Are you curious about the explosive expansion taking place in the Las Vegas of China, Macao? What's the big deal, you ask? Why is Las Vegas Sands (NYSE:LVS) prepared to sink more than $10 billion into developing the Coati Strip?

How about recouping your development costs within a year?

Take, for example, the Sands Macau. The $240 million hotel/casino opened in May of 2004. It paid for itself within 12 months. A recent $400 million expansion has already brought in $1 billion. Compared to the typical Las Vegas returns of 20% (max), the profits the Sands and other American companies such as Wynn Resorts (NASDAQ:WYNN) have seen are clear justification for the enormous investments they plan for this area.

The Sands is busy pulling in partners for the Cotai Strip, using the template they employed when they built the Venetian in Las Vegas. They are selling off retail space and lining up hotels including Starwood Hotels, Shangri-La Hotels, Sheraton, Traders, Four Seasons and others to build in the development. Adding to these the revenue from pre-sold luxury condos, and the corporation should recover a huge percentage of their investment before the place even opens.

They are also busy planning for the action after the development opens, too. Already in place are agreements with Cirque du Soleil and the National Basketball Association to bring in special entertainment to build the buzz.

But this development may pale in comparison to the Sands' plans to develop another Macao location, Hengqin Island. There, the 10-year plan has them building up to 80 million square feet of casinos, hotels and other facilities. According to the Las Vegas Sun, the development could yield up to $65 billion in real estate value.

That's some serious bread, man. Even in Vegas terms.

Las Vegas Sands Corp. (NYSE:LVS) has scheduled release of 4th quarter and 2006 results next Monday after NY closes. LVS, owners of top Las Vegas properties the Venetian and the Sands, are key players in the looming development of gaming in the Far East. Currently scheduled to open this year is a landmark property, The Venetian Macao Resort Hotel Casino, which joins its Sands Macao in one of China's special administrative (i.e., capitalism-friendly) regions. An Italian-themed American-owned casino in China! How the world has changed.

The company will also open a new Las Vegas property, the Palazzo Resort Hotel Casino, this year.

LVS is also planning a huge expansion of its footprint in Macao with the Cotai Strip, an integrated development of multiple casino/hotels. It is also working with the PRC to develop a resort and convention property on Hengqin Island. Since gambling revenues in Macao exceeded that of Las Vegas for the first time in 2006, this move doesn't seem like much of a gamble on behalf of LVS.

Another new LVS resort, the Marina Bay Sands, will open in Singapore in 2009.

Earlier this week, Bear Stearns analyst Joseph Greff voiced his opinion that LVS's prospects, based on its aggressive cultivation of the Far East market, were strong. Investors seemed to agree in 2006, driving the stock price from $50 per share to over $100. After next Monday, we should know if it continues to see the same appeal.

Also check out some other earnings reports that we're following, and let us know what you're expecting.