MGM Resorts CEO on overcoming a $100 million cyberattack and avoiding a labor strike before the Formula One Las Vegas Grand Prix
It's easy to think MGM Resorts is playing a game of financially troublesome whack-a-mole.
The company recovered from a massive cyberattack that sparked a $100 million loss only to then face a potential worker strike days before the biggest event to hit Sin City in decades: the Formula One Las Vegas Grand Prix.
But if anyone is sweating at MGM Resorts, it wasn't apparent on a third-quarter investor call this week.
"Following the issues, we have seen incredible resiliency in our business to start the fourth quarter," MGM Resorts CEO William Hornbuckle said on the call with investor analysts. "We're coming out of this stronger as a team and as a culture with a focus on the culture of yes from both our guests and employees."
Hornbuckle detailed the lengths the company went to protect its business during a recent cyberattack and data breach. The company adjusted certain systems to "mitigate risk to customer information" and then progressively restored those systems over the span of several weeks. MGM Resorts was finally back to being fully operational by the end of September, Hornbuckle said.
While that $100 million loss garnered headlines, the MGM Resorts CEO noted insurance will cover the losses incurred. But that's not the only operational headache impacting MGM Resorts these days.
The Culinary and Bartenders Union, representing 35,000 hospitality workers in Las Vegas, threatened to go on strike on Friday if a deal wasn't reached with major casino resort operators like MGM Resorts, Caesars Entertainment and Wynn Resorts. Caesars struck a deal earlier this week, and Hornbuckle indicated on Wednesday that MGM Resorts was on the cusp of announcing a deal of its own.
"We are literally in session as we speak, and I believe we will come to a deal today," Hornbuckle said. "We know from listening to our employees that they are looking for a pay increase, to combat inflation, as well as reduced workloads, among other concerns. This deal, when announced, we'll do just that and will result in the largest pay increase in the history of our negotiations with the culinary union."
Late Thursday morning, a deal was struck for the 25,400 MGM Resorts employees who are members of the Culinary and Bartenders Union — meaning Wynn Resorts is the only major operator in Las Vegas left to strike a deal.
What Formula One means for MGM Resorts
Hornbuckle downplayed some sentiment that Formula One wouldn't end up being the massive event it was initially billed as for Las Vegas.
"We are well prepared to welcome our guests for what promises to be an exciting and enduring tent-pole event," he said.
MGM Resorts sold out its Bellagio Fountain Club and Grandstand seats directly on the course. Furthermore, the MGM Resorts CEO noted room rates are "several multiples" above what they were during the same week in prior years. Casino front money deposits — money customers deposit into a casino account to draw from during a stay — point to Formula One being an all-time record casino event for the company.
If you're still looking to head to Las Vegas for Formula One, prepare to shell out a hefty amount: The average nightly rate at MGM Resorts during the event is more than $900, Hornbuckle said.
Still mum on Marriott details
Hornbuckle doubled down on what we already knew: The upcoming Marriott and MGM Resorts partnership won't launch until early next year.
While the casino executive exuded optimism over the deal and how it would generate higher room rates from Marriott Bonvoy members, there still aren't many details on what the full program will look like.
"We have launched the official landing page, and we'll soon announce the exciting loyalty benefits we plan to offer to both MGM Rewards and Marriott Bonvoy members and its 180 million numbers," Hornbuckle said.
Related reading:
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.