Casinos ramp up tech, coverage for emerging risks

PHILADELPHIA – Casino operators are turning to technology such as facial recognition and analytics to help identify and mitigate emerging threats from active shooter incidents to cyberattacks, a panel of risk executives said Monday at the Risk & Insurance Management Society’s Riskworld conference.

Active shooter risk and other violent incidents are a growing concern, prompting greater use of security technologies and coordination with law enforcement, said Dave Lynch, vice president of risk management at Bally’s.

Facial recognition and monitoring systems can help identify individuals who have been banned or flagged by authorities, while some properties are deploying metal detectors and conducting joint training exercises with police, he said.

In one incident, a firearm discharge inside a casino triggered a large law enforcement response after guests reported an active shooter, delaying emergency medical access and prompting new procedures to improve coordination with first responders, Mr. Lynch said.

Cyber risk also remains a persistent concern, particularly following malware and cyberattacks about three years ago on MGM and Caesars, Mr. Lynch said.

Operators continue to invest in system monitoring, penetration testing and employee training to address cyber threats. “We keep evolving to match the threats that come at us. It’s an ever change. It changes regularly what we have to do to be vigilant,” he said.

New insurance coverages are emerging to address these risks, panelists said.

Coverage for malicious acts and active shooter events is gaining traction, with limits of up to $400 million for property damage and $250 million for liability available in the London market, said Jeff Hellman, senior vice president at McLarens.

“Just a mere threat of violence can trigger the coverage,” Mr. Hellman said.

Mr. Lynch cited a 2024 incident in which a vehicle drove off the top of a casino parking structure and into the building, triggering the malicious act coverage. The loss would not have pierced the retention on Bally’s property program, but the specialized policy responded with a lower deductible.

“It’s important to understand the insurance business and (casino) operations and understand if they did have a loss, what would be the catastrophic loss for them, and then how to plan around that,” Mr. Hellman said.

The growing complexity of casino operations, including expansion into online gaming platforms, is requiring risk managers to adapt insurance programs and risk mitigation strategies to address a broader and more interconnected set of threats, panelists said.

Casino properties combine gaming, hotels, restaurants and live events, creating multiple overlapping exposures. “You can’t really focus on one particular risk … it’s a whole corral of things that are happening at the same time,” Mr. Lynch said.

The session was moderated by Maggie Raprich, national account executive for major accounts at McLarens.