Do you think it’s easy for them to take a loan after a casino gets hacked? The reputation would probably take a big hit, so it’s a gamble to even try. There’s no guarantee a loan will be approved, especially since the state doesn’t have that kind of program. Maybe they could go to a bank, but that would require collateral, just like a normal loan.
It’s easier for casinos to declare bankruptcy than to take a loan. If they do take a loan, it would probably be to start a new business rather than refund gamblers, since there’s no guarantee their reputation would remain intact or that they’d still have loyal players. Once a casino gets hacked, the trust is destroyed, especially if refunds take a long time to process.
That’s how I see it. It might be unethical, but from a business standpoint, as long as it’s not illegal, I think they would choose that path.
I agree with you. Most of them will just rebrand their casinos if they have the capital for it. A hack is really a business stopper, and only a few are able to recover from it, usually the established ones whose owners hold a lot of Bitcoin and gained from its value when the price increased. They just want to diversify their investments through gambling.
A $20 million loss from hacking is painful, and for a bank or anyone who would approve that loan, it’s a big risk, even if there’s collateral. Sometimes, collateral is hard to dispose of, so it’s not as simple as it sounds.