Wynn Macau agrees fee for trademark use in 2025
The casino operator pays for the right to use Wynn-related trademarks, copyrights, and service marks.
Macau.- Wynn Macau and its gaming licence entity, Wynn Resorts (Macau), are to pay US-based parent company Wynn Resorts HK$1.17bn (US$150m) for the use of Wynn trademarks, copyrights and service marks in 2025.
According to an agreement signed on September 19, 2009, Wynn Macau must pay either 3 per cent of the Macau business’s intellectual property gross monthly revenues or HK$11.7m (US$1.5m) per month, depending on which sum is greater.
The intellectual property licence agreements have a perpetual term but may be terminated if Wynn Resorts ceases to have the right to exercise more than 50 per cent of voting rights, if there is a material breach of terms, if there is a suspension or revocation of gaming licences, or if Wynn Resorts Holdings deems its subsidiary to jeopardise any gaming licences or gaming business.
Wynn Macau paid US$49.6m and US$25.2m in 2021 and 2022, respectively. The cap for 2023 was set at US$115.1m and for 2024 at US$140m.
Moody’s upgrades Wynn Macau outlook
Moody’s has announced that it has updated the outlook of Wynn Macau and its parent, Wynn Resorts Finance, from stable to positive. The agency also affirmed a B1 rating for senior unsecured notes.
The institution said the confirmation of the rating and the positive outlook indicates its expectation of enhanced leverage for Wynn Resorts Finance within the mid 5x debt/EBITDA range for 2024 bolstered by the recovery of Macau’s gaming market and strong performance at Las Vegas and Encore Boston Harbor in the United States, contributing to revenue and EBITDA growth.
The rating agency said the outlook reflects a recent reduction in debt and its belief that the company will sustain solid liquidity backed by substantial cash reserves. It assigned a B1 corporate family rating to Wynn Resorts Finance.
A primary credit concern is that revenue and cash flow are “heavily reliant” on Macau operations. The rating agency said Wynn will seek additional large resort development opportunities globally, such as its project in the United Arab Emirates. Consequently, the company’s leverage may occasionally rise due to debt-financed developments.
See also: Wynn Al Marjan Island: 55% of structural concrete complete
