If they've had enough of well-known U.S. casino companies' China adventures, U.S. investors looking Far Eastward might check out lesser-known Chinese companies.

There are six licenses for Macau, China's only site for legalized gambling. Three from the U.S. and three from China (followed by market share data from Galaxy Entertainment Group market analysis):

U.S.-Based Licensees
Las Vegas Sands (NYSE: LVS) -- 26.0%
Wynn Resorts (Nasdaq: WYNN) -- 13.5%
MGM Mirage (NYSE: MGM) -- 8.0%

China-Based Licensees
SJM Holdings -- 31.5%
Galaxy Entertainment Group -- 12.0%
Melco Crown Entertainment (Nasdaq: MPEL) -- 9.0%

Shares of each China-based company have risen strongly over the past six months, although Galaxy and Melco Crown are in the red for the last 12 months. SJM is up modestly since going public last July.

Similarities and differences
There are some similarities between U.S. and China companies. Both are being hurt by the government's restrictions on visits to Macau and by the worldwide recession. Both contributed to a 12.8% drop in Macau gambling revenue for the first quarter versus the year-ago period.

But whereas U.S. companies have diversified portfolios of gambling operations, SJM and Melco Crown focus solely on Macau gambling. Galaxy offers gambling and construction materials in China.

Different degrees of transparency
Melco Crown is the easiest to evaluate. It must follow standard Securities and Exchange Commission reporting rules because its American depositary shares (ADSs) are listed on Nasdaq. Each depositary share is worth three ordinary shares traded on the Hong Kong Stock Exchange.

First-quarter revenue dropped 55% versus the year-ago period. The company lost $0.08 a share versus a $0.10 gain for the year-ago quarter.

Excluding the new City of Dreams, the company runs a large casino/hotel as well as small gambling clubs that are common in Macau. Melco Crown is controlled by two shareholders -- a Chinese company and an Australian company.

Although Melco Crown is the new kid on the Macau block, it has the best immediate growth potential thanks to the opening of City of Dreams, which CEO Lawrence Ho calls a "turning point" for his company.

Ho was more blunt in a recent interview with Bloomberg, saying that if this casino opens poorly, his company will be finished.

A more balanced portfolio
If you want to invest in Galaxy, you can contact a securities dealer registered with the Hong Kong Stock Exchange. Or you can buy over-the-counter shares in the U.S. for a Level 1 American depositary receipt (ADR).

Reporting requirements to the SEC and accounting requirements for a company issuing this type of share are less strict than a Nasdaq-listed company. Each Galaxy depositary share is worth 10 ordinary shares on the Hong Kong exchange. The over-the-counter symbol is GXYEY.

Galaxy manages four smaller casinos, and it owns and operates a large casino/hotel. Continued...