International Game Technology (NYSE: IGT) shares fell on Wednesday after the lottery giant reported late Tuesday that it had been the target of a cybersecurity intrusion.
In a Form 6-K filing with the Securities and Exchange Commission (SEC), IGT stated that on November 17, it discovered “that an unauthorized third party gained access to certain of its systems” and that the technological breach caused some disruptions.
Shortly after discovering the problem, the company activated its cybersecurity incident response plan and initiated an investigation with the assistance of external advisers to assess and remedy the illegal behavior. The corporation has also taken proactive steps to protect certain systems by taking them down. “The company’s ongoing investigation and response include efforts to bring its systems back online,” IGT stated in its filing.
IGT is one of the leading lottery service suppliers in the United States and around the world, including state games and scratchers.
Financial impact could be insignificant.
There are numerous examples of gaming sector cybersecurity events that have proven costly for the targeted organizations, but IGT has stated that the financial repercussions of the new attack, if any, are unknown at this time.
In a note to clients on Wednesday, Stifel analyst Jeffrey Stantial said the financial impact of the cyberbreach is expected to be “immaterial” if IGT quickly remediates it, which appears to be what the firm is aiming to do.
“Pre-established business continuity plans are underway, and we believe IGT can mostly maintain ‘business as usual’ while the breach is isolated and remedied — though prolonged internal systems shutdown could result in slight delays in product/software deliveries,” Stantial tweeted.
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Stantial also stated that the hack appears to have affected just IGT’s internal systems and not the company’s consumer-facing operations, and that if the issue causes delivery delays, they will most likely be measured in days or weeks rather than months.
Curious timing of IGT cybersecurity issues
The cybersecurity incident at IGT occurred just a few days after Everi Holdings (NYSE: EVRI) shareholders approved a transaction in which the company will merge with IGT’s global gaming and PlayDigital units and be acquired by an affiliate of private equity firm Apollo Global Management (NYSE: APO).
The $6.3 billion acquisition, announced in July, will result in $4.05 billion in gross proceeds for IGT, with the remainder going to Everi. The transaction is expected to finalize in the third quarter of 2025.
At this moment, there is no evidence that the hackers who targeted IGT were motivated by the merger or intended to disrupt the process.
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