News > Cyber-Attacks > Ransomware
by Kevin Wood

MGM Faces Unprecedented Losses After Catastrophic Ransomware Attack: Will Other Casinos Be Next?

Ransomware attacks are costly

In a shocking revelation, the infamous MGM cyberattack is now believed to be the most expensive ransomware attack in recorded history. The high-stakes world of Las Vegas is no stranger to losses, but this event may have set a precedent that should have every casino on high alert.

Brett Callow, a renowned threat analyst from Emsisoft, unveiled this alarming analysis to the Review-Journal, emphasizing the staggering financial blow MGM Resorts International endured over a nine-day period in September. MGM’s estimated losses, as disclosed in a recent SEC filing, stand at an eye-watering $100 million. This amount eclipses the previous record set by the attack on Norsk Hydro in June 2022, which resulted in a loss of $71 million.

While it remains a mystery whether MGM gave in to the hackers’ ransom demands, the fallout from the attack is palpable. Their computer systems came to a screeching halt, impacting everything from the MGM app that guests use to access their rooms, to the slot-machine payouts, and even internal email communication. Although MGM claims their systems are back online, the long-term consequences of such an attack are yet to be fully realized.

Callow warned, “For MGM, the repercussions are profound. Recovery could be a long, uphill battle, ransom paid or not. However, in Caesars’ case, the damage seemed less severe, allowing a quicker recovery.”

The recent attacks on MGM and Caesars Entertainment Inc., which reportedly paid a hefty ransom in August, serve as a chilling reminder for other casino businesses. Callow cautioned, “Every organization with the means to pay is a target. Vegas casinos should be wary of their systems’ vulnerabilities.”

Highlighting the evolving nature of cyber threats, Callow added, “The future will see an increase in social engineering tactics. While companies train employees against threats like phishing emails, they often overlook threats via phone calls.”

Amidst this bleak backdrop, Balance Business Group (BBG) offers a glimmer of hope. As a leading disaster recovery company, BBG specializes in helping companies bounce back from such devastating cyberattacks, ensuring minimal downtime and financial loss. Their comprehensive solutions can be a game-changer in situations like MGM’s, making them a beacon of hope for businesses in distress.

Brendan Bussmann, a seasoned gaming industry analyst, commented on the attack’s ramifications, “MGM’s disclosure offers a clear picture of the breach’s monetary impact. The $100 million loss, coupled with the $10 million in immediate remedial costs, gives Wall Street an inkling of the company’s current financial predicament.”

MGM’s forthcoming busy season, including major events like the Las Vegas Grand Prix race and Super Bowl LVIII, adds pressure to the company to rebuild trust with their clientele. The breach potentially exposed customer data, a concern for many. However, MGM assures that its latest acquisition, The Cosmopolitan of Las Vegas, remains unaffected.

Analyst Carlo Santarelli notes that MGM’s stock price plummeted by nearly 19% post the cyberattack news. Though MGM shares recovered slightly, closing up by 4.9%, the road to recovery remains uncertain.

This incident serves as a stark reminder of the vulnerabilities companies face in the digital age. It underscores the importance of being prepared, vigilant, and having a reliable partner like BBG to navigate the aftermath of such unforeseen disasters.