Shares of Caesars Entertainment Inc. slumped on Wednesday following reports of a cyberattack that targeted the casino operator last month. Meanwhile, MGM Resorts International properties are still grappling with their own "cybersecurity issue" reported on Sunday.
Caesars Entertainment Incident
It was revealed that Caesars Entertainment fell victim to a cyberattack in late August, with the hacking group known as Scattered Spider claiming responsibility. The hackers allegedly infiltrated Caesars' computer system and threatened to release data unless a ransom was paid. According to Bloomberg News, Caesars paid around half of the $30 million ransom demanded.
An external IT vendor was first breached, providing access to Caesars' system. The company has yet to comment on these reports but is expected to disclose further details in a filing with the Securities and Exchange Commission.
MGM Resorts Cybersecurity Issue
As for MGM Resorts International, they reported a "cybersecurity issue" that forced the temporary shutdown of various systems, including credit card transactions, digital hotel room keys, slot machines, and sports-betting kiosks. The company filed a statement with the SEC acknowledging the incident and highlighting the material risk it poses. MGM Resorts stated that their investigation is ongoing, and efforts are being made to resolve the matter.
Shares of Caesars Entertainment dropped 2.7% on Wednesday, while MGM Resorts saw a 1.2% decline. However, Caesars' shares did recover slightly during after-hours trading.
Follow our updates to stay informed about the latest developments on these cyberattacks and their impact on the affected companies.