Published on: November 20, 2024, 05:30h.
Last updated on: November 20, 2024, 05:32h.
International Game Technology (NYSE: IGT) saw a decline in its stock value today following the disclosure of a cybersecurity incident, as reported by the company on Tuesday.
In an SEC Form 6-K filing, IGT disclosed that it detected an unauthorized third party accessing certain systems on Nov. 17, leading to disruptions resulting from the breach.
Following the discovery, IGT activated its cybersecurity incident response plan and initiated an investigation with external support to address and resolve the unauthorized activity. Some systems were taken offline as a precautionary measure. The company is working to restore affected systems,” mentioned IGT in the filing.
IGT is a major player in the lottery services sector, providing state games and scratchers in the US and globally.
Financial Impact Likely Minimal
While past cybersecurity incidents have proven costly for gaming companies, IGT stated that it is uncertain of any financial repercussions at this time.
According to Stifel analyst Jeffrey Stantial, the financial impact of the breach is expected to be minimal if IGT promptly resolves it, which seems to be the case.
Stantial also mentioned that the breach appeared to be contained within IGT’s internal systems, rather than affecting customer-facing operations. Any potential delays in product deliveries are likely to be short-term, not prolonged.
Timing of Cyber Incident at IGT
The cyber incident at IGT occurred shortly after Everi Holdings (NYSE: EVRI) shareholders approved a deal for Everi to merge with IGT’s global gaming and PlayDigital divisions, facilitated by Apollo Global Management (NYSE: APO).
This $6.3 billion transaction, announced in July, is expected to close in the third quarter of 2025, with most of the proceeds going to IGT. There is currently no indication that the cyber intrusion at IGT was related to the merger or aimed at disrupting the process.