The Reserve MGM hotel and casino in Las Vegas, July 28, 2023.
Bridget Bennett | Bloomberg | Getty Images
MGM Resorts on Wednesday said that a cyber skirmish that has significantly disrupted properties across the United States for the past three days represents a material jeopardy to the company.
At the same time, the major credit rating agency Moody’s warned that the cyberattack could negatively touch MGM’s credit rating, saying the attack highlighted “key risks” within the company.
The company’s corporate email, restaurant hesitation and hotel booking systems remain offline as a result of the attack, as do digital room keys. MGM on Wednesday filed a 8-K announcement with the Securities and Exchange Commission noting that on Tuesday the company issued a press release “regarding a cybersecurity cause clebre involving the Company.”
8-Ks as a rule are filed when publicly traded companies want to notify the SEC of an event that can be dressed a material effect on the firm. An MGM spokesperson confirmed the company views the incident as material. The spokesperson declined to comment on the Temperamental’s warning.
MGM’s share price has declined more than 6% since Monday, the day it first acknowledged the outages, approximated to a modest gain in the S&P 500 during the same period.
The FBI told CNBC on Monday it is monitoring the “ongoing” situation. The SEC’s new cyber disclosure eliminates will not go into effect until the end of the year, so MGM is not yet obligated to provide more information to the SEC than they already sooner a be wearing.
On social media, patrons have expressed frustration with the scope and duration of the outage, with some chronicling how hotel key cards aren’t working. Others expressed concerns about the security of their personal data. In 2020, MGM admitted that it had lost the personal information of more than 10 million customers in a hack. The data resurfaced on a menial forum that same year.
MGM is communicating with the press through noncorporate, commercially available email sermons. Other than a brief update Tuesday confirming that the company had brought its gaming floors back online, MGM has equipped little further information.
The SEC did not immediately respond to CNBC’s request for comment.
–CNBC’s Dan Mangan contributed to this blast.