Casino Giant MGM Expects $100 Million Hit From Hack that Led to Data Breach

MGM Resorts International has disclosed that a cyberattack in September will have a significant financial impact, estimating a $100 million hit to its third-quarter results as the company works to recover its systems.

As one of the world’s largest gambling firms, MGM took swift action to shut down its systems upon detecting the attack, aiming to contain the damage. Additionally, the company expects to incur less than $10 million as a one-time cost related to the incident for the quarter ending on September 30.

The attack last month resulted in disruptions to MGM’s operations, with customers posting images on social media showing slot machines displaying error messages and noticeable queues at Las Vegas hotels.

MGM has not confirmed whether a ransom demand was made or paid in connection with the cyberattack.

The breach compromised the private data of customers who had used MGM services prior to March 2019, including contact information, gender, date of birth, and driver’s license numbers. The company also believes that a limited number of Social Security and passport numbers were accessed. However, MGM stated, “We have no evidence that the criminal actors have used this data to commit identity theft or account fraud.”

Typically, cybercriminals may hold stolen data for ransom, leak it in public forums, or sell it to other malicious actors.

The breach is currently under investigation by the FBI and underscores the ongoing vulnerability of large organizations to cybercrime.

MGM clarified that no customer bank account numbers or payment card information were obtained in the breach, and data from its luxury resort hotel, The Cosmopolitan of Las Vegas, remained secure.

The company stated, “The full scope of the costs and related impacts of this issue has not been determined.” It anticipates a negative impact of approximately $100 million on its adjusted property core profit for the Las Vegas Strip division due to the breach. Additionally, the company expects a total occupancy rate of 93% for October, compared to 94% in the same month the previous year.

MGM remains optimistic about the fourth quarter, foreseeing strong results, particularly in November, driven by a Formula One racing event scheduled to take place in Las Vegas.