The sale of a subconcession in Macau turned a US$9.2 million loss a year ago into a US$715.7 million third-quarter profit for Wynn Resorts Ltd. The one-off payment amounted to US$900 million, paid by Australian firm Publishing and Broadcasting Limited for the subconcession right to develop casinos in Macau. Without this payment Wynn estimated that it had lost a penny per share in the quarter. The results included the first 25 days of operation at Wynn Macau, which generated net revenue of US$2.3 million. Approximately 81.2% of revenue came from play at the 212 table games at the casino.

Stanley Ho, long-time casino magnate in Macau, has often hit out at what he calls unfair competition in the gaming market. His accusations are mainly based on commissions paid to Macau junket agents, and heated exchanges have been waged between Ho and Las Vegas Sands’ Sheldon Adelson. Associated Press today reports that Stanley Ho has hired Frank McFadden, the COO of his rival’s Venetian Macau Ltd, as Sociedade Jogos de Macau (SJM) president of joint ventures and business development. Venetian Macau Ltd operates Sands Macao Casino and is constructing the Macao Venetian Casino.

Also in Macau news is the recent firing of 160 Sands Macao employees, all local. Officials called the firing an ‘isolated incident’ although the Secretary of Commerce and Finance was quoted as saying such things happened ‘quite frequently.’ The reason given for the firings by Sands Macao was failure to fulfill working standards. The Labour Affairs Bureau will conduct an investigation to ensure the dismissals were legal and reasonable. (E-11.08.06)

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