MGM Resorts Lose $100 Million

MGM Resorts, a renowned name in the hospitality and entertainment industry, recently experienced a substantial cyberattack, the details of which they initially kept under wraps. However, thanks to their filing with the Security and Exchange Committee (SEC), the company’s response and the repercussions of the breach are coming to light. In this article, we will delve into the specifics of the cyberattack, its significant financial implications, its impact on customers, and explore MGM Resorts’ response. Read more about MGM´s $100 Million Loss.

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MGM Resorts' $100 Million Loss

MGM Resorts’ $100 Million Loss | Cybersecurity crisis

Amid the cybersecurity crisis, MGM Resorts took a principled stand by refusing to pay a ransom to the hackers. Nevertheless, the company revealed that they anticipate a substantial loss, amounting to at least $100 million during the third quarter of the year. Most of these losses were incurred during this time period. The financial impact was further aggravated by the fact that the company’s September occupancy rate dropped from 93% to 88% compared to the previous year. Despite this, MGM Resorts has assured its shareholders and customers that their cybersecurity insurance will cover the considerable financial impact on the business.

MGM´s $100 Million Loss | Recovery Projections

In the wake of this cyberattack, MGM Resorts and Casinos is steadfast in its determination to regain stability and return to business as usual. The company is projecting a recovery in its occupancy rate by October, aiming for a 93% occupancy rate for the month. This projection is only slightly lower than the 94% occupancy rate recorded in October of the previous year. Furthermore, the company is looking ahead to a promising fourth-quarter revenue, attributing part of this optimism to the upcoming Las Vegas Grand Prix scheduled for November.

Impact on Financials

MGM Resorts, in its 8-K SEC filing, elucidated the extent of the damage caused by the cyberattack. While the operational disruption experienced during September had a notably adverse impact on their third-quarter 2023 results, with Las Vegas operations being hit hardest, the company believes this impact will be minimal during the fourth quarter. Despite the substantial projected losses, MGM Resorts is confident that this cyberattack will not have a material effect on its overall financial condition and results of operations for the year.

CEO Bill Hornbuckle’s Response

The CEO of MGM Resorts, Bill Hornbuckle, recognized the importance of addressing the impact of the cyberattack on customers, taking proactive steps to communicate the company’s response and commitment to rectify the situation.

MGM´s $100 Million Loss | Swift Response

Hornbuckle emphasized the company’s immediate response to the cyberattack. MGM Resorts acted swiftly by shutting down their systems to mitigate the risk to customer information. Subsequently, they initiated a thorough investigation of the attack, collaborating with federal law enforcement agencies and enlisting the expertise of external cybersecurity professionals.

Minimal Data Compromise

Reassuringly, the CEO stated that the cyberattack did not compromise any customer bank account numbers or payment card information. However, it did result in the exposure of certain customer information.

Customer Information at Risk

The cyberattack on MGM Resorts had repercussions that extended beyond financial losses, with the breach compromising the personal data of customers who had visited MGM Resorts properties before March 2019. The breach exposed a trove of sensitive information, including names, contact details, gender, date of birth, and even driver’s license numbers.

  • Names: The attackers gained access to the names of these customers, which are a fundamental piece of personal identification. Names not only form the basis for communication but are also used in various official documents and records.

  • Contact Details: Customer contact information, such as email addresses and phone numbers, was also part of the data accessed. Contact details are essential for ongoing communication, and they can be misused for phishing or spam if in the wrong hands.

  • Gender: While seemingly innocuous, gender information was also compromised. This data can be used for targeted marketing or, in the wrong context, potentially lead to identity-related issues or scams.

  • Date of Birth: A person’s date of birth is a critical component in identity verification. It’s used in various official processes, and its exposure can heighten the risk of identity theft.

  • Driver’s License Numbers: Among the most sensitive pieces of information accessed were driver’s license numbers. These numbers are typically used for identity verification and are linked to an individual’s official identification. Their misuse can lead to severe consequences, including identity theft and fraudulent activities.

MGM Resorts’ Response to Customers

In recognition of the potential impact on their customers, MGM Resorts has taken the proactive step of reaching out to affected individuals. The company is offering free identity protection and credit monitoring services to mitigate the consequences of the breach. Customers with concerns or questions are encouraged to visit MGM’s website or call 800-621-9437, referencing engagement number B105892.

A Grateful and Apologetic Closure

Hornbuckle concluded his letter with a heartfelt note of gratitude towards the employees for their dedication and resilience during this challenging time. He also expressed gratitude towards the customers for their loyalty and patience throughout the ordeal. The CEO extended a sincere apology to those impacted, reiterating the paramount importance of trust to MGM Resorts.

The History of MGM Resorts

Understanding the significance of this cyberattack requires a brief exploration of the rich history of MGM Resorts.

MGM Resorts has a storied legacy that dates back to 1986 when it was founded as MGM Grand, Inc. Since then, the company has evolved into one of the most prominent names in the hospitality and entertainment industry. With a portfolio that includes iconic properties such as the Bellagio, Mandalay Bay, and the MGM Grand, MGM Resorts has been a pillar of the Las Vegas Strip.

The company’s history is marked by a commitment to luxury, entertainment, and customer satisfaction. It has played a pivotal role in shaping the landscape of Las Vegas and has expanded its presence globally. From hosting world-class entertainment events to offering unparalleled hospitality experiences, MGM Resorts has been a symbol of opulence and extravagance.

Final Thoughts on MGM´s $100 Million Loss

The cyberattack on MGM Resorts has not only resulted in substantial financial losses but has also raised concerns about customer data security. However, the company is taking rigorous measures to mitigate the impact on its customers and recover from this setback. Despite the adversity, MGM Resorts remains confident in its ability to bounce back, with the hope of a prosperous fourth quarter, driven in part by the Las Vegas Grand Prix in November. Understanding this incident in the context of MGM Resorts’ illustrious history adds depth to the significance of the challenges they face in the wake of this cyberattack.

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