California Benefit Cards Usable in Most CA Casinos

The Los Angeles Times has found that special debit cards issued as part of California’s welfare program could be used to withdraw cash at over half of the casinos and poker rooms in California, creating a controversy over whether steps need to be taken to prevent this from occurring. In total, 32 (out of 58) tribal casinos and 47 (of 90) poker rooms in the state contained ATMs that accepted the state-issued debit cards.

Welfare benefits have been paid out using debit cards for many years, and have been the preferred way of distributing benefits in most of the United States for over a decade now. This system offers various benefits over paying benefits by check; for states, it makes the distribution of money more efficient and easier to track, while for those receiving benefits, it removes some of the stigma that might come from cashing a welfare check or utilizing food stamps or other aid.

This revelation comes at a time when California’s welfare system is seen as a potential casualty of the $19 billion deficit in the state budget. Governor Arnold Schwarzenegger has already targeted the state welfare system as a potential cutback before these allegations came to light, and this new information may give the measure more political support.

Seth Unger, a spokesman for the Assembly Republican Caucus, was quoted as saying that “it's appalling to think that welfare beneficiaries can use their cards in a casino,” particularly in light of the possible elimination of social safety nets in the state. Democrats countered by saying that while measures should be taken to ensure that these services are being used as intended, too many depend on them to eliminate them completely.

“Other states have closed this loophole, and the Assembly will work with the Schwarzenegger administration to make that happen,” said a spokesperson for Assembly Speaker John A. Pérez.

The owners and operators of California’s casinos and poker rooms may be placed in an awkward position because of this controversy, but it seems that most would not oppose measures to prevent the benefit cards from being able to be used in their establishments.

“I’m sure we wouldn’t want to be taking money from children,” Faye Stearns said. Stearns, one of the owners of the Casino Royale in Sacramento, claimed not to know that the state-issued debit cards worked in their ATMs.