In a startling turn of events, MGM Resorts, a renowned casino and lodging operator, has been compelled to shut down several of its computer systems, including its website, due to an alarming “cybersecurity issue.” The company made this revelation in a social media post that sent shockwaves throughout the industry.
This initial shutdown has had a far-reaching impact on virtually every facet of MGM Resorts’ operations. From reservation systems and booking platforms to hotel electronic key card systems and even the bustling casino floors, the disruption was palpable. Furthermore, the company’s email systems were not spared and remain offline in response to the ongoing cybersecurity concern.
As of Monday evening, MGM Resorts reported that its casino floors were back online, providing a glimmer of relief. However, the critical reservation systems that manage thousands of hotel rooms and the booking system responsible for restaurant reservations are still grappling with the aftermath, more than a day after the initial incident.
MGM Resorts boasts an extensive network of hotel rooms across Las Vegas and the United States. Notably, revenue generated from its hotel rooms in Las Vegas surpasses that directly attributed to its casino operations, as per SEC filings. The company’s financial records indicate Las Vegas rooms revenue of $706.7 million for the quarter ending June 30, compared to $492.2 million in casino revenue for the same period.
In response to the incident, MGM Resorts swiftly initiated an investigation, enlisting the support of leading external cybersecurity experts. The company promptly notified law enforcement agencies and took decisive measures to safeguard its systems and data, which included shutting down certain systems. While the FBI acknowledged awareness of the “ongoing” incident, specific details were not disclosed.
The repercussions of this cybersecurity setback were evident in MGM Resorts’ stock performance, as shares closed down nearly 2.4% on Monday.
Visitors attempting to access MGM Resorts’ website are now greeted by a landing page, advising them to contact hotels or casinos directly via phone. The precise commencement time of the outage remains unclear, although reports on social media suggest that MGM’s systems were down as early as Sunday night.
This incident is not the first time MGM Resorts has grappled with cybersecurity issues. In 2020, personal details of over 10 million MGM visitors were exposed on a hacking forum. The breach occurred in the summer of 2019, as confirmed by the company at that time.
The extent of government involvement beyond the FBI’s participation remains uncertain. The government has identified the “commercial facilities sector,” encompassing gaming and lodging, as critical infrastructure since 2003. Recognizing the potential repercussions, the Department of Homeland Security cautioned in a 2015 sector-specific plan that “a large communications failure or intentional cyberattack could substantially disrupt payments and basic operations, compromise customer and company data privacy, threaten company integrity and reputation, and create large legal and economic burdens.” The ongoing situation underscores the significance of robust cybersecurity measures in today’s interconnected world.
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