The world's third richest man just won approval from the Chinese government to turn Macau's tiny Cotai Strip into the world's new center of gambling today. Here's the quick overview and some background below from Reuters:

Las Vegas Sands' proposal to develop a resort on a little-known Chinese island had won government support, the firm said on Thursday, after its shares surged more than a 10th on an analyst's report that the $9-$12 billion project had secured approval.

The world's top casino operator by market value had won approval to build a resort on Hengqin Island, near the Chinese gambling mecca of Macau, Jefferies & Co. analyst Lawrence Klatzkin wrote in a research note, citing Sands management.

Such a project would come on top of its elaborate, multibillion-dollar plans for casinos in Macau and bolster its position as one of the leading resort developers in Asia.

But the corporation stressed on Thursday that the project awaited official approval, and that the government of the city of Zhuhai -- which oversees Hengqin -- had merely set up a group to help "advance" the plan.

Also, the company did not say if the central government -- which typically gets involved in multibillion dollar deals involving multinationals -- had got involved at this stage.

"While the formation of a Project Coordination Committee is a positive step forward, the project remains subject to governmental approvals customary for projects of this scale," it said in a statement.

Shares of the company closed up 11.3 percent at $102.81 on the New York Stock Exchange, setting a fresh 52-week high.

Las Vegas Sands has said its plan for Hengqin Island covers roughly 80 million square feet of space, with the company expecting the development to cost $9 billion to $12 billion over the next 10 years or so.(read more)