Wynn Macau has confirmed the annual cap for fees payable under its intellectual property licensing agreements for the year ending December 31 2026, according to a statement issued by the company.
The monetary cap has been set at HK$1.1657bn (US$150m), covering the fees payable by Wynn Macau and its subsidiary Wynn Resorts (Macau) S.A. to Wynn NKH, LLC.
The announcement follows the implementation of new IP licensing agreements on January 1 2025, which replaced previous arrangements dating back to 2009.
Under the agreements, the fee is calculated as the greater of 3 percent of the group's gross monthly IP revenue or a minimum monthly payment of US$1.5m, equivalent to approximately HK$11.7m. The cap was determined after arm's length negotiations and reflects historical payments as well as anticipated business performance for 2026.
Historical payments under the previous and current IP structures show HK$770.1m paid in 2023 and HK$908.9m in 2024, with HK$437.4m recorded for the first half of 2025. The 2025 annual cap was previously set at HK$1.1675bn.
The company stated that directors, including independent non-executive directors, consider the new cap fair and reasonable and believe the agreements remain in the ordinary course of business. The IP arrangement allows Wynn Macau to continue using Wynn trademarks, service marks, domain names and related branding.
Because Wynn Resorts is the controlling shareholder of Wynn Macau, the transactions fall under continuing connected transactions as defined by Hong Kong's Listing Rules. They are therefore subject to reporting, announcement and annual review requirements, although exempt from shareholder approval.
Wynn Macau noted that the licensing agreements provide long-term branding stability and form part of its broader operational structure in the Macau market.
The cap is the higher of the HK$ or US$ limit, calculated using an exchange rate of US$1 = HK$7.7711
