Catching up to Las Vegas

When the Macau government opened its gambling market to foreign investment a few years ago, it sought companies that could help transform the Chinese seaport from a seedy outpost into a top luxury resort destination where gambling is but one of many popular attractions.

The former Portuguese colony wanted to accomplish what it had taken about 40 years to achieve in Las Vegas, where at least half of the Strip's revenue is generated beyond the casino floor.

One of Macau's top choices for the job was Las Vegas Sands, a company officials wanted so badly they created a new ownership system, called a subconcession, to accommodate it. The subconcession with Galaxy Entertainment, a Hong Kong construction supplier with political contacts, would pave the way for Las Vegas Sands to begin work on the Asian equivalent of the Las Vegas Strip.

Although tourists might not be booking shopping trips soon, experts say the Sands' Venetian Macau, the $2.4 billion replica of its Las Vegas resort that opened last month, already is accelerating Macau's Vegas-like transformation by growing that market.