X

Wynn Macau Adjusting to Comply with New Gaming Laws

Image Source: Shutterstock.com (Photo by Kit Leong)

Considering this year’s changes that Macau made to its gaming laws concerning operators, Wynn Macau has had to make some adjustments in order to be compliant with the latest regulatory updates.

Capital Restructuring at Wynn Macau

The Wynn Resorts Macau (WRM) unit was subjected to a capital restructuring that answered the need for an increase in registered capital to MOP5 billion ($614.7 million), borne from the changes to Macau’s gaming rules. The previous requirement was only for MOP200.1 million (approx. $24.6 million). As a result, Wynn Resorts injected around $590 million into Wynn Macau’s WRM business unit.

Macau hasn’t been entirely clear about its requirements for a “managing director”, however, Wynn has followed the spirit of the law as closely as possible, with the current chief operating officer (CEO), executive director, and vice chairman Linda Chen, receiving a boost to her voting shares in order to comply with the updated gaming laws.

The regulation states that the managing director of an entity that was granted a gaming license, as is the case with Wynn Macau, must be Macau-based, and must hold a minimum of 15% of the licensee’s voting shares. As such, Chen received an increase in her voting shares to 15%, from the 10% she previously held.

More Technicality Than Grand Shift

According to the voluntary announcement, available on the Hong Kong Exchanges and Clearing website, Wynn Macau has addressed the MOP$4.8 billion difference by issuing new Class A, Class B and Class C shares at a nominal value of MOP$1,000 each. Chen was assigned 729,990 Class A shares, with Wynn Macau being subscribed 2,447,949 Class B shares, and the US-based Wynn Resorts International being subscribed 1,621,961 Class C shares.

Additional clarification was also issued in the voluntary announcement document, which stated the following:

“Given the Class A nominative shares held by Ms Linda Chen have restricted rights and only entitle [her] to the nominal amount of dividend payable, the company will be effectively entitled to a 100% economic interest in WRM.”

This, coupled with the overall voting balance still being in favor of Wynn Macau at 85% (down from 90%), means that the entirety of the group won’t be financially impacted.

The last time Wynn’s Macau operations got a large boost was with a $500 million loan, which was aimed at aiding the company’s operation in the special administrative region (SAR). However, this is materially different, as the current influx of funds comes after the SAR announced the holders of its casino licenses and addresses the changes in gaming laws. Wynn Macau was one of the 10-year gambling licenses, with final negotiations expected to conclude by January 1, 2023.

Categories: Business
Kyamil Nasuf: Kyamil is a big tech fan, who loves hummus on everything and has enjoyed writing from a young age. From essays, through personal art, to news pieces and more serious tech analysis. In recent years he’s found fintech and gambling collide with all his interests, so he truly shares our core passion for the entire gambling scene and furthering the education of the mass citizen on these topics.
X

We use cookies to optimize your experience. If you continue to browse this site, you agree to this use.

We use cookies to optimize your experience. If you continue to browse this site, you agree to this use.

Privacy Settings