Wynn Macau pays US$74.5m for the right to use “Wynn” trademark

The new agreement follows the extension of Wynn Macau's licence.
The new agreement follows the extension of Wynn Macau's licence.

The licence fee payable by Wynn Macau equals 3 per cent of the intellectual property gross monthly revenues.

Macau.- Wynn Macau has reported that it has extended its agreement with Wynn Resorts Holdings LLC to continue using “Wynn” related trademarks, copyrights and service marks following the extension of its current casino licence until the end of the year.

It will pay Wynn Resorts Holdings either 3 per cent of gross monthly revenue or HK$11.7m (US$1.5m) per month, whicever is greater, up to HK$584.8m (US$74.5m) for the year ending December 31. The annual cap was determined after arm’s length negotiations between the parties based on the historical amounts paid and anticipated business and financial performance.

For the years ended 31 December 2019, 2020 and 2021, the amounts paid by Wynn Macau under the Intellectual Property Licence Agreements amounted to HK$1.31m (US$168.2m), HK$309.4m (US$39.9m) and HK$385.2m (US$49.6m), respectively.

Earlier this month, Wynn Macau entered into an agreement with its US parent company, Wynn Resorts Ltd, for a US$500m revolving loan facility. Wynn Macau said the loan agreement will support the company’s potential future working capital and other funding needs, if necessary.

For the first quarter of the year, the company reported US$161.2m in net losses and a fall in operating revenues to US$298.4m, down 28.4 per cent when compared to the previous year.

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