Federal Trade Commission withdrawing request for MGM cyberattack information Casinos Gaming Business

pIn a letter to MGM legal representatives the Federal Trade Commission said it is withdrawing its civil investigative demand made to MGM Resorts in January 2024ppThe Federal Trade Commissions dispute with MGM Resorts International over providing information about 2023s costly cyberattack against the company may be coming to a resolutionppThe FTC has told MGM it plans to withdraw its civil investigative demand regarding the incident that cost the company an estimated 100 million and crippled the companys resort operations for nine days in September 2023ppIn a twoparagraph letter Tuesday from FTC Chairman Andrew Ferguson to Brian Boyle a member of MGMs Washingtonbased legal team the federal agency said it is withdrawing its demand known as a CIDppA copy of the letter was provided to the ReviewJournal by MGMppThe CID issued Jan 25 2024 spurred a lawsuit by MGM against the FTC in AprilppThe CID issued by the former chair of the FTC was a dangerous overreach that sought to punish MGM Resorts for refusing to pay cybercriminals MGM said in a statement Friday Were pleased that the new chair has withdrawn itppBoyle asked the court for a March 21 status report to determine whether the case is mootppIts unclear why the FTC reversed course on the CIDppCyberattack damageppDuring the cyberattack hundreds of slot machines were inoperative guests could not access their rooms with smartphones and creditcard payment systems were disrupted leading to the manual processing of creditcard transactions Onsite ATMs and the companys phone system also were inoperativeppWhen the FTC issued its CID in January 2024 it sought information in 100 different categories of information spanning multiple years MGM believed much of the information sought was irrelevant to the cyberattack The company wrote a letter unsuccessfully seeking a deadline extension When the FTC refused the deadline extension both sides took to the courtsppIn April MGM filed a fourcount lawsuit in US District Court for the District of Columbia against the FTC and thenChair Lina Khan who with an aide was checking in to the MGM Grand while attending a conference at the height of the cyberattackppThe lawsuit sought an injunction to block the CID and claimed the FTC violated MGMs Fifth Amendment rights to due process adding that Khan should have been disqualified for conflict of interest as a hotel guestppMGM alleged the FTC failed to follow its own conflictofinterest guidelinesppThe lawsuit also sought a reasonable deadline to file the CID if the FTC was allowed to continue its investigationppFTC lawsuitppThe FTC in June countered with its own lawsuit against MGM in US District Court in Nevada In it the FTC asked the court to compel MGM to respond to the investigation saying the government agency represented consumers affected by the cyberattack in 2023 and an earlier attack in February 2019ppThe FTC also said it considers the casino to be a financial institution subject to lending rules because it allows highrollers to gamble with markersppMarkers are nointerest loans that gamblers are expected to pay back to the casino within 30 days and are used as a convenient incentive to highrollers to play at a specific casinoppWhile gambling with markers represents a small percentage of casino play gaming companies say its the equivalent of a gambler playing on a tab and not on creditppIn response to the FTC lawsuit MGM said it cooperated fully with federal investigators who urged the company not to pay a ransom sought by criminals who attacked MGMs systemsppIn July British law enforcement authorities working with the FBI arrested a teenage boy in connection with the attack The unidentified teen was released on bond after being apprehended by the Regional Organised Crime Unit for the West Midlands in Wallsal a small city in central EnglandppLaw enforcement authorities believe the cyberattack was organized by Scattered Spider a multinational crime group responsible for a number of ransomware attacks on companies worldwideppMGM says the publicity of Khans experience triggered 15 consumer class action lawsuits against MGMppTwo of those class actions were settled in January and are expected to be formally approved by the court in June with MGM agreeing to pay 45 millionppUnder terms of what is called a global settlement class members whose Social Security numbers or military identification numbers were exposed are eligible for a 75 cash payment while those whose passport number or drivers license were exposed are eligible for 50 In addition all settlement class members may get identity theft protection and credit monitoringppContact Richard N Velotta at rvelottareviewjournalcom or 7024773893 Follow RickVelotta on XppThe staff was notified of the executives retirement on Thursday No replacement has been namedppThe longtime executive who became chairman and CEO of Las Vegas Sands Corp in 2021 will be taking on a new role for the company next yearppThe new concept replaces Bazaar Meat by chef José Andrés which is moving from Sahara Las Vegas to The Venetian on the StripppClark County District Court Judge Joanna Kishner said Light Wonder breached a distribution agreement it had with The Talisman Group the owners of EZ BaccaratppAn offStrip casino operating under a new management structure has brought on a new executiveppComing on the heels of its worst financial quarter in nearly two years Resorts World Las Vegas improved its performance to close out 2024 but still fell short of the previous years returnsppThe estate of Tony Hsieh provided an update on the property and its potential sale before the Las Vegas City CouncilppThe family of a woman who died of Legionnaires disease after bacteria was found at her apartment and at the casino she visited has filed a lawsuit in Clark CountyppThe win was one of several recently in the Las Vegas areappMegabucks is unique because of its huge jackpot potential low hit frequency and annuity payout optionpp
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