Only five years after it first began granting new casino licenses in 2002, Macau became the largest gaming market in the world, surpassing longtime incumbent Las Vegas in total revenue. By 2011, Macau’s gaming revenue wasn’t merely outpacing Vegas, its $33.5 billion in revenue crushed Sin City’s $6.1 billion by a five-to-one ratio. And Macau’s 42.2 percent year-over-year growth rate in 2011 was a stark contrast to Las Vegas’s 5.1 percent growth.

The former Portuguese colony is currently the only destination in China that offers legalized gambling, and is well situated to attract high rollers from the mainland as well as greater Asia. Macau strictly limits the number of gaming concessions it grants—just six companies are licensed to operate casinos. These casinos—including Wynn Macau—rely heavily on high rollers, whose betting fuels almost 80 percent of Macau’s gaming revenue.

High rollers are largely dependent on junkets to facilitate their gambling. Junkets are middlemen who offer credit to VIP players in exchange for a commission from the casino. There’s some concern that Macau’s growth could be threatened by a slowdown in China because tighter credit markets could curtail junkets’ access to cash.

But even during leaner times, gamblers hardly ever stop betting in Macau. During the global downturn in 2008-09, Macau’s gaming revenue only fell 4 percent compared to a 9 percent plunge for Vegas. Although the torrid pace of Macau’s gaming revenue growth will likely slacken due to a slowdown in China, it’s still forecast to rise another 24 percent this year.

Wynn Macau (HK: 1128), a subsidiary of Wynn Resorts (NSDQ: W YNN), opened its first casino in Macau in 2006. It has since expanded to 265,000 square feet of casino space, offering 24-hour gaming and a full range of private gaming salons for high rollers. The casino boasts two luxury hotel towers with over 1,000 rooms and suites.

In 2011, Wynn Macau’s total casino operating revenue jumped 31 percent to $3.8 billion, while operating profit grew 27.4 percent to $771.8 million.

Although Wynn Macau’s growth has been impressive, it’s losing market share to other casino operators. The company’s market share fell from roughly 14 percent in 2010 to about 11 percent in 2011 largely due to increased competition from new casinos on the Cotai Strip—an area in Macau located five miles away from the main concentration of casinos.

Casino operators are racing to develop new properties on the Cotai Strip. Wynn Macau has already purchased 51 acres of land on the Cotai Strip and recently received a 25-year land concession from the Macau government. The company plans to commence a $3 billion project there that includes building a five-star hotel with 2,000 suites.

Helmed by Steve Wynn, the company’s management has a stellar reputation, but there has been some turmoil among its ranks recently. In February, nonexecutive board member Kazuo Okada was ousted after management discovered Okada had made improper donations to casino regulators in the Philippines.

Okada had been Wynn Resorts’ largest shareholder, but the parent company bought back his stake in the firm for $1.9 billion following his indiscretion. These moves were necessary to save Wynn Macau as well as Wynn Resorts from further regulatory scrutiny and possible sanctions.

Despite this news, Wynn Macau still offers excellent exposure to Macau. And its eventual debut on the Cotai Strip should help it win back market share and boost future growth.