A Wall Street analyst said the losses MGM Resorts International is experiencing from a cyberattack on the company’s hotel-casino operations in eight states could be covered by a $200 million cyber insurance policy covering ransom payments and business interruption.
MGM Resorts on Sept. 11 acknowledged the attack, which has disrupted its business operations companywide, including the gaming floors, hotel operations and other guest services. The company’s website was recently relaunched with a frequently asked questions button focused on the hack’s fallout.
The company has not acknowledged making any ransom payment to the hackers, who have not been identified by the company or law enforcement.
JMP Securities gaming analyst Jordan Bender wrote in a research note Tuesday that the firm’s insurance technology team calculated that a ransom could cost between $30 million and $50 million. Jefferies Gaming analyst David Katz estimated in a research note last week that MGM is losing 10 percent to 20 percent of its daily revenue.
Much of those losses are coming from disrupted gaming operations, lack of online hotel reservation capabilities and the loss of paid parking fees because computer systems are offline. MGM said on its website it is not charging customers hotel room cancellation fees.
