The Macau Daily Times has a report today saying that Wynn Macau has applied to the government for a land concession on its 202,000-sq-m site in Cotai. The report went on to point out that Wynn will have to pay US$50 million to an unrelated third party to relinquish its rights to the land in question once the concession is granted. The newspaper then went a step further, adding some interesting background color by giving an abbreviated history of that neighborhood in Cotai, which involved land swaps and repurchases between the government, the University of Science and Technology, and Melco-Crown (for City of Dreams). Read the full story online at MDT.

Land allocations in Cotai were devised back in a different era in Macau, before the Ao Man Long scandal erupted. Needless to say, they all – every one of them – involved significant business and political interests. And because they were all on what was once considered Chinese state-owned land – i.e., the water from which they were reclaimed – their allocation was taken to a higher level of intrigue than Macau had previously been accustomed to dealing with. It is amazing that foreign players such as Wynn were able to navigate these waters in the first place and secure – if secure is the right word – development rights on Cotai. And it was always inevitable that they would have to pay off middlemen to secure those rights. This ain’t Kansas, Toto. The real question is why Wynn is coming under the spotlight right now. These disclosures were made in its IPO prospectus and reiterated in its quarterly results this year. This is standard operating procedure under US securities law, but by Chinese socio-politico-cultural standards, somebody somewhere is undoubtedly going to be feeling uncomfortable right now. Coming just a day after the land bureau chief announced the government was looking at land concession contracts again, it might just be coincidental timing. But it might not be. Curiouser and curiouser, as Alice once said. Stay tuned.

Used with permission and copyright to IntelMacau