MGM $45 Million Settlement Proposal Over Data Breaches Approved

If you were affected by the MGM data breaches over the last six years, you could be in store for some compensation.

MGM agreed to a $45 million settlement over a class action lawsuit concerning two data breaches back in October. The Nevada District has now approved the deal, meaning it can move forward, and payments can begin to be made to those affected by the breaches.  The first major breach came in 2019, and the other in 2023. 

The lawsuits accuse the Las Vegas giant of failing to take appropriate security measures to protect user data. They accuse MGM of saving money despite the risks, neglecting several key security features. 

“To avoid the risk and expense of litigation, the parties agreed to a global settlement to resolve plaintiffs’ claims for both data incidents on a class-wide basis.” the court order said, “As demonstrated below, the settlement provides significant relief for the settlement class, including a non-reversionary all-cash $45m settlement fund and valuable non-monetary relief.”

Payments will be used using a tiered system. If customers can prove that they were directly affected by the breach, they could be eligible for up to $15,000 in compensation.

MGM Losses Piling Up

While $45 million won’t cripple the gambling giant, it is yet another unexpected cost for MGM. The breaches led to the company lowering its EBITDA by $100 million as it dealt with issues across most properties.

MGM came into 2024 planning to spend money to improve its online sportsbook and casino platforms. As a result, they prepped investors for a down year, with the lawsuit over the data breaches still hanging over their heads.

In addition to those losses, BetMGM Sportsbook also had a rough NFL season. Favored teams won at the highest rate in over two decades, leading to many losses for sportsbooks. 

While MGM continues to be successful with its online platforms, these losses could take a far more enormous toll than expected.