MGM to lose up to $8.4 million each day as it resolves cyberattack
MGM could lose between 10% and 20% in revenue and cash flow due to the attack, analysts estimated
MGM & Caesars targeted by cyberattack
SentinelOne Chief Security Advisor Morgan Wright says there is a 'high likelihood' hackers will attack again on 'Making Money.'
MGM Resorts International is projected to lose up to $8.4 million in revenue every day until it fixes cybersecurity issues that affected its reservation system and casino floors in multiple states.
According to a research note from Jefferies gaming industry analyst David Katz, the company, which fell victim to a cyberattack last week, is projected to face a near-term loss between 10% and 20% in revenue and cash flow "for the days that the current conditions exist."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGM | MGM RESORTS INTERNATIONAL | 37.80 | -0.20 | -0.54% |
According to Jefferies analysts, MGM generates about $42 million in daily revenue and $8 million in daily cash flow across the entire company.
CAESARS CONFIRMS HACKER STOLE SOCIAL SECURITY NUMBERS, OTHER DATA IN CYBERATTACK
It's been a week since MGM announced it was targeted by a hacker which affected the company's systems earlier.
"Promptly after detecting the issue, we began an investigation with assistance from leading external cybersecurity experts," MGM said in a statement last week. "We also notified law enforcement and are taking steps to protect our systems and data, including shutting down certain systems."
The Park MGM hotel and casino in Las Vegas July 28, 2023. (Bridget Bennett/Bloomberg via Getty Images / Getty Images)
The incident affected reservations and casino floors in multiple states, including Nevada, according to The Associated Press.
The company posted on X, formerly known as Twitter, that the investigation is still ongoing, although it is working "diligently" to solve the cyber issue while addressing "individual guest needs promptly."
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Caesars Entertainment confirmed Thursday that a hacker infiltrated its computer system and stole customer data in a recent cyber attack.
In a regulatory filing, Caesars Entertainment confirmed that it incurred, and may continue to incur, certain expenses related to this attack.
The company reportedly paid tens of millions of dollars to keep the hackers from releasing the company's data, sources familiar with the matter told Bloomberg.