MGM sues the US Federal Trade Commission following data hack

April 16, 2024
Leer en Español

The operator is suing to block the commission's probe into data security following MGM's data hack last year.

MGM Resorts is suing the US Federal Trade Commission in an attempt to block a probe into the impact of the data hack that heavily impacted the operator last year. 

The probe into MGM’s data security following the hack resulted in a lawsuit filed on Monday in federal court in Washington. In the lawsuit, MGM argues that, due to not being a financial institution, it was not required to follow through with the commission's demands for information regarding its consumer financial data. Such a demand, therefore, went against its fifth-amendment rights.  

The operator also pointed to the US Federal Trade Commission’s Commissioner, Lina Khan, stating that the Chair was a guest at one of MGM’s Vegas properties during the hack and was inconvenienced when ‘with no IT systems available to check Chair Khan into the hotel, an MGM employee asked her to write her credit card information on paper,’ said the report.  

Khan went on to ask the worker how MGM was managing the issue of data security, a significant question when asking the Chair of the US Federal Trade Commission to write down their banking information on paper. MGM went on to state later in the lawsuit that ‘Chair Khan’s personal involvement in the facts under investigation create an appearance of a conflict of interest and upon information and belief, an actual conflict of interest.’ 

Rounding out the lawsuit, MGM presented four counts against the commission. These were:  

  • Absence of mechanism for recusal or disqualification violates the Fifth Amendment 
  • Failure to recuse or disqualify violated MGM’s Fifth Amendment rights 
  • FTC’s deadline violated the Fifth Amendment 
  • Reliance on facially inapplicable rules iolated the Fifth Amendment 

MGM asked the court to stop Khan and the commission from enforcing the data probe, to declare such an act unconstitutional, and to declare MGM as a body not subject to the Safeguards Rule and Red Flags Rule, among other requests. 

This latest legal case follows several others by notable operators, including the ongoing feud between Fontainebleau and Wynn after the latter accused the former of poaching executives, which Wynn requested a Clark County District Court judge to issue last week.  


Product Spotlight


Things get unruly in the company of some fleecy characters in the new Konami Gaming’s new Unwooly Riches slot series.

John Connelly - Interblock preparing to launch online by the end of year

John Connelly, the Global CEO of Interblock, joins the Huddle to talk about:
- The company's conversion to the online space
- The performance of ETGs
- Interblock's new philanthropic efforts
- The trend of companies going private
- And more!

Michael Hershman - Dispelling casino 'myths:' New York needs to lose fear of the unknown

Michael Hershman, CEO of the Soloviev Group, joins Tim Poole on the Huddle to put forward his case that the Freedom Plaza is the way to go for one of New York's casino licences. He fields a variety of questions - not shying away from any of them - on why 'myths' about casinos and a fear of the unknown should be dispelled, as well as acknowledging the strength of rival bids and discussing opposition to the project.

Five years ago, before the mass proliferation of social media we see today – and even before the Covid-19 pandemic – I think you would be hard pressed to find a CEO talking about “Instagrammable moments.” KPIs w...

The Global Gaming Awards: Looking ahead to 2024's ceremonies.
After more than a decade of celebrating gaming's best, Gaming America looks ahead to a bright 2024 for the Global Gaming Awards in the Americas and Asia-Pacific.
From the top: The Indian Gaming Tradeshow & Convention
Tribal gaming is a uniquely American institution and all its uncommon attributes were on display this April at the Indian Gaming Tradeshow & Convention in Anaheim, California.
Review: Terre Haute Casino Resort and Harrah's Hoosier Park Racing & Casino
Terre Haute Casino Resort vs. Harrah's Hoosier Park Racing & Casino, Gaming America's Laura Mack reviews each property.
Eureka Casino interview: CEO Andre Carrier on resort expansion
We spoke with returning guest, CEO Andre Carrier, about Eureka Casino Resort's expansion. He aims to not only change the look and feel of the casino, but to also build residential housing around it.