Gambling Shutdown As More Casinos Get Hit With Ransomware Attack

Casinos and online gaming operators continue to be frequent targets for cyber hackers, with a Michigan casino chain became the latest victim last week.

Kewadin Casinos discovered a security break over the weekend and shut down all gaming operations until the situation can be remedied. The company is owned by the Sault Ste. Marie Tribe of Chippewa Indians, which operates casinos in Sault Ste. Marie, St. Ignace, Manistique, Christmas, and Hessel.

The breach apparently affected all locations and gaming operations have been shut down since Monday as the company continues working through the issue.

“We immediately enlisted the help of third-party experts to determine how this incident was caused and to restore our gaming operations as quickly as possible,” Kewadin management noted in a statement on Facebook. “That investigation is ongoing. We understand that this is inconvenient and unexpected news. Please know our experts are working around-the-clock to restore gaming operations. We apologize for this inconvenience.”

No Computer Or Phone Access

Tribal chairman Austin Lowes told WLUC that the breach was a ransomware attack, in which a hacker encrypts a device’s files, making them inaccessible, and demands a ransom for decryption.

Kewadin is unable to access the company’s computer systems or central phone lines, according to the company’s website. A separate phone number was offered for hotel guests to get in touch with the company and refunds were being given for guests with current hotel reservations.

Statista reports that seven out of 10 cyberattacks in 2023 were ransomware attacks, with more than 317 million attempts recorded. Between 2022 and 2023, these hackers saw a major increase in ransom collected, from $457 million to $1.1 billion.

However, companies may be less inclined in recent years to pay. In the fourth quarter of 2023, only 29% of attacks worldwide resulted in a ransom payment. That’s a decrease from 41% in the third quarter of 2023. Additionally, the average amount paid out dropped from $850,000 to $569,000.

MGM Resorts suffered a major cyber attack in 2023 that affected many of the operator’s casinos across the country and ultimately cost the company more than $100 million. In February 2024, a similar attack shut down operations at an Arizona tribal casino.

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