Wynn Resorts Ltd. announced that it has received a $1.5bn credit line form the Bank of China. This comes as the government of Macau continues to increase pressure on the casino operator.
Per the terms of the agreement, Wynn is bound to “certain mandatory prepayment provisions” if the legal status of casinos are revoked in Macau. The credit line also allows Wynn to borrow another $1bn if other conditions are met.
Wynn said the credit line will mainly be utilized to refinance debt of Wynn Macau and its subsidiaries, as well as directed at paying for ongoing working capital needs for general corporate purposes.
The announcement of this credit line comes in conjunction with Macau’s intentions to tighten restrictions on casino operators. This goes as far as appointing government officials to supervise companies within Macau.
Specifically, officials began a 45-day public consultation period on September 15 in an attempt to discuss legal revisions, including how many operators should receive licenses, how long licences will last and how much involvement the government will have.
This news led to a dramatic drop in Wynn Macau’s stock prices, falling 29% in one day.
Today Wynn’s US-based sports betting branch, WynnBet, has announced a partnership with the Indianapolis Colts to become the teams official sportsbook sponsor. The agreement will see WynnBet operate a sportsbook and sports bar in the upstairs level of the Lucas Oil Stadium.