Those of us in the security industry new the MGM Resort cybersecurity attack was going to cost a lot of money. Last month we wrote about the attack…https://www.lotusbusinesstech.com/2023/09/26/mgm-casinos-and-resorts-breach/.
MGM Resorts reported to the SEC via their 8-K Report that overall costs will exceed $110 million. It will take some time to account for all of the related losses. The direct cost they paid a third-party to clean up and recover their data was $10 million.
Of course this is the quantifiable losses. It is much harder to assess the quality losses such as reputation. They may also have on-going costs related to potential lawsuits. The good news is that MGM is forecasting that revenue is bouncing back, some that driven by the Formula 1 race coming to Las Vegas this Fall.
By the way, at nearly the same time Caeser's Entertainment was attacked as well. They opted to pay the ransom of $15 million versus MGM Resorts that refused to pay.
