Wynn Macau Ltd IP payments to parent capped at US$75mln

Jan 03, 2023 Newsdesk Latest News, Macau, Top of the deck  

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Macau casino operator Wynn Macau Ltd and its gaming licence-holding entity Wynn Resorts (Macau) SA will pay at most US$75.2 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 2023 was mentioned in a recent filing to the Hong Kong Stock Exchange.

For 2019, 2020, and 2021, the actual amounts paid by Wynn Macau Ltd and its units under the intellectual property arrangements amounted respectively to US$168.2 million, US$39.9 million, and US$49.6 million.

Wynn Macau Ltd runs the Wynn Macau casino resort on the city’s peninsula and Wynn Palace (pictured) on Cotai.

Wynn Macau Ltd has been awarded a new, 10-year casino concession in Macau, starting from January 1 this year. The group is set to spend MOP17.7 billion (US$2.21 billion) over the course of the decade-long concession, with MOP16.5 billion of that – or about 93.2 percent – set for expanding international markets and non-gaming investments.

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