MGM Resorts CEO Says Recent Cyberattack Now Completely Resolved

Article by : Erik Gibbs Oct 13, 2023

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In a comprehensive interview with CNBC’s Contessa Brewer at the Global Gaming Expo in Las Vegas, the leading trade show in the gaming industry hosted at The Venetian, Bill Hornbuckle revealed that MGM successfully repelled the hackers.

The head of MGM, operator of the Bellagio and Nevada’s largest employer, reassured that the company is resuming its regular daily operations.

Hornbuckle assured CNBC viewers that the cyberattack is now in the past, emphasizing that it was an intense three-week period.

MGM’s head hoped it was an isolated incident and affirmed that the company was progressing. While acknowledging the significant impact the incident had in September, he acknowledged that some effects would linger into October.

Hornbuckle stated that MGM’s casinos in Las Vegas and regional properties across the country have quickly recovered.

Hornbuckle mentioned that its venues were fully booked last weekend on the Las Vegas Strip, where MGM runs more casinos than any other company. The company expects October occupancy to exceed 90%.

Brewer spoke with Hornbuckle at the Global Gaming Expo hosted by the American Gaming Association.

Cybersecurity is a theme this year following recent cyberattacks on the two most prominent Las Vegas gaming operators, MGM and Caesars Entertainment.

The business journalist inquired about what the company is doing to prevent a similar attack in the future.

Hornbuckle stated that there is work to be done regarding reorganizing and rebuilding. Nonetheless, he expressed strong confidence in the current state of security.

In a recent SEC filing, MGM revealed that the cyberattack is anticipated to result in approximately $100 million in lost revenue. The casino giant’s cyber insurance policy will likely cover this loss.

The filing also indicated that the company incurred around $10 million in expenses related to the cyberattack. Unlike Caesars, MGM chose not to pay a ransom to the cybercriminals, reportedly $15 million.

The MGM cyberattack caused significant disruptions across the resort. Many slot machines were disabled, voucher printing went offline, online room reservations were held, and digital room keys became inaccessible.

When asked whether a continued financial decline might be expected, as potential MGM guests opt for alternative accommodations due to privacy concerns, Hornbuckle asserted that the MGM brand remains strong.

Hornbuckle also pointed out that Las Vegas and MGM have endured various challenges over the past decade, including the mass shooting on October 1, 2017, and the COVID-19 pandemic.

Regarding the situations with their service employees, Hornbuckle emphasized that they last witnessed a citywide strike nearly four decades ago. He expressed his belief that it’s in the best interest of all parties, including employees, stakeholders and the company itself, to keep progressing.

However, the MGM head acknowledged that it’s a critical juncture, and he is hopeful that common sense will ultimately guide the way.