Shares of International Game Technology (NYSE: IGT) traded lower today after the lottery giant announced late Tuesday that it was recently the victim of a cybersecurity incident.
In a Form 6-K filing with the Securities and Exchange Commission (SEC), IGT said that on Nov. 17 it became aware āthat an unauthorized third party gained access to certain of its systemsā and that some disruptions resulted from the technological intrusion.
Promptly after detecting the issue, the company activated its cybersecurity incident response plan and launched an investigation with the support of its external advisors to assess and remediate the unauthorized activity. The company has also proactively taken certain systems offline to help protect them. The companyās ongoing investigation and response include efforts to bring its systems back online,ā said IGT in the filing.
IGT is one of the largest providers of lottery services, including state games and scratchers, in the US and around the world.
Financial Impact Could Be Immaterial
There are multiple examples of gaming industry cybersecurity incidents proving costly for the targeted companies, but at this point, IGT said financial effects, if any, arenāt known.
In a note to clients today, Stifel analyst Jeffrey Stantial said the financial impact of the cyber breach is likely to be āimmaterialā if IGT swiftly remedies it and that appears to be what the company is attempting to do.
āPre-established business continuity plans are underway, and we believe IGT can mostly maintain ābusiness as usualā while the breach is isolated and remedied ā though prolonged internal systems shutdown could result in slight delays in product/software deliveries,ā wrote the analyst.
Stantial also pointed out that the breach appears confined to IGTās internal systems, not consumer-facing sides of the business and that if the incident results in shipping delays, those delays would likely be measured in days or weeks, not months.
Curious Timing of IGT Cyber Issues
The cybersecurity flap at IGT occurred just a few days after Everi Holdings (NYSE: EVRI) investors approved a transaction in which that company will combine with IGTās global gaming and PlayDigital units and be acquired by an affiliate of private equity firm Apollo Global Management (NYSE: APO).
That $6.3 billion transaction was announced in July and will result in $4.05 billion in gross proceeds flowing to IGT with the remainder going to Everi. That deal is expected to close in the third quarter of 2025.
At this time, there is no evidence that the hackers that targeted IGT did so due to the merger or in an effort to disrupt that process.
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