In a series of events that unfolded in recent weeks, two major casino and hotel giants, Caesars (NASDAQ:CZR) Entertainment and MGM Resorts (NYSE:MGM) International, faced significant cybersecurity breaches. The Scattered Spider hacker group is allegedly responsible for both incidents.
On Wednesday, MGM Resorts International disclosed a cybersecurity issue affecting some of its systems. The company has initiated an investigation with the help of external cybersecurity experts and has also notified law enforcement. While the company is taking steps to secure its systems and data, the investigation is ongoing. The cyberattack on MGM may have involved Scattered Spider and another unidentified hacker group.
Earlier this month, Caesars Entertainment fell victim to a ransomware attack by the same group. The Nevada-based company experienced a breach to its network that exposed some of its data to hackers. This attack was reportedly preceded by one of Caesars' third-party IT vendors getting compromised.
During the incident, the alleged hackers received a payment worth tens of millions of dollars from Caesars Entertainment, approximately half of the initial $30 million ransomware demand. The company is expected to detail this in a regulatory filing to the U.S. Securities and Exchange Commission soon.
Caesars Entertainment, which operates multiple properties including Caesars Palace, Harray's, Eldorado and Tropicana in Las Vegas, has seen a total revenue of $5.7 billion over the first two quarters of the year, with a net income of $784 million across these two quarters.
The stock value of both companies has been affected following these incidents. Shares of MGM Resorts International saw a dip from their initial value on Wednesday morning, while the value of Caesars Entertainment's stock was 2.7% lower.
Cybersecurity experts warn that these incidents could potentially make the sector even more vulnerable to future attacks. John J. Rice, IT and security manager at NYSERNet, commented on LinkedIn, "This won't be the last Vegas casino operator targeted."
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