The Federal Trade Commission (FTC) and MGM Resorts International are nearing a resolution over the contentious investigation into an extensive cyberattack that rocked the casino giant in September 2023. This cybersecurity breach inflicted nearly $100 million in damages and left MGM’s resort operations in disarray for over a week. Initially, the FTC issued a civil investigative demand (CID) in January 2024, seeking comprehensive details about the incident. However, MGM retaliated in April by initiating legal proceedings against the agency, arguing that the demand was excessively burdensome and unreasonable.
According to sources, the FTC has now opted to drop its CID, reported The Las Vegas Review-Journal. MGM has expressed relief at this decision, labeling the CID as an unwarranted effort to penalize the company for refusing to capitulate to cybercriminals’ demands. MGM had initially sought an extension to comply with the FTC’s inquiries but was denied, prompting the legal confrontation. The cyberattack had severely disrupted MGM’s operations, disabling slot machines, malfunctioning digital room keys, and causing breakdowns in payment systems. Guests faced significant inconveniences as staff resorted to manual credit card processing, and ATMs within the hotels went offline, exacerbating the chaotic situation.
According to sources, the FTC has now opted to drop its CID, reported The Las Vegas Review-Journal. MGM has expressed relief at this decision, labeling the CID as an unwarranted effort to penalize the company for refusing to capitulate to cybercriminals’ demands. MGM had initially sought an extension to comply with the FTC’s inquiries but was denied, prompting the legal confrontation. The cyberattack had severely disrupted MGM’s operations, disabling slot machines, malfunctioning digital room keys, and causing breakdowns in payment systems. Guests faced significant inconveniences as staff resorted to manual credit card processing, and ATMs within the hotels went offline, exacerbating the chaotic situation.
The FTC had justified its investigation by emphasizing the need to protect customers affected by the attack, especially considering a similar breach targeting MGM in 2019. According to the agency, MGM’s financial practices, including offering interest-free credit to high-stakes gamblers, warranted regulatory scrutiny. However, MGM contended that the FTC’s approach was overly aggressive. The company sued the agency, claiming that its Fifth Amendment rights to due process were violated. MGM also called for FTC Chair Lina Khan to recuse herself, citing a potential conflict of interest since she was staying at an MGM hotel
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