{"id":290608,"date":"2023-09-20T14:32:03","date_gmt":"2023-09-20T19:32:03","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=290608"},"modified":"2023-09-21T13:50:43","modified_gmt":"2023-09-21T18:50:43","slug":"mgm-might-have-200m-cyber-insurance-policy-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/","title":{"rendered":"MGM Has $200M Cyber Insurance Policy, Stock Can Recover, Says Analyst"},"content":{"rendered":"

MGM Resorts International (NYSE: MGM) announced Wednesday that operations at its U.S. casino hotels are back to normal. That’s following a ransomware attack that commenced on September 10, and at least one sell-side analyst says the company\u2019s financial exposure to the event is minimal.<\/p>\n

\"casino
MGM Grand Las Vegas. The operator may have a $200 million cyber insurance policy, says an analyst. (Image: Luxury Lifestyle Magazine<\/em>)<\/figcaption><\/figure>\n

In a recent note to clients, JMP Securities analyst Jordan Bender said the research firm believes MGM has a $200 million cyber insurance policy that covers business interruptions and payments to bad actors. If that’s accurate, the Bellagio operator isn\u2019t likely to incur significant costs attributable to the data breach.<\/p>\n

If the breach is fully covered within the policy, MGM will incur minimal costs along the way, and see insurance premiums go up.<\/strong> But it would amount to a drop in the bucket for a company generating $4.7 billion of [cash flow] this year,\u201d wrote Bender.<\/p><\/blockquote>\n

That jibes with recent comments from MGM rival Caesars Entertainment (NASDAQ: CZR). The Harrah\u2019s operator was the victim of a ransomware attack by \u201cScattered Spider,\u201d or UNC 3944, and reportedly paid $15 million to $30 million to halt the attack. In a Form 8-K filing with the Securities and Exchange Commission (SEC) last week, Caesars signaled that the payment<\/a> was covered by a cyber insurance policy.<\/p>\n

MGM Could Bear Short-Term Costs<\/h2>\n

By some estimates, MGM may have lost as much as $84 million<\/a> in revenue due to an ongoing data breach that started on September 10.<\/p>\n

\n

That doesn\u2019t include an estimated $1 million per day in lost cash flow and potential reputational damage. In his report, Bender noted that JMP forecast that a cyber ransom paid by MGM could run anywhere from $30 million to $50 million. It\u2019s likely that would be covered by insurance.<\/p>\n<\/div>\n

The Cosmopolitan operator has yet to publicly use the term \u201cransomware.\u201d But if a payment is made to the perpetrators, MGM is required by the SEC<\/a> to disclose that expenditure to investors, and that disclosure must arrive within four business days. For now, MGM\u2019s priority is ensuring operations return to normal, though there are likely to be some hiccups along the way.<\/p>\n

\u201cWe do not know the time line of when operations will return to normal. But our checks indicate MGM is still experiencing day-to-day issues that could persist for a period of time,\u201d added Bender.<\/p>\n

MGM Share Price Can Recover<\/h2>\n

The ransomware attack on MGM has a plethora of victims. Those include guests of the company\u2019s resorts and employees who reportedly had personal data stolen. That data includes lost access information such as paid time-off scheduling and retirement benefits. Add investors to that list.<\/p>\n

\n

Since the start of the cyber attack, shares of MGM slid 6%, shedding $850 million in market value along the way. Bender believes the stock will bounce back, and reiterated an \u201coutperform\u201d rating and $60 price target on the shares. That implies upside of more than 50% from current levels.<\/p>\n<\/div>\n

\u201cHistorical precedent has shown past hacks of credit cards and personal information within this space have not materially impacted long-term revenue, and in turn, companies saw a recovery in the stock price,\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International (NYSE: MGM) announced Wednesday that operations at its U.S. casino hotels are back to normal. That’s following a ransomware attack that commenced on September 10, and at least one sell-side analyst says the company\u2019s financial exposure to the event is minimal. In a recent note to clients, JMP Securities analyst Jordan Bender […]<\/p>\n","protected":false},"author":46,"featured_media":254335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,10,33810,81886,16693],"tags":[86118,81903,23,82041],"acf":[],"yoast_head":"\nMGM Might Have $200M Cyber Insurance Policy, Says Analyst<\/title>\n<meta name=\"description\" content=\"MGM financial impact of data breach could be minimal due to $200M cyber insurance plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Might Have $200M Cyber Insurance Policy, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"MGM financial impact of data breach could be minimal due to $200M cyber insurance plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-20T19:32:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-21T18:50:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/MGMG-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1368\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/\",\"name\":\"MGM Might Have $200M Cyber Insurance Policy, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/MGMG-1.jpg\",\"datePublished\":\"2023-09-20T19:32:03+00:00\",\"dateModified\":\"2023-09-21T18:50:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM financial impact of data breach could be minimal due to $200M cyber insurance plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-might-have-200m-cyber-insurance-policy-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/MGMG-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/MGMG-1.jpg\",\"width\":1368,\"height\":628,\"caption\":\"MGM Grand Las Vegas. 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