The casino world is no stranger to flashy promotions, but MGM China has just raised the bar in an unexpected way. Picture this: you’re playing your favorite table games in Macau, and instead of the usual comp points for a free meal or hotel night, you can redeem your rewards for adorable mini Labubu toys – those fuzzy, slightly mischievous creatures that have taken the world by storm. And if you’re feeling particularly lucky with your side bets, you might just walk away with a genuine Rolex watch.
This isn’t your typical casino marketing playbook. MGM China’s latest promotional campaign represents a fascinating intersection of pop culture phenomena, luxury aspirations, and fierce competition in the world’s largest gambling hub. The strategy comes at a crucial time when Macau’s gaming landscape is experiencing dramatic shifts, with new luxury properties opening their doors and established operators fighting harder than ever for market share.
The Little Monsters Taking Over the World
To understand why MGM China chose Labubu toys as their promotional centerpiece, you need to grasp just how massive this cultural phenomenon has become. Created by Hong Kong artist Kasing Lung in 2015 as part of “The Monsters” toy line, these elf-like creatures with their signature nine-tooth grins and pointed ears remained relatively niche until Pop Mart, a Chinese toy company, began mass-producing them in 2019.
What happened next was nothing short of extraordinary. By 2024, Labubu had evolved from a designer toy into a global obsession. Pop Mart’s revenue skyrocketed to over $4 billion, with Labubu sales alone growing by more than 1,200% year-on-year. The craze caught fire when celebrities like Rihanna, Lisa from Blackpink, and Kim Kardashian began showcasing their collections on social media.
The magic lies in Pop Mart’s “blind box” business model – customers never know which version they’re getting until they open the package. This element of surprise, combined with Labubu’s deliberately imperfect “ugly-cute” aesthetic, tapped into something deeper than just toy collecting. As one collector explained, “Something small, like a Labubu, a blind box, is like a little bit of excitement” in an otherwise mundane adult life.
Chinese customs officials recently seized over 70,000 counterfeit Labubu dolls, highlighting the brand’s incredible popularity and the extensive counterfeit market that has sprung up around it. Pop Mart now operates over 2,000 vending machines globally, with international sales accounting for 40% of their revenue in 2024. The company’s stock has surged over 500% in the past year, making it one of the most successful consumer goods stories coming out of China.
MGM China’s Remarkable Casino Comeback Story
MGM China’s decision to embrace Labubu promotions comes from a position of strength that few could have predicted just a few years ago. The company has engineered one of the most impressive market share turnarounds in Macau’s recent history, climbing from below 10% before the pandemic to over 16% by 2024.
The numbers tell a compelling story of recovery and growth. In 2024, MGM China posted record-breaking results with net revenue reaching HK$31.4 billion, representing 138% of their 2019 pre-pandemic levels. Their adjusted EBITDA hit an all-time high of HK$9.1 billion, up 25% from the previous year. Most impressively, their market share reached 15.8% in 2024, nearly doubling from their 9.5% share in 2019.
The second quarter of 2025 continued this upward trajectory with net revenue of HK$8.7 billion and adjusted EBITDA of HK$2.5 billion, maintaining a healthy 29% margin. Property visitation grew 12% year-over-year, reaching 175% of 2019 pre-COVID levels. Daily gross gaming revenue increased 12% year-over-year to MOP111.2 million, demonstrating sustained momentum in attracting players.
This transformation didn’t happen by accident. MGM China invested heavily in understanding what premium mass customers wanted, from the padding in their carpets to the lighting and game positioning on their casino floors. As Bill Hornbuckle, CEO of parent company MGM Resorts International, explained, “We went deeply into that in the context of asking customers what they wanted to see, what they wanted to do, what they wanted to participate in, and I think we’ve been rewarded for it.”
The company maintains a robust financial position with total liquidity of approximately HK$22.5 billion and achieved an impressive 94% average hotel occupancy rate. Their success has been built on catering to the premium mass market, which offers better profit margins compared to traditional VIP programs that once dominated Macau’s gaming scene.
The Battle for Macau’s Premium Players Intensifies
MGM China’s Labubu promotion isn’t just about cute toys – it’s a strategic response to intensifying competition as Macau’s casino landscape undergoes dramatic changes. The opening of Sands China’s revamped Londoner Grand and Galaxy Entertainment’s ultra-luxury Capella hotel has significantly altered the competitive dynamics.
Sands China’s Londoner Grand represents a $1.2 billion transformation that has already started paying dividends. The property’s market share climbed 200 basis points month-over-month in May 2025 to reach 23.5%, primarily attributed to the launch of additional Londoner Grand rooms and strategic promotional activities. The renovation reduced total room inventory from over 4,000 to a curated collection of 2,405 keys, positioning the property squarely in the premium mass market.
Galaxy Entertainment has also emerged as a major winner, gaining 100 basis points in market share to reach 21% following the soft opening of the Capella Hotel in early May 2025. The Capella represents the pinnacle of luxury hospitality in Macau, designed with a sophisticated tropical jungle aesthetic by Paris-based firm Moinard Bétaille. The 17-story hotel features nature-infused elements and has been strategically positioned to capture the ultra-high-end market.
This competitive pressure has forced all operators to become more aggressive. Sands China publicly announced in July that it would take a “much more aggressive stance on customer reinvestment” in response to recent market underperformance. The company has particularly focused on expanding into the Korean market, which saw visitor growth rates of over 30% in the first quarter of 2025.
Citigroup analysts note that while competition has intensified, it remains “manageable” among Macau’s six gaming operators. The investment bank’s monthly table surveys show that Sands China has recently gained market share in the premium mass segment, driven by high-stakes players including one HKD2 million player and five other high rollers placing bets ranging from HKD100,000 to HKD170,000.
Why Rolex Watches Make Perfect Casino Prizes
The Rolex component of MGM China’s promotion adds another layer of sophistication to their marketing strategy. For side bets totaling HKD5,000 (around $640) or more, players have a chance to win a genuine Rolex watch – a prize that resonates deeply with the aspirational mindset of premium mass customers.
Rolex giveaways have become increasingly popular in the gaming and hospitality industry worldwide. From Singapore jewelry stores offering Rolex prizes for purchases over $1,000 to U.S. casinos hosting “Great Rolex Watch Giveaway” events, the Swiss luxury brand represents the ultimate symbol of success and achievement. The brand’s slogan “A Crown for Every Achievement” perfectly aligns with the gambling mentality of risk and reward.
The appeal of Rolex prizes in casino promotions goes beyond mere luxury. These timepieces represent tangible, lasting value that transcends the temporary thrill of gambling winnings. Unlike cash prizes that might quickly disappear, a Rolex watch serves as a permanent reminder of a player’s lucky day at the tables.
For MGM China specifically, the Rolex promotion targets the sweet spot of their customer base: players willing to make substantial side bets but not necessarily in the ultra-high-roller category. The HKD5,000 threshold for eligibility is carefully calculated to encourage increased betting while remaining accessible to their core premium mass audience.
The timing of this promotion is particularly strategic. Macau’s gross gaming revenue surged 23.9% year-over-year to MOP226.78 billion in 2024, with premium mass players driving much of this growth. However, the first half of 2025 has shown more modest gains, making promotional activities crucial for maintaining player engagement and market share.
When Casino Promotions Get Personal
The casino industry’s reaction to MGM China’s promotional activities has been mixed, with some competitors publicly criticizing what they see as “crazy behavior” that could destabilize the market. Melco Resorts Chairman Lawrence Ho specifically referenced the “crazy behavior” of some rival operators, expressing hope that the rollout of smart table technology would level the playing field.
Bill Hornbuckle has consistently pushed back against such criticism, pointing to MGM China’s healthy 29% margins as evidence that their promotional spending remains rational. “I just query that criticism and I challenge it,” Hornbuckle stated during an earnings call. “And frankly, if we had retail to the extent that two of our competitors do, margins would be in the low-to-mid 30s.”
The MGM CEO acknowledged that his company has been a pioneer in many competitive promotional strategies now widely seen across Macau, but rejected claims that the situation has ever gotten out of control. Speaking at the Bank of America Securities 2025 Gaming & Lodging Conference, Hornbuckle stated that while the Macau market is “always aggressive,” regulatory oversight serves as an effective check and balance.
Interestingly, Citigroup analysts characterized MGM’s recent initiatives as cost-effective measures likely to help the company defend and potentially grow its market share. The investment bank noted that MGM appears to be the first casino operator to offer mini Labubu toys for point redemption, capitalizing on a cultural phenomenon that resonates particularly well with younger demographics.
The promotional arms race in Macau reflects broader changes in the market structure. The collapse of the traditional junket system has forced operators to compete more intensively for premium mass customers, who now represent the most profitable and sustainable segment of the market. This shift has led to more creative and culturally aware promotional strategies, of which the Labubu campaign is perhaps the most innovative example.
What This Means for the Future of Casino Marketing
MGM China’s Labubu and Rolex promotion represents more than just another marketing campaign; it signals a fundamental shift in how casinos engage with their customers in the post-pandemic era. The success of this initiative could reshape promotional strategies across the gaming industry, particularly in a world that is grappling with intense competition from online venues such as crypto casinos.
The choice of Labubu toys demonstrates a sophisticated understanding of contemporary consumer psychology. In an age where social media drives much of consumer behavior, offering prizes that are inherently shareable and Instagram-worthy creates viral marketing potential that extends far beyond the casino floor. The blind box element adds an extra layer of excitement that mirrors the gambling experience itself.
Looking ahead, Macau’s gaming market faces several challenges that could influence the effectiveness of such promotional strategies. The government has lowered its 2025 gross gaming revenue forecast to MOP228 billion, citing weaker-than-expected performance in the first five months of the year. Regional competition from Japan, Thailand, and the UAE is also intensifying, though experts believe Macau’s position as the premier Asian gaming hub remains secure.
The success of culturally-aware promotions like the Labubu campaign may encourage other operators to explore similar partnerships with trending brands and phenomena. This could lead to a new era of casino marketing where understanding and leveraging pop culture becomes as important as traditional gaming incentives.
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