From the Los Angeles Times:
California welfare recipients are able to use state-issued debit cards to withdraw cash on gaming floors in more than half of the casinos in the state, a Los Angeles Times review of records found.
The cards, provided by the Department of Social Services to help recipients feed and clothe their families, work in automated teller machines at 32 of 58 tribal casinos and 47 of 90 state-licensed poker rooms, the review found.
State officials said Wednesday they were working to determine how much money had been withdrawn from casino ATMs by people using the welfare debit cards.
Gov. Arnold Schwarzenegger, who learned of the issue when asked to comment for this story, promised to take immediate action.
“We have instructed our vendors to prohibit these cards from being accepted at ATMs located in casinos and card rooms,” Schwarzenegger spokesman Aaron McLear said Wednesday. “It is reprehensible that anyone would use taxpayer money for anything other than its intended purpose.”
Administration officials said the social services agency contracts with a private ATM network to handle the electronic transfer of benefits to people on welfare, and hadn’t noticed that the taxpayer money was being withdrawn at gambling establishments.
McLear said the system of paying out welfare benefits via bank cards was created under Schwarzenegger’s predecessor, Democrat Gray Davis. Since the late 1990s most states have adopted this system, which is a viewed as a more efficient way of distributing and tracking government aid.
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