Wynn Macau said it has set an annual cap of about $150 million for intellectual property license fees payable to a unit of its parent company Wynn Resorts in 2026, under continuing connected transactions.
The Macau casino operator said the cap, equivalent to around HK$1.17 billion ($150 million), applies to fees paid under intellectual property license agreements with Wynn NKH, LLC, a wholly owned subsidiary of US-based Wynn Resorts.
Under the agreements, which took effect on January 1st, 2025, Wynn Macau and its operating arm Wynn Resorts (Macau) are licensed to use Wynn Resorts’ trademarks and other intellectual property.
The license fee is calculated as the higher of 3 percent of the group’s gross monthly revenue derived from the licensed intellectual property, or a fixed minimum of $1.5 million per month.
The agreements replaced earlier intellectual property license arrangements dating back to 2009 and have a perpetual term, subject to termination under specified conditions, including changes in control or material regulatory events affecting gaming licenses.
Wynn Resorts is the controlling shareholder of Wynn Macau, holding about 72 percent of its issued share capital, making the transactions “continuing connected transactions” under Hong Kong listing rules.
Wynn Macau said the annual cap for 2026 was determined after arm’s-length negotiations, taking into account the fee formula, historical payments and the group’s expected business performance. The cap is similar to that set for 2025.
