Posted on: November 18, 2024, 04:10h.
Last updated on: November 18, 2024, 04:10h.
Cisco (NASDAQ: CSCO) and MGM Resorts International (NYSE: MGM) today announced an expansive technology agreement under which the casino operator gains access to much of Cisco’s software portfolio, including tools aimed at enhancing customer experiences.
The companies said the contract spans 5.5 years. Financial terms weren’t disclosed. The whole portfolio agreement (WPA) adds to the long-standing relationship between Cisco and MGM and could bolster the gaming operator’s efforts to enhance automation at its integrated resorts.
The agreement will enable the automation of MGM Resort’s network. This will pave the way for future location services and next-generation machine learning applications in the gaming and hospitality industry, unlocking new channels of guest engagement,” according to a statement.
The accord will also help MGM’s sustainability goals, including reduction of carbon emissions — something that’s long been a priority for the largest operator on the Las Vegas Strip.
Some Mention of Cybersecurity
In September 2023, a group of nefarious hackers temporarily crippled MGM’s domestic operations, resulting in a $100 million haircut to its 2023 third-quarter earnings and another $10 million in one-off expenses.
Following that event, some cybersecurity experts claimed MGM long had cyber vulnerabilities that may have enticed bad actors. The gaming company has prioritized shoring up its cyber defenses, but cybersecurity was only mentioned in passing in the press release detailing the Cisco deal.
“This includes cybersecurity, software defined networking, software defined-WAN, digital experience assurance, full-stack observability, data center and services,” according to the statement.
California-based Cisco is a major provider of cybersecurity products and services, including some that leverage artificial intelligence (AI) and cloud computing. Owing to the sheer expanse of the agreement, it’s possible that MGM will gain access to Cisco’s latest cybersecurity offerings, enabling the gaming company to bolster its defense and ward off future threats.
More Automation at MGM Could Be on the Way
One of the core themes mentioned in the Cisco/MGM statement is the idea of the expanded agreement providing the gaming company with access to technology that can improve its automation efforts, but the firms didn’t get into specifics.
On the consumer-facing side of the business, some casino operators currently use automation for tasks such as hotel check-in and dining and entertainment reservations. Across a variety of industries, including leisure and hospitality, automation and artificial intelligence (AI) has been tapped to bring efficiencies and reduced overhead to important though mundane back-office tasks.
Expanded use of AI specific to the gaming side of the business is likely to be embraced by casino operators going forward due to multiple factors. Sophisticated language learning models (LLMs) are already in use at some gaming properties, helping identify cheats and fraudulent play. Additionally, AI can provide operators perspective on slot players’ betting habits and what content they’re most responsive to.
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