Geoff Freeman, President and Chief Executive Officer of the American Gaming Association, said in a Thursday letter to the US Defense Department that the potential prohibition of the use of government-issued credit cards at casinos would be an overreaction.
Mr. Freeman sent the letter in a response to an audit carried out by the Defense Department, according to which almost $1 million were spent by Defense cardholders in the one-year period between 2013 and 2014 at casinos across the country.
Apart from the total amount of $952,258 being improperly spent at casinos, investigators also pointed out that Defense cardholders also used their cards at “adult entertainment establishments.”
According to the audit, about $3.26 million were spent at both adult clubs and casinos in the one-year period ended June 30, 2014. Auditors, however, excluded allowable charges, such as meals at casino restaurants and stays at hotels that feature casino facilities.
Jon Rymer, Inspector General at the agency, pointed out that the Defense Travel Management Office should enhance certain technologies that would help it find out when the government-issued cards were used. The office promised that it would consider the matter.
Mr. Rymer also suggested that the use of cards should be blocked at particular casinos. It was this recommendation that prompted the AGA President’s letter to the Defense Department. Mr. Freeman noted that “a blanket ban” on the use of the cards at gambling venues would have negative effects on the country’s gambling industry, which as the executive pointed out, “represents a key part of the US economy.”
He compared this move to the blacklisting, although informal one, of casino resort cities for government events, even though meetings in places like Las Vegas might prove to be less expensive.
Mr. Freeman emphasized in his letter that he did not approve of card misuse. Yet, he pointed out that a prohibition on the use of government-issued credit cards at casinos would result in people getting the wrong impression about such properties as ones that only offer gambling options.
According to Mr. Freeman, casinos “are more than the floor itself.” In other words, a ban on government-issued cards at the properties would prevent people employed at the Defense Department from staying at casino hotels and dining at casino restaurants.
