There has been a huge uproar over the use of government assistance at casinos. During an ABC investigation of the Temporary Assistance for Needy Families (TANF) program it was discovered that a number of people on government assistance were using their debit cards at casinos. Needless to say that many people are outraged. In response to the findings of the investigation Representative Charles Boustany (R, LA) put forth an Amendment of the Social Security Act. Boustany’s H.R. 3567, the Win For Children & Families Act, basically prohibits the use of government assistance related debit cards at a number of places including casinos and strip clubs. H.R. 3567 is a very controversial bill and is the most recent casino law on the books. I will play Devil’s Advocate and look at both sides of the argument. First I will provide some more detailed information on HR 3567 and the causes behind this Bill.
HR 3567 Casino Bill – Background Info
In May of 2011 ABC conducted a private investigation into the TANF program in Arizona. TANF is managed by the Social Security administration. TANF is not like food stamps or the LINK card. If you are approved for assistance you will basically receive free cash assistance. The amount of money available is based on the number of dependents, income, expenses and other factors. You can opt to receive the money via a debit card. The ABC investigation was focused on where people were using their TANF debit cards. The investigation found that there were a number of ATM withdrawals at locations that you would not expect to find low income assistance receivers at:
- Casinos
- Strip clubs
- Liquor stores
- Resorts & cruises
- Tattoo parlors
- Adult (XXX) stores
I think we can all agree that someone receiving hundreds of dollars per month from the government for food, clothes and other necessities has no business wasting money at casinos, strip clubs and luxury resorts. This is a clear-cut case of abuse of the welfare system and the Bill HR 3567 is designed to remedy this problem. These are not cases of $20-$40 being taken out of the ATM. In one instance $1,200 was spent at a liquor store.
HR 3567 – The Arguments For
I’ve already covered some of the reasons why H R 3567 makes sense at a glance. Republicans and many Democrats have applauded this Bill. It was passed in the House by a 395-27 margin. This is one of the few Bills that politicians on both sides of the isle have agreed on in the last couple years. Our tax dollars should not go to welfare abusers who want to gamble or get a lap dance. I think that the government should track down the abusers and force them to pay back the money they stole. Perhaps some would say that is too harsh but just imagine young children that did not get to eat because their mother or father wanted to play Blackjack or get a tattoo. Even if only a very small percentage of TANF recipients are abusing the system a Bill like H.R. 3567 would seem to make sense.
HR 3567 – The Arguments Against
Opponents of HR 3567 have pointed out that there is little evidence of people actually spending the money at the businesses where the ATMs are located. This is not true in some cases though. Cruises and luxury resorts are a good example. If a TANF recipient from Arizona pulls $500 out of an ATM using her TANF debit card on a cruise liner or a resort in the Bahamas it is safe to say that they are using the money frivolously.
If someone pulls $500 out at a local casino the situation is not as clear. They could simply be using the ATM that is closest. This is especially true in rural areas. There is a pretty easy method to determine if a certain person is abusing their welfare money. Let’s say John Doe receives $1,000 per month in TANF funds. If John visits the ATM at a casino 45 minutes away in a suburban area he is likely using the money to gamble. If he made more than one transaction in a single day at the casino it is pretty safe to assume that the money, our tax dollars, went to the casino’s coffers instead of being used to buy milk, eggs and bread for John’s three children.
We cannot know for certain in most cases though. This is why some people are against HR 3567. There are certainly honest people that will be forced to waste gas money driving to another ATM instead of just running into their local casino. Should everyone suffer for the actions of a few? It is a tough situation but I think that HR 3567 will save our tax dollars and make it harder for irresponsible to waste the money they should be spending on their children. This Bill doesn’t really fix anything though. John Doe can simply go to Wal-mart, pull out $500 and visit the casino or the strip club.
HR 3567 should not affect the vast majority of casino gamblers. If you are receiving financial help from the government you have no business at a casino but if someone wants to blow their rent and grocery money at the Roulette tables HR 3567 is not going to stop them. Please share your comments on this new law below.