A cyber-hack at MGM Resorts International (NSX:MGM) is estimated to be carving out up to 20% of daily revenue for the casinos and hotels giant.
Tuesday will be the ninth day of the “cybersecurity issues” the company has grudgingly acknowledged.
MGM, larger rival Caesars Entertainment and three other peers have seen company computer systems shut down and electronic machines on their casino gaming floors at a standstill, according to reports.
— MGM Resorts (@MGMResortsIntl) September 14, 2023
Analysts at Jefferies said the issues could be costing the company between 10% and 20% of cash flow and revenue, with the group taking around US$42 million in daily revenue and US$8 million cash usually.
Hacker group ALPHV has publicly claimed responsibility for the MGM hack and has threatened further attacks, working with fellow group Scattered Spider on the attacks, according to David Bradbury, chief security officer at identity management company Okta told Reuters, having noticed these breaches and issued an alert last month.
There has been an increase in such attacks over the past year, with hackers impersonating company employees to gain access.