Macau, a special administrative region of China, is the only place in the county where gambling is legal. The gambling industry there started in 1962 when the government issued a single license to Stanley Ho. The monopoly ended in 2002 and several licenses were handed out. By the time Wynn Macau opened in 2006, the market has surpassed Las Vegas as the world's largest gaming market.

Las Vegas Sands Corp., which operates two casinos in Macau, last week completed the sale of $600 million in bonds in advance of its expected initial public offering of operations there on the Hong Kong Stock Exchange. It filed its application for the listing last month, shortly after negotiating a deal with Bank of Nova Scotia whereby it is now allowed to sell as much as a 49.9% stake in its Macau operations--as long as a healthy chunk of the net proceeds are used to pay down its subsidiaries' $3.3-billion credit facility with the bank.Wynn's disclosure statement detailed its existing resort there, Wynn Macau, the adjacent one under construction, Encore at Wynn Las Vegas, and its plans for a 52-acre development in Cotai. "We believe our brand name and high quality offerings, focus on service and attention to detail allow us to more effectively penetrate the premium segments of the gaming market than other operators," it states.

Indeed. Wynn's market share of table revenues in Macau in 2008 was 16.4% while its market share of actual table games was 8.9%. Its net win per gaming table in 2008 was HK$118,968.7, nearly double the daily gross win per gaming table in the overall Macau market. In addition, its average daily slot win of HK$2,661.8 in 2008 was more than double the overall Macau market average.

Wynn Macau's total operating revenues in 2008 were HK$14.7 billion and its profit was HK$2.04 billion. Through the first half of 2009, its total operating revenues were HK$6.7 billion and its profit was HK$903.7 million.

The following is a listing of other salient facts detailed in the disclosure statement:

• The Macau gaming market, which attracted 22.9 million visitors in 2008, principally from mainland China and Hong Kong, generated HK$105.6 billion in gross gaming revenues in 2008, more than double the HK$46.7 billion generated during the same period by the Las Vegas Strip, where gaming revenues are running 24% below its 2007 peak. Through the first half of 2009 Macau generated HK$49.9 billion in gross gaming revenues.
• Macau reported HK$64,678.1 daily gross win per gaming table in 2008, approximately three times the HK$21,531.4 reported for the Las Vegas Strip for the same period.
• Wynn Macau includes a 205,000 square foot casino; 600 luxury rooms and suites; five casual and fine dining restaurants; a 46,000-square-foot upscale retail promenade; a one-acre performance lake, and; recreation and leisure facilities, including a spa, salon, fitness complex and pool and lounges and meeting facilities.
• Encore at Wynn Macau is expected to open in the first half of 2010. It will include its own mass market and VIP gaming areas ; 400 luxury suites; four 7,000-square-foot villas connected to a private gaming salon; a sky casino; and space for three new retailers and two new restaurants. The total development cost is HK$3,131.8 million. Completion of the project is fully funded through a combination of existing cash balances and cash flow from operations.
• Wynn's Macau operation is close to gaining control approximately 52 acres in Cotai, a strip of reclaimed land that connects Macau's islands of Taipa and Coloane. Its would-be indirect wholly owned subsidiary Palo Real Estate Company Limited is currently awaiting final approval of its application to the Macau government for the right to lease the parcel, which sits immediately east of Melco PBL Entertainment's $2.4 billion City of Dreams development.