Australian casino operator Federal Group was the victim of a cyberattack last year that shut down slot machines and cost millions in lost revenue and recovery costs, according to details in its financial statements.
As reported the Australian edition of ABC News, the Federal Group company that owns Tasmania's Wrest Point Casino in Hobart and the Country Club Tasmania casino in Launceston, suffered a “major cyber attack that resulted in the encryption of a number of systems” and led to the suspension of its games. cars and a hotel reservation system for several weeks.
However, the company chose not to give in to ransom demands and did not respond to those responsible.
In a Federal Group 2020/21 statement, Executive CEO Daniel Hanna said :
“The Federal Group has not estimated the cost of a cyberattack (including outside expertise, internal resources, and lost revenue), but estimates it to be in the millions.”
He also described fiscal 2020/21 as “the worst result for the Federal Group in nearly 20 years” due to site closures and capacity restrictions caused by the COVID-19 pandemic. This is despite the fact that the group posted A$547 million ($390 million) in revenue and A$42 million ($30 million) in profit after tax.
In addition to operating casinos , the company also owns a number of hotels and other hospitality facilities and holds exclusive licenses for all slot machines in Tasmania. This monopoly will end in 2023 when a new law comes into effect allowing non-Federal Group site owners to directly buy or rent equipment.
In return, the Tasmanian government has agreed to cut the tax the Federal Group pays from slot revenues at Wrest Point and Country Club Tasmania.
Wrest Point Casino in Hobart, Tasmania was the first legal casino to open in Australia. It opened its doors in 1973 after a referendum across Tasmania in December 1968 voted to grant a casino license by a margin of 53% to 47%. This paved the way for the rise of the Australian casino industry, and to this day, many top Australian casino executives started their careers at Wrest Point.
Source: Inside Asian Gaming