MGM Casinos Shut Down, Who Owns MGM Casino?
by Mathelene
Updated Sep 12, 2023
MGM Casinos Shut Down
MGM Resorts International, a big casino and hotel company, had to stop its operations because of a "cybersecurity issue." This problem affected their online systems and caused trouble for customers, mainly in Las Vegas. Cybersecurity experts think it might be a cyberattack. MGM Resorts didn't say exactly what went wrong or when it started, but they told the police about it. They took quick action to protect their systems and shut down some of them.
They're still trying to figure out what happened. Despite these problems, MGM Resorts said they're still offering dining, entertainment, and gaming options, and guests can still get into their hotel rooms with help from the front desk.
It is unknown how many people were affected by this cybersecurity problem. Cyberattacks like these are often done by hackers who want to make money by stealing data or asking for a ransom. Big companies like MGM are attractive targets for these attacks. This incident reminds us that cyberattacks are a serious threat to various industries, including casinos, and recovering from them can take a long time.
Who Owns MGM Casino?
In the United States, the properties of MGM Resorts International, which include the casinos, are not owned by MGM Resorts directly. Instead, they are fully owned by a company called Vici Properties. MGM Resorts operates these properties through a special long-term agreement known as a triple net lease.
Under this arrangement, Vici Properties owns the actual buildings and land where the casinos and other MGM properties are located. MGM Resorts, on the other hand, manages and runs these properties. This means that while Vici Properties owns the physical assets, MGM Resorts is responsible for all the day-to-day operations, such as running the casinos, hotels, and other amenities.
This setup is a bit different from the traditional ownership model, where a company owns both the property and operates it. In the case of MGM Casinos, Vici Properties owns the real estate, while MGM Resorts takes care of everything else. It's an interesting business arrangement that allows both companies to focus on what they do best.
MGM Casino Cyber Attack
MGM Casinos in the United States had to shut down some of their operations because of a cyberattack on their computer systems. This attack made the resort chain vulnerable, so they decided to close down all their computer systems until they can fix the issue. MGM Resorts International is working with cybersecurity experts to figure out what happened and has also told the police about it.
The full extent of the attack is still not clear, but it's causing problems for guests. Things like ATMs, slot machines, restaurants, and even getting into hotel rooms using digital keys have been affected. All MGM Grand Hotels & Casinos, including famous ones in Las Vegas and New York, have been impacted.
You can still book a room, but you can't do it online. You have to call to make a reservation or get in touch with the hotel directly for help. It's uncertain how long this shutdown will last, and investigations are ongoing with the FBI involved. This isn't the first time MGM has faced a cyberattack; a similar incident happened in 2019 when hackers stole guest information.
MGM Resorts International
MGM Resorts International is a big American company that runs vacation resorts in several states, like Las Vegas, Massachusetts, Michigan, Mississippi, Maryland, Ohio, and New Jersey. Some of its famous resorts include Bellagio, Mandalay Bay, MGM Grand, and Park MGM.
This company started in 1987 as MGM Grand, Inc. and later became MGM Mirage in 2000 when it bought Mirage Resorts. In the mid-2000s, they noticed that they were making more money from things like hotels, restaurants, and shops than from gambling. People were also really interested in buying fancy condos in Las Vegas.
So, MGM changed its focus. Instead of just owning and running resorts and casinos, they started building real estate for leisure and gaming. They took on a huge project called CityCenter, which was one of the most expensive real estate projects ever. But this project ran into problems because of the global financial crisis, which caused it to lose a lot of its value.
A billionaire named Kirk Kerkorian and his company used to own most of MGM Mirage. However, due to financial issues, they had to sell some of their shares. In 2010, the company changed its name to MGM Resorts International. In 2015, MGM split into two companies: one that deals with real estate (MGM Growth Properties) and another that manages the properties (MGM Resorts).
Vici Properties
Vici Properties Inc. is a real estate investment company based in New York City. It was created in 2017 when it separated from Caesars Entertainment Corporation during a bankruptcy reorganization. Vici Properties is a unique type of business called a real estate investment trust (REIT), and it specializes in owning properties that are related to casinos.
What makes Vici Properties interesting is that it owns a total of 49 places, which include casinos, hotels, racetracks, and even 4 golf courses. These properties are located in various parts of the United States and Canada. Essentially, Vici Properties doesn't run the casinos or manage the hotels; instead, it owns the actual buildings and land where these businesses operate.
This way, it can make money by leasing these properties to companies like Caesars Entertainment, which run the casinos and hotels. It's a way for investors to invest in real estate connected to the exciting world of casinos and gaming without actually running those businesses themselves.
MGM Casinos Shut Down - FAQs
MGM Resorts International experienced a cybersecurity issue that affected their online systems, which led to operational disruptions.
The issue caused trouble for customers, particularly in Las Vegas. It resulted in various disruptions, including problems with ATMs, slot machines, restaurants, and issues accessing hotel rooms using digital keys.
Yes, MGM Resorts International took prompt action to protect their systems and data, which included shutting down certain systems.
Yes, MGM Resorts is actively investigating the matter to determine its nature and scope. They are working diligently to resolve the issue with the help of external cybersecurity experts.
The duration of the system shutdown will depend on the extent of the cyberattack, and it is uncertain when the systems will be fully restored.