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Increase of welfare funds withdrawn in Casino ATMs

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The California government is now alarmed at growing instances of welfare funds being withdrawn at majority of casino gaming floor ATMs. The debit cards issued by the state, wherein welfare money is made available to recipients, is said to be working on ATMs located at 79 of the 148 total gambling institutions—tribal and state-licensed combined.

California Governor Arnold Schwarzenegger, upon learning the said incidents assured the public that state leaders will take action on the matter promptly. Officials of the state are currently tracking down and investigating on how much of the welfare money was being withdrawn on casino ATMs. Governor Schwarzenegger’s spokesman Aaron Mclear informed the public saying “We have instructed our vendors to prohibit these cards from being accepted at ATMs located in casinos and card rooms. It is reprehensible that anyone would use taxpayer money for anything other than its intended purpose.”

The concept of making welfare funds available to be withdrawn via automated teller machines is not a Schwarzenegger initiative, this was first introduced by Gray Davis, democrat and former California governor before Schwarzenegger. This was done in the later part of the 1990s saying that payouts thru ATM are faster and easier to monitor. The officials who were supposed to be monitoring the payouts did not, however, see how much was being withdrawn in casino ATMs, with the risk of welfare funding being used in gambling instead of being spent on needs and necessities.

Governor Schwarzenegger has been making in efforts to stop the undesired activities associated with the social services program offered by the state. He even made threats to pull the plug on the welfare program of the state mentioning how easy it is to gamble away welfare money when this can be taken from casino ATMs right next to poker and blackjack tables. Spokesman for the Assembly Republican Caucu Seth Unger weighed in on the matter saying “In a time when we have a $19-billion deficit, and we’re taking a serious look at the future of many safety-net programs, it’s appalling to think that welfare beneficiaries can use their cards in a casino”.

Growing concern is seen among political leaders, who have expressed their numerous sentiments. Shannon Murphy, spokeswoman to John Perez said that during today’s recession-stricken financial times, families that depend on welfare benefits should be monitored to ensure that “ food stamps and other services are being used the way the people of California intended them to be”. She further mentioned that California is soon on it way to fixing this flaw much like other states.

Department of Social Services’ website is said to list the casinos in the places where the state-issued welfare debit cards can be used, although it is not clear which of all the casinos are frequented by welfare recipients. Casino Royale in Sacramento is one of those casinos where welfare debit cards are being used. Part owner Faye Stearns claims she has no idea that this was happening on the casino. “We wouldn’t want to be taking money from children. The adults? Hey, that’s their problem. But kids? No” Stearns said pertaining to the possibility of lost welfare funds if these has been used in gambling instead of needy families using it for their family’s survival. She will not be opposing any efforts to put a stop to welfare cards being used inside the Casino Royale.

The welfare benefit card or referred to as Electronic Benefit Transfer acts and looks much like any ordinary debit card. In it are 2 accounts; one is for cash given to parents of needy families to support their children while unemployed, the other is an account for digital food stamps that has information on where and how the stamps can be used. Cash from the first account can be withdrawn from ATMs anywhere.