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Shares of Caesars Entertainment Inc.
CZR,
slumped Wednesday following reports that the casino operator paid millions of dollars in ransom after it was hit by a cyberattack last month.
The disclosure came as MGM Resorts International
MGM,
properties continued to deal with a “cybersecurity issue” that was first reported Sunday, forcing many of its systems — including credit card transactions, digital hotel room keys, slot machines and sports-betting kiosks — to be shut down.
Bloomberg News first reported Wednesday that the hacking group known as Scattered Spider was responsible for late-August cyberattack, in which hackers apparently broke into Caesars’ computer system and threatened to release data unless paid ransom.
The Wall Street Journal reported that Caesars paid roughly half of the $30 million that the hackers demanded. The company is expected to report the incident in a filing with the Securities and Exchange Commission this week, the reports said.
An outside IT vendor was breached first, according to the reports, and used to access Caesars’ system. Caesars did not comment on the reports.
MGM Resorts filed an 8-K with the SEC on Tuesday, indicating that the cyberattack poses a material risk to the company. “Our investigation is ongoing, and we are working diligently to resolve the matter,” the company said in a statement Tuesday.
On Wednesday, Moody’s said the MGM cyberattack could negatively affect its credit rating.
Caesars shares fell 2.7% on Wednesday, but recovered somewhat in after-hours trading. MGM Resorts shares slipped 1.2%.
