The total amount of commission paid by Wynn Macau to VIP gaming promoters grew by nearly 70% in the financial year ended 31st December 2010, to HK$5.8 billion (US$745.8 million) the company said in its annual report. That was well ahead even of the underlying growth in Macau gross revenue, which averaged 58% across the year compared to 2009.
The company said the reason was increased volumes of VIP play and the addition of three new high roller or ‘junket’ promoters to Wynn Macau and its extension Encore at Wynn Macau. The company didn’t say whether it had increased the percentage of commission paid to the promoters during 2010 compared to a year earlier, but did state that promotors receive “a complimentary allowance based on a percentage of the turnover their clients generate”. The latter may give Wynn Macau some wiggle room to boost incentives to junket promoters.
“The total amount of commissions netted against casino revenues were HK$5.8 billion and HK$3.4 billion for the year ended 31 December 2010 and 2009, respectively,” said the company.
“Commissions increased 69.7% for the year ended 31 December 2010 compared to the year ended 31 December 2009 due to increased volumes of play generated by gaming promoters and the addition of three new gaming promoters. Additionally, gaming promoters each receive a monthly complimentary allowance based on a percentage of the turnover their clients generate,” the annual report explained.
“Approximately 80% of these commissions are netted against casino revenues, because such commissions approximate the amount of the commission returned to the VIP players by the gaming promoters, and approximately 20% of these commissions are included in other operating expenses, which approximate the amount of the commission ultimately retained by the gaming promoters for their compensation,” the company added in its commentary to the 2010 results.
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