02.28.2012 0

Welfare debit cards used at casinos and strip clubs in Colorado

A Colorado Casino

Photo Credit: Andy Cross, The Denver Post

Go figure. If you take people’s money and redistribute it, it is always funny to see the people who are “shocked” that this sort of thing happens.

Just check out what is going on in Colorado:

Debit cards issued to provide assistance to welfare recipients were used to withdraw cash at ATMs in strip clubs, casinos, bingo halls and amusement parks, a 9News investigation found.

As a result, more than $1 million in welfare funds goes to ATM owners and banks through transaction fees every year.

“When you see the type of obvious abuses that you’ve shown, it says there are people on welfare that should not be,” said Jon Caldara of the conservative watchdog group Independence Institute.

The 9News investigation included the review of 222,000 transactions involving Colorado Quest cards, the state-issued debit cards welfare recipients use to access cash at ATMs. The transactions occurred during a six-month period in2011 involving a total of $8.1 million in ATM withdrawals.

While state law bans welfare transactions at liquor stores, casinos and bingo halls, it does not at strip clubs.

But the 9News investigation found numerous examples of cash withdrawals at businesses where transactions are banned — and numerous examples of high ATM fees ultimately paid by the state even where transactions are allowed.

The taxpayers even got stuck with the $6.50 ATM fees that these folks racked up… How generous the taxpayers have become–I mean how generous the politicians have become with the taxpayers money!

Adam Bitely is the Editor-in-Chief of NetRightDaily.com. You can follow him on Twitter at @AdamBitely.

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