Spurred by a newspaper's report that California's welfare debit cards can be used to withdraw cash in more than half the casinos in the state, Gov. Arnold Schwarzenegger on Thursday issued an immediate ban on state-provided cash assistance at ATMs in gambling establishments.

The Los Angeles Times disclosed that Electronic Benefit Transfer cards work in automated teller machines at 32 of 58 tribal casinos and 47 of 90 state-licensed poker rooms. The report also found the state Department of Social Services published a list of useable ATMs where the EBT cards that work like debit cards could be cashed.
That list included the addresses of two Coachella Valley casinos — Spotlight 29 Casino, 46-200 Harrison St., Coachella, and Morongo Casino Resort & Spa, 49-500 Seminole Drive, Cabazon.

“I will use every available power I have to protect taxpayers from waste, fraud and abuse in government,'' Schwarzenegger said.

Spotlight 29 Casino spokeswoman Lisa Herman said the casino would not comment.

Global Cash Access Inc., which provides cash machines to Spotlight 29 and other casinos across the country, said it has blocked EBT cards for about 10 years.

“People who are recipients of EBT cards probably shouldn't be gambling, so it's something that would fall into our socially responsible mandate,” said Scott Dowty, executive vice president of Business Development. “It's really doing the right thing.”

Dowty said the company keeps welfare-program cards from using its machines by blocking bank identification numbers assigned to the programs.

“When we're notified of these BINs or when we get these BINs we will put them in our system and block them,” he said. “We've been doing it for close to a decade with updates on a timely basis.”

Patrick Dorinson, a spokesman for Morongo Casino Resort & Spa, said the Times' report came as a complete surprise.

As soon as the story broke, Dorinson said a team at the casino was instructed to figure out how to reprogram the machines to ban the benefit cards.

 
The report that California's welfare debit cards can be used to withdraw cash in more than half the casinos in the state, Gov. Arnold Schwarzenegger on Thursday issued an immediate ban on state-provided cash assistance at ATMs in gambling establishments.

The Los Angeles Times disclosed that Electronic Benefit Transfer cards work in automated teller machines at 32 of 58 tribal casinos and 47 of 90 state-licensed poker rooms. The report also found the state Department of Social Services published a list of useable ATMs where the EBT cards that work like debit cards could be cashed.

That list included the addresses of two Coachella Valley casinos — Spotlight 29 Casino, 46-200 Harrison St., Coachella, and Morongo Casino Resort & Spa, 49-500 Seminole Drive, Cabazon.

“I will use every available power I have to protect taxpayers from waste, fraud and abuse in government,'' Schwarzenegger said.

Spotlight 29 Casino spokeswoman Lisa Herman said the casino would not comment.

Global Cash Access Inc., which provides cash machines to Spotlight 29 and other casinos across the country, said it has blocked EBT cards for about 10 years.

“People who are recipients of EBT cards probably shouldn't be gambling, so it's something that would fall into our socially responsible mandate,” said Scott Dowty, executive vice president of Business Development. “It's really doing the right thing.”

Dowty said the company keeps welfare-program cards from using its machines by blocking bank identification numbers assigned to the programs.

“When we're notified of these BINs or when we get these BINs we will put them in our system and block them,” he said. “We've been doing it for close to a decade with updates on a timely basis.”

Patrick Dorinson, a spokesman for Morongo Casino Resort & Spa, said the Times' report came as a complete surprise.

As soon as the story broke, Dorinson said a team at the casino was instructed to figure out how to reprogram the machines to ban the benefit cards.

“Our compacts prohibit tribes from accepting government checks,” Dorinson said. “It's important to note that we had no way of knowing if someone was coming in to use the ATM with these benefit cards.”

State officials say they are trying to determine how much money had been withdrawn from casino ATMs by people using the cards, which are provided by the Department of Social Services to help recipients feed and clothe their families.
On Thursday, the governor directed the Department of Social Services to take immediate action to prevent CalWORKs recipients from getting EBT benefits from ATMs in gaming locales and require recipients to acknowledge the intent of the cash grant to meet the basic needs of the recipients family.

He also directed the state department to provide an action plan to root out waste, fraud and abuse in CalWORKs.

“I urge the Legislature to pass more aggressive laws preventing benefit recipients from withdrawing cash assistance at casino and other gambling location ATMs that I will sign as soon as it hits my desk,” Schwarzenegger said in a statement.

California Nations Indian Gaming Association chairman Daniel J. Tucker, who is tribal chairman of the Sycuan Band of the Kumeyaay Nation, which relies on an ATM that blocks the EBTs in its casino, said word will go out immediately to all tribes in the state.

What's troublesome, CNIGA spokeswoman Susan Jensen said, is the report that casinos are listed on the state website.

Jensen said the governor's executive order will be circulated immediately, so CNIGA discussion and action can be taken right away. Tucker said he suspects tribes were unaware of this activity and would be interested in discussion on reform to make sure patrons are protected, along with the state of California, Jensen said.

Dorinson agreed reform is warranted.

“This is an abuse of the taxpayers by people who were getting money to support themselves for other purposes,'' he said.

Michael Lombardi, who chairs the gaming commission at Augustine Casino, said he was unaware this situation was occurring and said a review got is under way at the Coachella area casino immediately.

“I support the ban,'' he said.

The Associated Press contributed to this report.