An analyst at Jefferies Group says that MGM Resorts could be losing between $4.2 million and $8.4 million per day in revenue, alongside $1 million in cash flow every day as a result of the recent cyberattacks on the group’s casino and hospitality operations in the United States.
According to reports, the analyst believes that MGM could see between 10 and 20 percent of revenue and cashflow affected if the current conditions continue.
MGM is now in its second week of affected operations, with reservations for its Las Vegas property website ‘currently unavailable’. The group is offering cancellations or changes without charge, a condition that was initially expected to end on Sunday.
Punters continued to have issues cashing out their winnings, as computer systems remain down following the massive cyberattack claimed by hacker group BlackCat.
The Jefferies analyst says that damages from the cyberattack could be claimed against insurance, but the coverage amount is unclear.
David Katz notes that the gaming operator has confirmed that the cyberattacks should be taken as one-time, largely insurable events that should not have long-lasting impacts on the businesses, assuming that the event is short-lived’.
Fellow Las Vegas gaming operator Caesars Entertainment also recently suffered a cyberattack, reportedly paying out some $15 million to hackers in order to regain control of its systems. Katz compared the two situations by noting that ‘MGM’s impact could potentially be material but moderate near term, while CZR should see no meaningful impact and the question of whether any business is displaced among operators near term is fair’.
It’s unsure whether MGM opted to pay any ransom fee.
