MGM Resorts International finds itself in the midst of a cybersecurity crisis, leading to staggering daily revenue losses and underscoring the financial impact of cyberattacks on large corporations.
The company anticipates daily revenue losses of up to $8.4 million until it successfully resolves the cybersecurity issues affecting its reservation system and casino operations across multiple states.
According to Jefferies gaming industry analyst David Katz, MGM, which recently fell victim to a cyberattack, faces a potential short-term decline in revenue and cash flow ranging from 10% to 20%, as long as the current conditions persist. Jefferies analysts estimate that MGM generates approximately $42 million in daily revenue and $8 million in daily cash flow across its entire business.
MGM cybersecurity revealed over a week ago, causing disruptions in the company’s systems. In a recent announcement, MGM promptly initiated an investigation with assistance from leading external cybersecurity experts upon detecting the issue. The company also notified law enforcement and implemented measures to protect its systems and data, including the temporary shutdown of certain systems. The cyber incident affected reservations and casino operations in various states, including Nevada, as reported by The Associated Press.
MGM cyberattack has been providing investigation updates on the social media platform X (formerly known as Twitter), indicating that the inquiry is ongoing. The company is actively working to resolve the cyber issue while simultaneously addressing the needs of individual guests.
In a separate development, Caesars Entertainment confirmed a hacker breach of its computer system, resulting in the theft of customer data. Caesars Entertainment acknowledged in a regulatory filing that it incurred specific expenses related to the cyberattack.
Sources familiar with the matter reported that the company paid tens of millions of dollars to prevent the hackers from disclosing its data, as stated by Bloomberg.
