our businesses delivered double-digit growth across the board throughout the year, enabled by strategic investments and strong execution”
President and chief executive of Light & Wonder