Nevada’s Big Casinos Face Massive Lawsuits Following Cyber-Attacks


MGM Resorts International and Caesars Entertainment, two of the most prominent gambling companies in Nevada, are now contending with five major lawsuits in the wake of this month’s severe cyber-attacks. The plaintiffs claim that MGM and Caesars failed to uphold their responsibility of protecting the sensitive data of their customers.

These lawsuits, freshly filed in the Nevada District Court, represent the legal backlash from an incident that shook the typically glitzy world of Las Vegas casinos, revealing a more sinister side of cybercrime. According to the allegations, the companies demonstrated negligence by not implementing adequate cyber-security procedures and failing to promptly notify their customers of the compromise of their data.

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The four lawsuits lobbying for class-action status were filed on behalf of the companies’ rewards club members by Tony Owens and Emily Kirwan against MGM, and Paul Garcia and Alexis Giuffre against Caesars. The legal action was escalated with a fifth lawsuit against Caesars, filed separately by plaintiffs Thomas and Laura McNicholas.

All five lawsuits frame their arguments on charges of negligence, breach of contract, and unjust enrichment, seeking monetary compensation for damages – actual, statutory, and punitive – and restitution. Demands for jury trials have been attached to each suit.

Critical to the lawsuits is the contention that MGM and Caesars were fully aware of the importance of securing sensitive customer information. It is argued that their laxity in cyber security measures equates to neglecting Federal Trade Commission guidelines and industry standards.

In her case against MGM, Emily Kirwan noted that the company was already forewarned about the potential for such attacks, yet failed to act. The subsequent exposure of their customer data has left victims in a permanently precarious position, necessitating lifelong vigilance over their financial accounts.

The victims of these cyber-attacks claim that hackers stole six terabytes of sensitive information, which they fear could already be in cybercriminal hands via the dark web. Such data could be used to yield fraudulent profits, by applying for loans and driver’s licenses, filing tax returns and placing false claims for unemployment benefits in their names.

This saga began on September 10, when MGM Resorts International experienced a cyber-attack that paralyzed systems across its 10 casino resorts for over a week. Caesars, running nine such resorts, faced a similar plight, as they detailed in a Securities and Exchange Commission filing days later. Reportedly, $15 million was hastily paid in ransom to reinstate their systems.

Although Caesars promised to recover and delete the compromised data, they couldn’t provide any guarantee. In sharp contrast, MGM is yet to offer any statement on the exposure of its customers’ data.

Speaking of casinos, here’s where you can explore safer and more secure methods of online gambling. After all, we at West Island Blog believe in an exciting gaming experience without compromising on your data privacy and security. Remember, the house should not be the only one winning!