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MGM Resorts International Expects $100 Million Profit Reduction Due to Recent Cyberattack

MGM Resorts International, the leading casino operator on the Las Vegas Strip, has announced that its third-quarter profit will be impacted by approximately $100 million due to a recent computer hack.

The company has also incurred less than $10 million in expenses to combat the attack, including costs for technology consulting services and legal fees. However, MGM believes that most of these expenses will be covered by cybersecurity insurance.

Despite the breach, the company assures that the damage has been contained. However, hackers have accessed customers’ personal information who visited the resorts before March 2019, such as Social Security and passport numbers.

In response to the attack, MGM swiftly shut down its systems to protect customer information and is conducting a thorough investigation.

CEO Bill Hornbuckle assured customers of the company’s dedication to mitigating risks and maintaining privacy. Reports suggest that the hackers accessed MGM’s computer systems by deceiving IT service desk staff.

It is worth noting that Caesars Entertainment Inc. also fell victim to the same group and opted to pay them off.

The cyberattack severely impacted MGM’s casino and hotel operations nationwide.

Guests had to provide their information through clipboards during check-in manually, and slot machine payouts were made in person instead of paper vouchers.

Furthermore, credit card usage and online room reservations were temporarily unavailable. As a result, the company reported an 88% hotel occupancy rate in September, compared to 93% in the previous year.

However, MGM anticipates a return to normalcy in October and November, especially with the upcoming Formula One race.

MGM ensures customers that no passwords or bank account information were compromised, and there have been no reports of identity theft or fraud related to the hack.

The company remains committed to enhancing its security measures to prevent future incidents.