Feb. 10--The early Friday morning exchange was brief. Its tone, enthusiastic. 

Strip developer Steve Wynn had just learned he was part of a wealthy group of investors given preliminary approval to build a Las Vegas-style casino near the southeastern tip of mainland China. 

So he chatted by phone with Venetian builder Sheldon AdelÂson, a leader of the second of three competing groups to receive government approval to move ahead with plans for individual casinos to be built on Macau in the South China Sea. 

The operators of separate, stand-alone casino companies had -- at least for now -- beaten out 18 proposals, including ones by multiproperty giants MGM Mirage and a joint effort of Park Place Entertainment and Mandalay Resort Group. 

Nearly two years earlier, Wynn lost control of his Mirage Resorts to billionaire Kirk Kerkorian, but in this round for gaming preeminence, Wynn had bested the billionaire's executive team. 

"The two builders got it away from the public companies," Wynn enthusiastically reflected hours later. 

Word of the selection of the competing Wynn and Adelson teams by Macau government officials quickly circulated Friday through the casino industry. 

Along with 79-year-old Asian businessman Stanley Ho, the Las Vegans must now meet separately with Macau officials to discuss plans to build what could become three $500 million casinos. 

They will consider the size and scope of the proposals and the casinos' likely settings on the peninsula, which is one-tenth the size of Washington, D.C., and has a population of about 450,000 people. 

The groups will talk with government leaders about infrastructure needs, tax rates and other "amenities or contributions." 

If the Ho, Wynn or Adelson groups fail to strike final deals with the mainland China-controlled government, the Mandalay-Park Place team would make its pitch. If that group fails, it would be MGM Mirage's turn, then the opportunity would fall to Macau Star Limited, a subsidiary of Malaysian-based conglomerate Genting Berhad. 

Construction of the three casinos to replace Macau's dingy, organized crime-ridden offerings, raises questions about their potential effect on Las Vegas' gambling-driven economy. 

Could their development lead to a repeat of the 1990s spread of legalized gambling in the United States and train a new generation of Asian gamblers, many of whom might some day visit Las Vegas? 

Could they cut into Las Vegas' estimated $550 million annual high-roller market because wealthy Asians might prefer one- to five-hour flights to Macau rather than 11- to 17-hour flights to Las Vegas. 

Might they do both? 

"Las Vegas gets a lot of business from the Far East and this will probably siphon some off, but I don't think it will have a material effect," said McDonald Investments casino industry analyst Dennis Forst. "In fact, I think this could create more gamblers and generate extra business for the Strip." 

A top Strip executive who requested anonymity offered another take. 

"Think about it the way we think about Atlantic City," the executive said. "Think about it as an opportunity to expand the whole market for gaming. You have to think of it as growing the pie, and if gaming is going to expand we want to take a piece of it." 

Macau was a Portuguese protectorate for 442 years, and like Hong Kong, was returned to Chinese rule in 1999. The peninsula's six small casinos have been controlled for 39 years by Ho's Sociedade de Turismo e Diversoes de Macau, or STDM, a consortium of investors. 

The government changeover led to a push to broaden Macau's casino ownership as the mainland government reached out to foreign investors. 

Sources familiar with the Ho-controlled casino properties say they are plagued by organized crime's control of individual gaming tables, prostitution and loan sharking. In the last year of Portuguese rule an estimated 37 people died in gang-related killings tied to the trades. 

A decade ago, Harrah's and Hilton eyed casino investments in Australia, their first outside of the United States. Top gaming regulators such as then-Nevada Gaming Control Board Chairman Bill Bible and Reno-born Capitol Hill lawyer Frank Fahrenkopf warned that countries wanting to lure U.S. gaming companies should establish strong rules governing their fledgling casino industries. 

The danger: American gaming companies could lose state-issued licenses because of international troubles, forcing them to shut down their U.S. operations. 

Australian government leaders took note, visited Nevada and New Jersey and set up a regulatory environment reminiscent of the one found in the two states. 

Macau government officials have made similar overtures in recent years to Nevada gaming regulators, although none recently, noted Nevada Gaming Control Board Chairman Dennis Neilander. 

"I know that we have met with representatives of Macau in the past," Neilander noted. "I've not had any conversations with them recently." 

Word of Friday's decision left some casino industry players marveling at the fact that the two Nevada entrepreneurs at least temporarily beat out the bids of such highly diversified publicly held companies as MGM Mirage and Park Place Entertainment. 

In recent months, MGM Mirage Chairman Terry Lanni made several trips to Macau to pitch government leaders on his company's proposal. Park Place Entertainment President and Chief Executive Officer Tom Gallagher also made a lengthy pilgrimage across the international date line. 

"We will continue to work with the government to pursue that opportunity and we remain optimistic that the great advantages of our project and our venture will be made available to the people of Macau," Gallagher said in a statement issued by his company. 

Wynn downplayed questions as to whether he felt some glee for beating out the Strip's big three. 

"I don't think this is a big defeat" for MGM Mirage, Wynn said. "Gallagher's a lovely guy, and I'm very friendly with (Mandalay Resort Group Chairman) Mike Ensign. I don't think they'll be that disappointed." 

Yet, questions remain about the ability of Adelson and Wynn to build gaming properties as they move ahead with their own Las Vegas development efforts. 

Adelson was forced to postpone the 1,000-room expansion of the 3,036-room Venetian because of the worldwide travel decline that followed the Sept. 11 terror attacks on the World Trade Center and Pentagon. 

Wynn has said for months that he is close to receiving financing for his planned $1.63 billion redevelopment of the Desert Inn site. 

So the 60-year-old high-profile executive offered a brief and certain reply when asked Friday whether a Macau project would hinder development of his latest Strip project. 

"No, no," he said. 

By Dave Berns and Jeff Simpson 

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