A recent report that found federal employees improperly used government credit cards at casinos could have unnecessary consequences for the gaming industry, the American Gaming Association warned today.
In a May 19 report, the Department of Defense Inspector General’s Office said it discovered hundreds of thousands of dollars in transactions where department credit card holders probably used their cards for personal purposes at casinos and “adult entertainment establishments.”
The report made several recommendations, including that the government consider blocking cards from being used at specific casinos or adult entertainment businesses. The gaming association is taking issue with that recommendation.
Geoff Freeman, president of the gaming association, wrote in a letter to Defense Department officials today that while his group agrees “wholeheartedly” that government workers should be responsible with their card usage, it is “troubled” by recommendations of a ban at casinos.
“A policy that prohibits the use of government credit cards at casinos would reflect a gross misunderstanding of casinos, which consist of much more than the gaming floor itself, and would ignore the many legitimate business-related expenses incurred at gaming facilities,” Freeman wrote.
He questioned in the letter whether employees would be barred from using their credit cards to stay in a hotel room or from spending money at restaurants and stores that are part of casinos.
From July 1, 2013, through June 30, 2014, the report found 4,437 transactions totaling $952,258 where Defense Department employees likely used their cards for personal purposes at casinos. The report also identified 900 more transactions totaling $96,576 at “adult entertainment establishments.”
Bridget Ann Serchak, chief of public affairs for the Department of Defense Inspector General, said in an email that restaurants and hotels were not part of the costs questioned by the investigation if the cardholder was conducting legitimate government business.