Wynn Macau Ltd has extended framework agreements with three wholly-owned subsidiaries of its parent firm, Wynn Resorts Ltd, that will see it continue to receive a range of services related to the provision of some US resident staff, plus marketing and architectural design.
The extensions, all for a period of three years from 1 January 2021 to 31 December 2023, cover not only services to be provided but also set new annual caps on the amount to be paid by Wynn Macau Ltd to each of the Wynn Resorts subsidiaries.
The agreements, each signed by Wynn Macau Ltd’s own wholly-owned subsidiary Wynn Resorts (Macau) S.A, will see the Macau company pay all costs to its Las Vegas parent plus a 5% fee.
They include the provision of US resident staff by Worldwide Wynn, with costs capped at HK$76.2 million (US$9.8 million) in 2021, HK$114.9 million (US$14.8 million) in 2022 and HK$141.7 million (US$18.3 million) in 2023. Wynn Macau Ltd currently employs 15 US resident staff, the company said, each of which has a formal employment arrangement with a US-incorporated entity allowing them to continue to enjoy certain benefits relating to pensions, personal income tax and health and life insurance.
A second agreement has been renewed with Wynn Marketing to provide marketing services to Wynn Resorts (Macau) S.A.
“These services include the development, implementation and operation of an international promotional and marketing plan for WRM’s casino resorts. The marketing services provided by Wynn Marketing benefit the Group because marketing efforts conducted through a uniform marketing plan for all casino resorts bearing the ‘Wynn’ brand name ensure that a consistent image and style is and will be adopted globally,” Wynn Macau Ltd said. The marketing cap rises from HK$56.1 million (US$7.2 million) in 2021 to HK$80.8 million (US$10.4 million) in 2023.
The third agreement, capped at HK$68.4 million (US$8.8 million) in 2021 rising to HK$117.2 million (US$15.1 million) in 2023, will see Wynn Design & Development provide certain design services for the company’s projects in Macau, including the “development, design and construction oversight of Wynn Palace and enhancement and renovation works at Wynn Macau and Encore.”
“The design services provided by Wynn Design & Development benefit the Group by contributing to the design and enhancement of Wynn Palace, Wynn Macau and Encore,” it said.
According to Wynn Macau Ltd, the annual increases reflect anticipated business growth in the coming years.
