In Macau, the battle between casino giants is intensifying. To defend its market share in the face of increasingly aggressive competition, MGM China is pursuing a bold strategy: enticing its customers with highly coveted Labubu toys and offering them the chance to win a Rolex. It’s an original gamble that illustrates the evolution of marketing in the world’s gambling capital.
A strategic gamble on customer experience
In Macau, the battle to attract players continues unabated. As competition intensifies between the six major casino operators, MGM China has just launched a unique promotional campaign. Customers can now exchange their points for mini Labubu figurines, a highly prized licence in China, and try their luck at winning a Rolex by betting at least HKD 5,000 (approximately £400) on side bets.
This choice is no coincidence. The mini Labubu, released on 29 August, was an instant hit with collectors. MGM is therefore positioning itself as the first casino in Macau to capitalise on this cultural trend by integrating it directly into its loyalty programme.
The response to more aggressive competition
Since the end of COVID-19 restrictions, Macau has been experiencing a gradual but tense recovery. Sands China announced this summer that it intends to adopt a much more aggressive customer reinvestment policy. For its part, Galaxy has stepped up its efforts to attract premium players.
Against this backdrop, MGM’s initiative is seen as a subtle but effective response. George Choi and Timoth Chau, analysts at Citigroup, believe that these promotions are profitable and strategic measures that will not only defend MGM’s market share but also enable it to capture new market share.
MGM China breaks records
Beyond this fierce competition, MGM China can boast of having achieved the best quarter in its history. Its revenues reached an all-time high, mainly thanks to the massive return of tourists to the peninsula.
The question of the sustainability of promotions
MGM is betting on cult items such as Labubu and Rolex watches to attract players. It remains to be seen whether these initiatives will be enough to compete with giants such as Sands and Galaxy, both of which are determined to invest heavily to regain ground.
For now, Citigroup believes that the level of competition remains manageable. But with the gradual recovery of international tourism and the stated intention of several operators to step up their marketing efforts, Macau could well be entering a new phase where player loyalty will be won less on the size of bets and more on the creativity of rewards.