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Californians on Welfare Cash in Food Stamps at Casinos

The June 24, 2023, By Bernard Livette

California recipients of welfare are able to use their state-issued debit cards in order to withdraw cash on gaming floors at more than half the casinos in the state, a Los Angeles review of records found.

The cards, which are issued by the California department of social services to help recipients feed and clothe their families work at automated teller machines at 32 out of the 58 tribal casinos throughout the state. State officials said Wednesday that the they were working hard to discover exactly how much money was withdrawn from casino ATMs by people using the welfare cards.

Gov. Arnold Schwarzenegger, who first heard of the story when he was asked to comment, promised to take immediate action in order to solve the problem.

"We have instructed our vendors to prohibit these cards from being accepted at ATMs located in casinos and card rooms," the Governor’s 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 service agency contracts with private ATM companies to handle the electronic transfer of funds to people on welfare, and had not noticed that money was being withdrawn at casinos and other gambling establishments.

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handle the electronic transfer of benefits to people on welfare, and hadn't noticed that the taxpayer money was being withdrawn at gambling establishments.

Schwarzenegger has already been at ends with other lawmakers, in his fight to combat waste and fraud in the state’s social service programs. He fought back a legislative effort to stop fingerprinting foot stamp recipients, a system designed to prevent double dipping and other abuses.

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