The once sleepy Portuguese colony in southern China is slowly surpassing the American gambling capital, Las Vegas, as the world's biggest and favorite gambling destination.

America's top gaming companies are spending billions of dollars in Macao to turn it into the new Las Vegas -of Asia-.

Since the end of the government’s casino monopoly in 2001, U.S. gambling giants are investing billions of dollars in Macao.

Las Vegas Sands Corporation built the world's largest casino in 2004, and next year, it will open The Venetian Macao -a copy of its flagship property in the US-.

Mark Brown, CEO of Sands Macao, says The Venetian will create a new market here, attracting gamers but also shoppers, tourists and businessmen.

”You're going to have all the elements of Las Vegas. Shows, unbelievable entertainers will be coming, restaurants, shopping... I think a cluster of shops that's nowhere in the entire world. When you have all that in a building, in buildings, plus in an area that's true destination gaming, it will far surpass Las Vegas,” Brown said.

But The Sands is not the only gambling giant investing in Macao, the billion-dollar high-end Wynn casino resort opened in September and MGM Mirage is building its own billion-dollar complex to open in 2008.

Foreign competition is forcing its old players to keep up, that’s why Stanley Ho, who held the casino monopoly for decades, is building a new property due to open early next year, The Grand Lisboa.

The main reason for all this investing is that casino operators are betting on China's growing wealth and its reputation for high rollers. Ten million Chinese tourists visited Macao last year and the casinos have been a major draw.