LAS VEGAS (KTNV) — During a recent earnings call, MGM Resorts International CEO and President Bill Hornbuckle addressed a recent cyberattack on multiple Strip properties, the upcoming F1 Las Vegas Grand Prix, and the A's coming to Las Vegas.
In early September, MGM officials disclosed a cyberattack that impacted the company's properties on the Las Vegas Strip. Officials would speculate that the company lost over $100 million due to the hack. Customers would also see sensitive personal information stolen after a hacker group behind the attack was able to access information on the company's popular rewards loyalty club members.
Bill Hornbuckle, CEO and President of MGM Resorts International gave investors more details about the hack and how the company responded. "As a precautionary measure, we proactively shut down certain systems to mitigate risk to customer information, which resulted in disruption at some of our properties. Over the following weeks, we systematically restored to enhance these systems, and we're fully operational by the end of the month of September."
The issue would see multiple gaming machines down or showing error signs, and any jackpot winners would receive payouts by hand from employees.
MGM would return to normal operations in parts — with the website and the app coming back online on Sept. 19, and hotel reservations returning on Sept. 22.
"We do not anticipate any further operational disruptions from the incident," Hornbuckle told investors. "As expected, that insurance will cover the losses incurred. We expect to receive insurance reimbursements in the upcoming quarters."
During the call, Hornbuckle also noted that insurance for cyber and regular security has been steadily increasing since 2019. He told investors, "It's something we look at closely."
The Las Vegas Grand Prix was also discussed during the call, with a focus on how MGM properties will prepare to receive guests amid all the excitement.
"We are well prepared to welcome our guests for what promises to be an exciting and enduring tent-pole event," he said. "We sold out our Bellagio Fountain Club and Grandstand seats. Casino front money deposits indicate Formula One will be an all-time record casino event."
He added, "We sold over 10,000 tickets to F1. We've sold out a really cool experience with the Bellagio Fountain Club. I think something extremely unique anywhere in the whole sport, but particularly given its location."
Hornbuckle also discussed the A's relocation to the Las Vegas valley and told investors to expect MGM to invest heavily in their transition.
"I literally was with their team and their owner yesterday. They are excited to be coming," he said. "The vote is, I think, on Nov. 16 for the owners. And obviously, they have to get through that."
Team officials would also show Hornbuckle the newest renderings of the team's proposed stadium during their meeting, which he described to investors as "spectacular."
"I think you'll see us invest in the way people move around that corner and make it in concert and synergistic with the design I saw yesterday," he said.
Additionally, Hornbuckle says he has connected the hotel's architect with the team working on the stadium to help "this thing go up in the air."
He added, "I think over time, if Las Vegas continues to do the kinds of things it's been doing, we'd be foolish not to [invest]."
