There are two ways motherboards deal with this. One is to allocate fewer PCIe lanes as you put in more PCIe devices (as you surmised) - the method they do this is usually described in the technical specifications for the motherboard.
The other way on high-end motherboards is to add a PLEX chip that will handle multiplexing of the PSIe lanes - so each slot can have more lanes, and the PLEX chip will miltiplex them together on the PCIe lanes for the CPU (highly simplified).
http://www.gigabyte.com/products/product-page.aspx?pid=4980#sp
Under Expansion Slots you can read how it handles up to three cards in the PCIe slots (hint at three cards, it drops down to PCIe 2.0 standards).
I'm puzzled how it will support 4 cards in SLI, since they don't mention that part and it does not have a PLEX chip as far as I can tell. The price is also indicative that it doesn't have a PLEX chip. Those usually drive the price to >$200.
Edit: I now read where some reviews does say that it has a PLEX chip, so all should be good. MeteorsRaining has all the right info in his post that you already selected as Best.