Wynn Macau set to pay $140 million in 2024 for IP license agreements

It is anticipated that Wynn Macau Ltd and its gaming license-holding subsidiary, Wynn Resorts (Macau) SA, will pay a little over HKD 1.09 billion (US$140.0 million) in 2024 for the use of “Wynn”-related trademarks, copyrights, and service marks held by Wynn Resorts Ltd, a US-based company.

The sum owing by the Macau business under the 2009 intellectual property (IP) license agreements must equal US$1.5 million per month or 3 percent of the gross monthly profits from intellectual property, whichever is larger.

The yearly maximum for these fees for the year 2024 was disclosed in a recent filing with the Hong Kong Stock Exchange. Wynn Macau Ltd. and its subsidiaries paid US$49.6 million and US$25.2 million in 2021 and 2022, respectively, in compliance with the IP agreements. The ceiling was established at US$115.1 million for 2023.

The firm that manages the Wynn Macau casino resort on the city’s peninsula and the Wynn Palace on Cotai is called Wynn Macau Ltd. Furthermore, Wynn Macau Ltd. and Wynn Resorts (Macau) have resolved to reimburse Wynn International Marketing Ltd. for marketing-related services up to US$14.9 million this year; the corresponding annual maximums for 2025 and 2026 are US$17.9 million and US$21.5 million, respectively.

Wynn Macau Ltd. and its subsidiary paid Wynn Design & Development LLC, a part of Wynn Resorts, US$10.9 million for design services, with maximums of US$12.3 million and US$13.6 million set for 2025 and 2026, respectively.

In addition, Wynn Macau Ltd. and Wynn Resorts (Macau) have a corporate allocation agreement with the parent company that allows the Macau companies to carry out their reporting, legality, taxes, accounting, and transparency responsibilities as Wynn Resorts subsidiaries. The parent company will receive US$35.7 million from the Macau divisions in 2024 and 2026, while the Wynn Macau group would receive US$2.4 million for services provided to Wynn Resorts on an annual basis.

Original story by: GGRAsia